Shares of Coal India tanked by nearly 3 per cent in morning trade on the bourses today after the company said its profitability would be eroded by about Rs 2,000 crore per annum post-enactment of a proposed new mining Bill that was cleared by Cabinet on Friday.

According to the new Mines and Minerals (Development and Regulation) Bill, 2011, coal miners have to share 26 per cent of their profits with project-affected people. The Coal India Chairman, Mr N.C. Jha, has said, “It (new Mines Bill) would hit the profitability of the company by about Rs 2,000 crore.”

Shares of Coal India opened on a weak note and then dipped by over 2.76 per cent from its previous closing price to a low of Rs 323.55 on BSE. Similar movement was seen on the National Stock Exchange, where the stock dropped by 2.95 per cent to hit a low of Rs 323.35.

However, Coal India later regained some of the lost ground and was trading at Rs 329.50 on BSE, down 0.98 per cent, and at Rs 329.85 on NSE, down 1.01 per cent, at 10.50 a.m.

Marketmen attributed the fall in the counter to the projected impact of the new Mines Bill on the profitability of the company. The bearish trend in the broader market also dragged down the stock.

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