*PhillipCapital India Update*
JSPL Update: Probability of getting Sarda inventory is high
Our further probe into the matter suggested that Sarda mine was last renewed on 14th august 2001 for a period of 20 years (pic 1) while MMDR says leases which are renewed before enactment of this act will be allowed to continue till actual expiry (pic 2).
Therefore; we believe that Sarda may be ready to pay the Rs 9bn as it allows them to resume the mining and will also allow them to ample time to mine (15 mn tonne EC available; used to mine at 8-10 mn tonne annually) and recover the amount.
JSPL to get inventory: Odisha government has said today in Court that if Sarda pays dyes of Rs 9bn they will allow JSPL to lift its 12 mn tpnne inventory (JSPL has already paid; so no cash outflow).
We maintain Buy on JSPL
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