Hindalco unlikely to get tapering coal linkage for power plant

Coal Ministry has indicated to the company that it was not possible for CIL to provide tapering linkage as it does not have sufficient coal

Aditya Birla Group firm Hindalco is unlikely to get tapering coal linkage for its captive power plant in Odisha with the Coal Ministry conveying to the firm that state-owned CIL does not have sufficient fuel.

"Hindalco had approached the Coal Ministry seeking tapering linkage for its captive power plant in Odisha as the company stated that the production from the coal block (Talabira II) allocated to it for the plant would be delayed," said an official.

The Coal Ministry, the official said, has indicated to the company that it was not possible for Coal India Ltd to provide tapering linkage as it does not have sufficient coal.

When contacted, Hindalco said: "The company's proposal for tapering linkages for its captive power plant in Odisha is not rejected".

Hindalco has been in the news following CBI's lodging a case against its chairman Kumar Mangalam Birla and former Coal Secretary P C Parekh on charges of criminal conspiracy and corruption in connection with alleged irregularities in allocation of Talabira coal blocks in Odisha.

Tapering Linkage is the short-term linkage provided to those coal consumers who have been allocated captive coal blocks for meeting the fossil fuel requirements of their end use plants but production of coal from the allotted mines could not develop on time.

The Coal Ministry had allocated Talabira-II mine in Odisha for 700 MW power generation of Aditya Aluminium, a division of Hindalco Industries Ltd and for 2000 MW power plant of Neyveli Liginte Corp (NLC).

The Coal Ministry had in September 2010 issued show cause notices to Hindalco Industries, NLC and Mahanadi Coalfield Ltd for delaying the production from Talabira-II coal block.