Birla expects relief from Centre over coal blocks cancellation

Aditya Birla Group Chairman Kumar Mangalam Birla today said the Union Government should ensure that the massive investments made by the companies to acquire coal blocks do not go down the drain following Supreme Court's order cancelling the mine permits.
In a major blow to the corporate sector, the Supreme Court today quashed allocation of 214 out of 218 coal blocks which were alloted to various companies since 1993.
Birla's group firm Hindalco was one of the firms which were allocated these blocks. The firm had been awarded Talabira II and III coal blocks in 2005.
"The government should have an alternative (plan) as a lot has been invested.... Hope to learn about government's action plan in the near future," Birla said on the sidelines of the company's 55th annual general meeting held here.

He also said he was sure that the government had a plan ready to tackle the issues arising out of the court's order.
The CBI had lodged an FIR against Birla, former coal secretary P C Parakh and others in October last year alleging that Parakh reversed his decision to reject coal block to Hindalco within months "without any valid basis or change in circumstances" and showed "undue favours".
The investigating agency, however, on August 28 filed a closure report in the case, giving a clean chit to Birla.