Coal deallocation: Hindalco to pay Rs.500 crore penalty
New Delhi, Sep 25 (IANS) The Aditya Birla Group-run aluminium company Hindalco Industries, whose coal mines have been de-allocated by the Supreme Court verdict Thursday, said it will incur a one-time loss of about Rs.500 crore on account of penalty on the coal already mined from the deallocated block.
"At a suggested levy of Rs.295/tonne on coal, the total one-time impact on the company would be around Rs.500 crore," the company said in a stock exchange filing.
The Supreme Court Wednesday cancelled 214 coal blocks allocated from 1993 to 2011, except four vested with the NTPC, SAIL and Sasan Ultra Mega Power Project (UMPP).
The court also imposed an additional levy of Rs.295 per tonne of coal extracted from exempted or operational mines.
Hindalco said it was not expecting the captive coal from these mines immediately and hence has plans to operate on purchased coal.
"The only incremental impact because of the cancellation of coal blocks would be on the cost of production at Hirakud smelter starting April 2015, which is not expected to be significant," the statement added.
Hindalco currently has one operational mine called Talabira I, on which it will pay a fine. Its other mines Talabira II, Mahan, and Tubed coal blocks are not operational yet.