Fwd: The coal allocation issue
Prakash Mahtani
The information contained in this electronic communication is intended solely for the individual(s) or entity to which it is addressed. It may contain proprietary, confidential and/or legally privileged information. Any review, retransmission, dissemination, printing, copying or other use of, or taking any action in reliance on the contents of this information by person(s) or entities other than the intended recipient is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us by responding to this email or telephone and immediately and permanently delete all copies of this message and any attachments from your system(s). The contents of this message do not necessarily represent the views or policies of Aditya Birla Group. Computer viruses can be transmitted via email. Aditya Birla Group Companies attempts to sweep e-mails and attachments for viruses, it does not guarantee that either are virus free. The recipient should check this email and any attachments for the presence of viruses. Aditya Birla Group does not accept any liability for any damage sustained as a result of viruses.
Dear Colleagues,
You may have probably viewed media reports on an FIR naming Hindalco and our Chairman on the coal issue. We wish to inform you that this seems to be part of a larger case entailing coal allocation by the Government of India to companies, and being one of the companies, we are being investigated as well.
We wish to state unambiguously that we have followed every process required for allocation of coal blocks completely, as stipulated by the Government policy. Mr. D. Bhattacharya, Managing Director, Hindalco and Vice Chairman, Novelis, statement follows –
Allegations made on Hindalco – paradoxical
D. Bhattacharya, Managing Director, Hindalco
“On the unfounded allegations, reported by the media, on the CBI FIR against Hindalco and Chairman, Mr. Kumar Mangalam Birla, the reality of the matter is very different from what has been projected.
In fact, the application for the Talabira II mine was made in 1996 by Indal, the Indian subsidiary of Alcan, the Canadian aluminium major. Indal was acquired by Hindalco in the year 2000, after which Hindalco pursued the matter further. The actual allocation of the mine was done in November 2005, which is nine years after the first application was made.
In the interim, Hindalco made several representations to the Government as any corporation would normally make in such circumstances, and only through formal channels. To imply that our Chairman, Mr. Kumar Mangalam Birla, managed to overturn the decision of the Screening Committee, is preposterous. The truth of the matter is that the Talabira II and III mines together have been finally allotted jointly to Mahanadi Coal Fields and Neyveli Lignite, both public sector undertakings, with Hindalco having only a 15% stake in the joint venture. The project for which this mine was allocated – Aditya Aluminium – is ready to commission later this month, whereas the clearances to permit mining have not been received so far. Consequently, no mining has been carried out. This will mean delayed returns from Aditya Aluminium, which has been set up on a capex of over Rs. 11,000 crores.
We hope this puts in perspective the struggle Hindalco has had to undergo for securing the coal and the irrecoverable economic loss that Hindalco has had to suffer. In the light of these facts, the allegations made are paradoxical”. ENDS..............
------------------------------------------------------------------------------------
Best regards,
pragnya
Dr. (Mrs.) Pragnya Ram | Group Executive President - Corporate Communications & CSR
Aditya Birla Management Corporation Pvt. Ltd., Aditya Birla Centre, ‘C’ Wing, 1st Floor
S. K. Ahire Marg, Worli, Mumbai – 400 030, India.
Telephone: +91 22 66525160 / 24995160 | Fax: +91 22 66525741 / 24995741
Mobile: +91 97020 24395 | Website: www.adityabirla.com | Email: pragn...@adityabirla.com
The information contained in this electronic communication is intended solely for the individual(s) or entity to which it is addressed. It may contain proprietary, confidential and/or legally privileged information. Any review, retransmission, dissemination, printing, copying or other use of, or taking any action in reliance on the contents of this information by person(s) or entities other than the intended recipient is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us by responding to this email or telephone and immediately and permanently delete all copies of this message and any attachments from your system(s). The contents of this message do not necessarily represent the views or policies of Aditya Birla Group. Computer viruses can be transmitted via email. Aditya Birla Group Companies attempts to sweep e-mails and attachments for viruses, it does not guarantee that either are virus free. The recipient should check this email and any attachments for the presence of viruses. Aditya Birla Group does not accept any liability for any damage sustained as a result of viruses.
