Just as Hindalco won four mines in Jharkhand and Chhattisgarh in the ongoing fresh coal auctions last month and planned to bid for more, the summons issued to Kumar Mangalam Birla in the coal auction case puts the firm in the spotlight and raises concerns about its Rs. 13,000-crore aluminimum project in Odisha.
Analysts reckon that winning of coalmines would be crucial for the aluminium project, as it would ensure fuel security for the firm’s 650-mega watt captive power plant, which, in turn, is critical for the aluminium smelter.
“As of now, there is no incremental impact on the project, as the needs have been met through imported coal. The firm’s aggressive bidding in the coal auctions shows their desperate need for securing coal mines,” a Mumbai-based analyst, who did not wish to be named, said.
According to him, as per provisions in the Coal Act, if proven guilty in court of law, then the licences would be cancelled and the firm would not be allowed to participate in the auctions. “We have to see how the case goes from here on,” he added.
“Just a summon does not mean that the case is going the other way. Unless proven guilty, there is no problem in the ongoing auctions. Only when proven guilty, the repercussions are far reaching ,” Ramesh Vaidyanathan, Managing Partner, Advaya Legal, said. As of now, the issue seems to cast long shadow on the Aditya Birla Group, in general, and Hindalco, in particular.
Dr. Singh and the Coal trail
- ›March 2012 CAG’s draft report accuses govt of ‘inefficient’ allocation of coal blocks in 2004-2009; estimates windfall gains to allottees at Rs 10.7 lakh crore.
- ›May 29, 2012 Prime Minister Manmohan Singh offers to give up his public life if found guilty in the scam. Two days later, CVC directs a CBI enquiry
- ›November 25, 2014 CBI informs a special court that it was not permitted to question former Prime Minister Manmohan Singh. The investigating agency also said it wasn't necessary.
- ›December 17, 2014 Special court ordered the CBI to examine former Prime Minister Manmohan Singh.
- ›January 20, 2015 CBI records the statement of former Prime Minister Manmohan Singh.
- ›March 11, 2015 Special court summons former Prime Minister Manmohan Singh, Kumar Mangalam Birla and P.C. Parakh as accused.
- >Detailed timeline of the coal scam
Published - March 12, 2015 02:46 am IST