Hindalco Industries, the Aditya Birla Group flagship company, has clarified on the Supreme Court cancelling coal block allocation. The company said that at a suggested levy of Rs 295/T on coal, the total one time impact on the company would be around Rs 5 billion.
''In any case we were not expecting the captive coal immediately; hence have plans to operate on purchased coal,'' it said.
''The only incremental impact because of the cancelation of coal blocks would be on the cost of production at Hirakud smelter starting April 2015, which is not expected to be significant,'' said Hindalco Industries.
The company said during market hours on Thursday that the company had been allocated four coal blocks namely, Mahan coal block jointly with Essar Power, Tubed coal block jointly with Tata Power, Talabira II & III coal blocks jointly with Mahanadi Coal Fields and Neyveli Lignite Corporation and Talabira I coal block. Mahan, Tubed and Talabira II & III coal blocks are not yet in operation while Talabira I coal block feeds coal to the power plant which supplies power to company's Hirakud Smelter.
Shares of the company gained Rs 5.75, or 3.84%, to trade at Rs 155.30. The total volume of shares traded was 472,489 at the BSE (10.58 a.m., Friday).