In response to the CBI filing a First Information Report against Adiya Birla Group Chairman Kumar Mangalam Birla, Hindalco has clarified that the application for the Talabira II mine was made in 1996 by Indal, the Indian subsidiary of Canadian aluminium major Alcan.
Indal was acquired by Hindalco in 2000, after which Hindalco pursued the matter further. The actual allocation of the mine was done in 2005, nine years after the first application was made.
Further clarifying the issue, D. Bhattacharya, Hindalco MD, said the company 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 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 per cent stake in the joint venture,” said Bhattacharya.
The project for which this mine was allocated is ready to commission later this month, whereas the clearances to permit mining have not been received so far, he added.
Consequently, no mining has been carried out. “This will mean delayed returns from our project, which has been set up on a capex of over Rs 11,000 crore,” he said.
“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,” he said.