Hindalco stares at ₹500-cr penalty

Hindalco Industries, an Aditya Birla Group company, expects a one-time impact of ₹500 crore, if the Government levies a penalty of ₹295 a tonne as suggested to the Supreme Court. This apart, the company in a statement said the cancellation of coal blocks would push up the cost of production at Hirakud smelter, starting April next year. Of the four coal blocks allotted to the company, it gets coal only from Talabira I for its power plant at Hirakud. The other coal blocks at Mahan, allotted jointly with Essar Power, and the Tubed coal block allocated jointly with Tata Power, and the Talabira II & III along with Mahanadi Coal Fields and Nayveli Lignite Corporation were yet to start production, the statement added. The company imported 3 lakh tonnes of coal last fiscal. Shares of Hindalco were down four per cent at ₹150 on Thursday.