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Hindalco’s plan to run its Mahan Aluminium and Hirakud Aluminium smelter on captive coal has been dealt a blow with the Coal Ministry keeping the blocks linked to both the projects for the power sector.
Blocks reserved for the power sector do not include captive power plants.
On Wednesday, the Ministry notified the list of coal blocks to be auctioned and allocated along with the specified end-use.
The Mahan coal block in Odisha, which was given to both Essar Power and Hindalco, has been reserved for the power sector.
The coal from the block was to feed the Mahan Aluminium smelter where the company had invested around ₹10,500 crore. While Hindalco may no longer be able to utilise it, Essar Power can if it decides to bid for the block.
Hindalco’s Talabira I coal block, which was de-allocated by the Supreme Court order of September 24, was key to the company’s expansion plan for its existing Hirakud smelter. The Talabira-I block has also been reserved for the power sector.
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