Aditya Birla Group firm Hindalco is doubtful to get tapering coal linkage for its captive power plant in Odisha. Coal Ministry conveyed to the firm that state-owned CIL does not have sufficient fuel.
Hindalco had approached to the Coal Ministry for tapering linkage for its captive power plant in Odisha. Company stated that Talabira II coal block production would be delayed which had allocated to Hindalco for power plant. Hindalco had submitted a requirement for the Talabira II and Bijahan coal blocks for its proposed 200 MW captive power plant (CPP) expansion at its Hirakud facility and proposed Greenfield Aditya Aluminium Project with 720 MW CPP at Lapanga in Orissa that was to be set up in 2008.
The Coal Ministry, indicated to the company that it was not possible for Coal India Ltd to provide tapering linkage because of unavailability of sufficient coal.
Tapering Linkage is the short-term linkage provided to those coal consumers who have been allocated captive coal blocks for meeting the fossil fuel requirements of their end use plants but production of coal from the allotted mines could not develop on time.
The Coal Ministry had allocated Talabira-II mine in Odisha for 700 MW power generation of Aditya Aluminium, a division of Hindalco Industries Ltd and for 2000 MW power plant of Neyveli Liginte Corp (NLC). The Coal Ministry had in September 2010 issued show cause notices to Hindalco Industries, NLC and Mahanadi Coalfield Ltd for delaying the production from Talabira-II coal block.
Hindalco said, “The Company's proposal for tapering linkages for its captive power plant in Odisha is not rejected”.
– Sourced
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