Hindalco gains 3% as PM is 'satisfied' with coal allocation process

Shares in Hindalco Industries Ltd gained as much as 4.3 percent in morning trade after Prime Minister Manmohan Singh’s office said he is satisfied with the outcome of the process of allocating coal blocks to certain companies. However by 12.13 pm, the stock was off its high and was up 3 percent at Rs 117.90.

The PMO, while making it clear that Singh was the ‘competent authority’ who cleared the proposal mooted by the Coal Ministry in 2005, underlined that the allocation to a joint venture, including Hindalco, was not done at the cost of PSU Neyveli Lignite Corporation.

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The allocation of Talabira coal block in Odisha is in the eye of a storm with CBI booking Aditya Birla Group Chairman Kumar Mangalam Birla and former Coal Secretary P C Parakh.

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Parakh has said if he was accused of conspiracy, then the Prime Minister also should be made an accused as he had approved the revised decision.

The PMO acknowledged that the final decision on the allocation “differed” from the earlier recommendation of the Screening Committee.

“This was done following a representation received in the Prime Minister’s Office from one of the parties, which was referred to the Ministry of Coal,” the PMO said in a statement. The PMO said CBI is free to investigate the case as it may have got hold of some documents post-allocation.

Agencies