Coal India threatens UltraTech to cut supplies
Coal India (CIL) has recently threatened to cut supplies to four of UltraTech Cement's captive power plants located in Rajasthan, Chhattisgarh and Madhya Pradesh. CIL has also warned 15 other captive power plants to snap long-term coal linkages.
If the CIL cuts coal supply to UltraTech Cement, would deal a blow to the Aditya Birla group's cement business. The mining giant wrote to 16 captive power plants on July 9 threatening to snap long-term linkages. Apart from UltraTech units, the rest mostly are small steel makers.
UltraTech's captive power plants include a 46 mw plant at Hirmi Cement Works in Raipur, Madhya Pradesh, a 35 mw CPP Unit 2 at Aditya Cement plant in Chittorgarh, Rajasthan, a 23 mw unit at Rawan Cement Works in Raipur, and another 23 mw unit at Vikram Cement plant in Khor, Madhya Pradesh.
The aggregate linkage quantity of coal for these four units are 0.73 million tonne a year. These units, picked as the captive plants, were found to be incomplete when a meeting of the Standing Linkage Committee reviewed their implementation status, officials of Coal India said.