Even as the government said the ongoing coal blocks auctions have already realised over Rs.two lakh crore, India Inc on Thursday cautioned that summons to industrialist Kumar Mangalam Birla as an accused in the coal scam case could have repercussions "on overall investor sentiment".
"While we have the highest regard for the judicial process, such developments do have a bearing on the overall investor sentiment," Federation of Indian Chambers of Commerce and Industry (FICCI) secretary general A. Didar Singh said here in a statement.
"At a time when the government is making all efforts to create a transparent, efficient and equitable regime for investments such developments tend to create a needless trust deficit between industry, government and society," he added.
The Confederation of Indian Industry (CII) on Wednesday said such orders can create "uncertainty and anxiety among investors" and dissuade them from investing in the country.
"It is our belief that Birla represents the progressive face of Indian industry, which does not indulge in crony capitalism and carries out his businesses by the book," it said.
Expressing concern about the trial court order against Hindalco relating to the allocation of Talabira-II and III coal block in Odisha, the CII added: "Creation of an atmosphere of uncertainty sends a wrong signal to investors."
Associated Chambers of Commerce of India (Assocham) president Rana Kapoor sought an environment where industrialists and corporate leaders can openly consult with members of the government, bureaucracy and regulators as a part of their normal business conduct without the fear of future legal and investigative repercussions.
"This is a practice across most developed economies, and also being followed in our country India for decades where top business leaders regularly meet ministers and bureaucrats for organisational objectives," Kapoor said in a statement.
Former prime minister Manmohan Singh, Birla and former coal secretary P.C. Parakh were summoned as accused by a special Central Bureau of Investigation court, which observed that the former prime minister was roped into the criminal conspiracy to accommodate Hindalco in the Talabira-II block allocation in 2005.
Hindalco on Wednesday denied that any of its officials had pursued any unlawful or inappropriate means to secure allocation of the Talabira block.
"Hindalco reiterates that none of its officials, including its chairman Kumar Mangalam Birla, have pursued any unlawful or inappropriate means for securing the allocation of the coal block," the company said in a statement.
It said it "cooperated with investigating authorities completely during the course of investigation" and was confident that it would "stand vindicated at the end of the ongoing legal process".
Aditya Aluminium Project, for which this allocation was made, has been implemented by the company at an investment of over Rs.13,000 crore.
"The plant is already operational even though Talabira-II and III coal block could not become operational for want of clearances. Consequently, Hindalco is having to suffer irrecoverable financial stress," the company said.
Meanwhile, Friday will see the close of the second round of e-auctions of cancelled coal blocks. The total estimated amount of revenue likely to be generated from 33 coal mines already auctioned is Rs.209,740 crore, Coal and Power Minister Piyush Goyal told parliament on Thursday.
"In addition, power fuel cost will reduce by approximately Rs.96,971 crore resulting in power tariff savings for consumers," Goyal told the Lok Sabha in a written reply.
The auctions follow the Supreme Court's decision in September last to cancel the allocation of 204 coal mines allocated between 1993 and 2010.
