Hindalco, Jindal Steel & Power and Vedanta terminate supply contracts with Coal India
KOLKATA: Hindalco Industries NSE -2.35 %, Jindal Steel & Power and Vedanta Ltd. NSE 0.23 % have terminated supply contracts with Coal India NSE 3.53 %, with two companies citing poor quality, pilferage and high transportation costs.
Coal India said in response to ET’s query that the cancellations appear to be a calculated move since the companies can now buy the fuel at relatively lower prices due to the overall drop in demand. Coal India has also reduced floor prices for auctions.
