NALCO gets coal ministry nod to mine Utkal coal block in Orissa

National Aluminium Company (NALCO), one of India's leading producers and exporters of alumina and aluminium, has received the union coal ministry nod to mine a coal block in Orissa. The allocation was made for the NALCO’s Utkal coal block at Angul, about 161 km from Bhubaneswar. The block covers an area of around 212 hectares and has an estimated coal reserve of 70 million tons.

The coal is meant for two units of Nalco's captive power plant near Angul, which supplies power to the company's aluminium smelter located nearby. The two units commissioned in 2009 and 2010 each of 120 MW have been operating till now with coal procured by the company through expensive e-auctions and imports.

The linkage with Mahanadi Coalfields granted to NALCO was valid up to the scheduled commencement of production from Utkal-E Coal Block, which has been delayed in the process of securing environmental clearance and further delayed due to land acquisition. Nalco will soon sign the mining lease deed with the state government and will carry out mining in the allocated area after obtaining permission from the Forest Department under Forest Conservation Act and meeting other stipulations.