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| State nod for Potangi bauxite mining lease to Nalco |
| BS Reporter / Kolkata/ Bhubaneswar Mar 03, 2010, 00:27 IST |
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The Orissa government has recommended the grant of Mining Lease (ML) for Potangi bauxite reserve in Koraput district in favour of the public sector National Aluminium Company Ltd (Nalco). Potangi is estimated to have bauxite reserves of over 70 million tonnes.
However, the final ML would be granted after obtaining the prior approval of the Union government and subject to the company obtaining all the statutory clearances.
“The Orissa government has approved the grant of mining lease (ML) in favour of Nalco. The recommendation in this regard has been sent to the GoI”, Ashok Dalwai, secretary, steel and mines, Orissa government, told Business Standard.
Sources said, the state government has put some conditions for the public sector aluminium major before recommending Nalco’s case for grant of ML. The company has been asked to spend 5 percent of its net profit or Rs 10 crore, whichever is higher, on peripheral development.
A Special Purpose Vehicle (SPV) would be formed for this purpose in line with the one formed by Vedanta Aluminium Ltd (VAL) at Lanjigarh. Though the details of the modalities for formation of the SPV have not been worked out, the Revenue Divisional Commissioner (RDC) is likely to be the chairman of the proposed SPV. The ML would be given over an area of 1738.04 hectares and the company would be allowed to undertake mining outright as the area is part of the eastern bauxite belt which has been prospected.
After consultation with the Orissa government, the Union ministry of mines had reserved the area for mining by Nalco under the sub section 1(a) of section 17 (a) of the Mines and Minerals (Development and Regulation) Act, 1957.
The grant of mining lease comes as a booster to the Navratna company planning ambitious expansion plans to enhance the capacity of its refinery and smelter.
It may be noted, Nalco had applied for bauxite mining lease over an area of 2618 hectares in August 1992. Subsequently, the ministry of mines reserved 1738.04 hectares for the company in April 2007. Since then the proposal was pending with the state government for grant of ML.
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