Balco in crisis as Chhattisgarh govt asks to shut down power plant

The plant is accused of violating green norms

State-run Chhattisgarh Environment Control Board (CECB) had served notice on Bharat Aluminium Company Limited (Balco) to close its 1,200 Mw power plant for allegedly violating green norms.

The company has been asked to file its reply within 15 days. The board would examine the reply and would ask Balco to shut down its 1200-Mw power plant if found “unsatisfactory”.

The action came following reports that Balco was pumping polluted water in the Belgiri nullah (canal) following near the plant after the ash dyke got damaged. The canal drains into Hasdeo river.

CECB Chairman Aman Kumar Singh directed the officials to take stringent action after getting the report of the alleged lapse on the part of company's management. The development had landed Balco - in which London-listed Vedanta Resources has 51 per cent stake- in crisis.

The company officials did not respond to its version on the issue.

Balco has a major facility in Chhattisgarh’s Korba district with a capacity to produce 570,000 tonnes of aluminium per annum. The 1200-Mw power plant that is located in the same premises is feeding a part of the aluminium complex. Of the four units of 300-Mw each, two are for captive use while other two for commercial.

The company has two plants with a capacity of 245,000 tonnes per annum (tpa) and 325,000 tpa. The first one is getting supply from the 540-Mw power station, another captive plant of Balco while the 1200-Mw plant now under the scanner is feeding the 325,000 tpa unit.

The closure of 1200-Mw power plant would mean cutting power supply to its major aluminium plant and landing company into deep trouble. The Government of India is holding the remaining 49 per cent stake in the company.