Acute coal shortage affects NALCO's smelter plant operations

Short supply of coal has severely impacted the production of National Aluminium Company Ltd (NALCO), the 'navratna' central public sector enterprise said on Wednesday.

Besides, the cost of power purchased from the state grid is costlier than the power produced by NALCO at its captive power plant.

NALCO depends upon Mahanadi Coalfields Ltd for the supply of coal to its captive power plant at Angul and steam and power plant at Damanjodi, it said in a statement.

The company's requirement of coal for its power plant at Angul is about 17,000 tonnes per day but the supply is 8,000 to 9,000 tonnes, resulting in a shortfall of 7,000 to 8,000 tonnes per day.

Due to short supply over the past seven weeks, the buffer stock of coal available with NALCO's captive power plant has been exhausted.

"As on date, 80 electrolytic pots in the smelter plant have been stopped. Since the coal supply position is not improving, NALCO may be forced to further shut down up to 227 numbers of electrolytic pots in phases," the company said.

NALCO is one of the largest integrated primary producers of aluminium in Asia with presence encompassing the entire value chain -- from bauxite mining, alumina refining, aluminium smelting, power generation to downstream products.

The government-owned company registered a net profit of Rs 1,732 crore in 2018-19.