NALCO gains on bagging mining lease for Utkal-E coal block

National Aluminium Company (NALCO) rose 3.02% to Rs 59.75 after the company said it has been granted the mining lease of Utkal-E coal block in Odisha.

The lease has been granted by the Department of Steel & Mines, Government of Odisha, through a notification issued on April 12.

As per the notification, the mining lease of Utkal-E coal block is over an area of 523.73 hecatres in villages Nandichhod, Gopinathpur Jungle, Kundajhari Jungle, Kosala & Korada under Chendipada Tahasil of Angul District.

The initial capacity of Utkal-E coal block is 2 million tonnes per year with a total mineable reserve of approximately 70 million tonnes.

NALCO already executed the mining lease for the Utkal D Coal block in March 2021. With the grant of Utkal D & E coal blocks, the total mineable coal reserve of the company will be 175 million tonnes, which will be pivotal in meeting the coal requirement of its captive power Plant at Angul, Odisha.

NALCO will be able to produce 4 million tonnes coal per year from the operation of Utkal-D & E coal blocks. The lease for Utkal-D & E Coal block has been granted to NALCO for a period of 30 years.

Sridhar Patra, CMD of the company, said: "With the grant of the mining lease of Utkal E coal block, the planned expansion activities of the Company will get a boost and will contribute significantly to the bottom line of NALCO."

NALCO is a Navratna group 'A' CPSE having integrated and diversified operations in mining, metal and power under Ministry of Mines, Government of India. As on 31 December 2020, the Government of India held 51.5% equity of NALCO.

On a consolidated basis, NALCO posted a net profit of Rs 239.71 crore in Q3 FY21 compared with net loss of Rs 33.9 crore in Q3 FY20. Revenue from operations grew by 14% to Rs 2378.79 crore in Q3 FY21 as against Rs 2088.35 crore in Q3 FY20.

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