Centre reserves Pottangi mines for Nalco's new mn-tonne refinery

Bauxite deposits in the mines are critical for the firm's Rs 5,540 cr expansion project, state steel minister says

Centre has reserved the bauxite deposits at the Pottangi mines in Odisha in favour of Nalco in a bid to help the state-run aluminium producer start its one MTPA alumina refinery by 2020, Parliament was informed today.

Besides, Odisha government has also taken an in-principle decision in this regard, Minister of State for Steel and Mines Vishnu Deo Sai said in a written reply to Lok Sabha.

"The proposal of Nalco for setting up of a one million tonne per annum (MTPA) alumina refinery (stream-5) at Damanjodi (Koraput district in Odisha) at an estimated cost of Rs 5,540 crore was approved by Nalco Board on December 10, 2014. The schedule completion date in July 31, 2020," he added.

Allotment of Pottangi bauxite deposit in favour of Nalco is critical for the expansion project, the minister said.

"Ministry of Mines had taken up the matter with Government of Odisha and reserved the deposit in favour of Nalco. Government of Odisha has also taken an in-principle decision in this regard," Sai added.

On the issue of development of coal blocks in Angul District of Odisha, he said Coal Ministry through their letter dated September 11, has allotted Utkal D & E blocks in favour of Nalco and directed its Nominated Authority to execute the allotment order of the blocks in favour of Nalco.

Nalco has drawn an action plan to start raising of coal in 24 months from the date of execution order, the minister said.

"Considering March 31, 2016 as zero date on execution of agreement, production from Utkal-D block is expected to commence in April, 2018. Production from Utkal-E block is expected to commence in April, 2019," Sai informed the House.