Enhancing prospects of NALCO’s future expansion plans, the Odisha government may recommend the central government to grant Potangi Bauxite lease to PSU.
Sources in know of the development said, the Chief Minister, Naveen Patnaik has cleared proposal of NALCO. The company has been requesting the state government since last few years to recommend proposal to the union government for new bauxite deposit at Potangi in Koraput district.
Notably, the Navaratna NALCO way back in 1992, made application to state government for recommending in its favour this reserve at Potangi. The reserve has a deposit of 75.22 MnT bauxite.
State PSU, Odisha Mining Corporation and two other private players were also making an effort to get this mine, said sources.
Taking into account the requirement of NALCO, Ministry of Mines in the union government had reserved Potangi for NALCO since 2007 for undertaking prospecting or mining lease.
Difference of opinion between the state government and aluminium major over some other issues was the reason for the former to drag its feet so long to recommend the case, said sources. Adding to that sources stated, NALCO, which is on expansion mode for its aluminium refinery at Damanjodi, is largely dependent on this deposit.
NALCO will take up fresh investment of INR 55 billion for 1 MnT of aluminum refinery with this new mine in hand. The new CMD of NALCO, TK Chand proactively pursued the matter with the state government while agreeing to the issues raised by latter for greater interest of the state.
NALCO has not only committed to take up CSR activities, as per the stipulated norms, its CMD, Mr. Chand has agreed to spend INR 3 billion towards visible CSR projects in Damanjodi and Angul.
Now, NALCO will face no difficulty for raw material as both the deposits will be enough for present refinery and the proposed one, said sources.
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