By Bizodisha Bureau, Bhubaneswar, September 15, 2015 : The blue-chip Indian government owned Navaratna public sector giant, National Aluminium Company Limited (NALCO), has been allocated Utkal D and E Coal Blocks, in Angul district of Odisha ending year-long uncertainty over sourcing coal for its plants.

The metal major desperately needed these two coal block to run its 4.6 lakh ton aluminium smelter and 1200 MW captive power plant are located.

“The company’s smooth operation and expansion plans hinged on the allocation of these blocks,” Nalco chairman cum managing director T.K. Chand said.

“With this, NALCO’s captive resources add 200 million tonnes of coal, which will see the company through the next three decades and more,” a much relieved Chand remarked.

Way back I 2004, the Indian government had allotted the Utkal E Coal Blocks to Nalco. The Company also had spent Rs.126.34 crore for this block, including Rs.98 crore towards compensation against land acquisition for development of coal blocks. The company had also spent considerably on infrastructural facilities and various Corporate Social Responsibility [CSR] activities in the area.

However, the cancellation of allocation of Utkal E Coal Block, following Supreme Court’s order to de-allocate 204 coal blocks across the country, came as a setback to the company. NALCO was pursuing with the union government for re-allocation of coal block under the allocation route, as the end-use investment had already been made.

After relentless persuasion, the Indian government allocated two coal blocks in favour of the company which will enable the company to meet its expansion plans.

“A sense of gratitude and euphoria has engulfed the entire company, since this momentous decision is intricately woven with the dreams and aspirations of NALCO Collective,” Chand said.