OREANDA-NEWS. August 24, 2011. Ministry of Coal has granted its prior approval for mining lease of Utkal-E Coal Block at Angul, with an estimated reserve of 70 million tonnes and covering an area of around 212 hectares, in favour of National Aluminium Company Limited (NALCO), a Navratna PSU.

The allocation was made to meet the coal requirement of new units of NALCO’s Captive Power Plant at Angul, which supplies power to the company’s Aluminium Smelter located nearby.

 “The two new units of 120 MW each, commissioned in 2009 and 2010 respectively, have been operating from coal procured by us through e-auction and imports,” says Shri B.L. Bagra, CMD, NALCO. The linkage with Mahanadi Coalfields granted to NALCO was valid up to the scheduled commencement of production from Utkal-E Coal Block, which has been delayed in the process of securing environmental clearance and further delayed due to land acquisition. “For last one year, there is no linkage coal available to the company, which is fully dependant on expensive e-auction and imported coal for operating these two units,” Shri Bagra added.

The mining lease deed shall be signed between the State Government and NALCO soon. Mining will be carried out in the allocated area after obtaining permission from the Forest Department under Forest Conservation Act and meeting other stipulations.