 "Nalco may soon get composite licence over Pottangi mines")
"Nalco's case for a composite licence over Pottangi mines is now under scrutiny at the highest level. The state government after considering all aspects will seek approval from the Union mines ministry for grant of composite licence to Nalco," said a government official.
The Pottangi mines in Koraput district with deposits of 75 million tonne bauxite has already been reserved in favour of the PSU.
Nalco authorities could not be reached for comments on the matter.
The state government has decided to recommend Nalco's case for composite licence after the aluminium major committed to fulfil its conditions.
According to the conditions, peripheral development will be carried out by Nalco Foundation, the CSR (corporate social responsibility) arm of the aluminium major, with a representative from the state government as member. A five-year perspective plan will be drawn up for the peripheral areas.
The minimum contribution to the foundation will be two per cent of profit after tax (PAT) for Nalco or Rs 20 crore, whichever is higher. The amount would be over and above the one per cent of the company's PAT being spent through the Rehabilitation and Periphery Development Advisory Committee (RPDAC). These stipulations have been laid down by the steel & mines department in addition to the benefits likely to be accrued to the locals because of the amended Mines and Minerals (Development & Regulation) Act, 2015.
Presently, Panchpatmalli hills with reserves of around 300 million tonne in Koraput district is the only bauxite deposit under Nalco's leasehold.
Nalco posted 106 per cent jump in its net profit for the year ended March 31, 2015 at Rs 1,322 crore as against Rs 642 crore achieved by the company in the year ago fiscal.
During 2014-15, the navratna company achieved its highest ever gross turnover of Rs 7,771 crore, 10.63 per cent higher than Rs 7,024 crore recorded in 2013-14. Nalco's previous best turnover was Rs 7,247 crore which it achieved in 2012-13.
Nalco also logged an export turnover of Rs 3,307 crore in 2014-15.
According to the performance MoU (memorandum of understanding) signed with the Union mines ministry, Nalco targets annual turnover of Rs 25,000 crore by 2020. It hopes to achieve aluminium production of 1.7 million tonne and alumina production of four million tonne by then.
Nalco also intends to diversify beyond aluminium by setting up at least two diversified projects by 2016. It plans at least one coal based power plant of 1,000 Mw capacity by 2016.