Faced with crisis on several fronts, state-run National Aluminium Company's (Nalco) margins are also being impacted due to shortage of coal from CIL for captive power generation, the Rajya Sabha was informed today.
"Nalco is presently facing crisis. There are 10 units of 120 MW each in captive power plant in operation. The linkage coal received from Mahanadi Coalfields is short by 2.77 lakh tonne. The shortage is partly met by procuring from other sources. These being expensive are affecting the margins adversely," Mines Minister Dinsha Patel said in a written reply.
Patel said Mines Secretary has taken up the matter with the Coal Ministry and the Railways.
Apart from battling on coal front, the aluminium producer has also been hit by strike by contract workers since November 16 who are demanding higher wages despite the firm paying them 111% higher than the applicable statutory rate, Patel said.
"The company is encountering an illegal strike, Secretary Mines has requested help from Chief Secretary, Odisha. Chairman cum Managing Director Nalco has also approached Secretary, Ministry of Labour and Employment for necessary help," he said.
Citing other impediments on the way of the firm's progress, Patel said Utkal E block with 67.4 million tonne reserves alloted by the Coal Ministry in 2004 could not be developed so far for want of land acquisition by state government.
Also, investment to tune of Rs 6,500 crore for firm's third phase expansion has been put on hold on account for difficulties in acquiring mining lease for Pottangi bauxite deposit in Odisha with reserves of 75 million tonne.
"As with implementation of third phase expansion, existing reserves will last for 14 years only Pottangi bauxite reserves will help for enhancing the life of refinery by another seven years i.e. up to 2032," Patel added.
Nalco owns and operates a large integrated Mines-Alumina- Aluminium Complex in the country with multi-locational operations including Mines and Alumina Refinery at Damanjodi, Orissa, aluminium smelter and Captive Power Plant at Angul, Orissa and Port Facilities at Visakhapatnam, Andhra Pradesh.
The Orissa-headquartered company had posted a profit after tax of Rs 1,069 crore in 2010-11. Its sales revenue grew 18% to Rs 5,959 crore during the last fiscal.
