Nalco's coal crisis solved

The government has found a solution to the public sector aluminium company Nalco's current coal crisis.

The coal ministry, in consultation with railways, Nalco and coal companies has taken a decision to provide coal to Nalco from other coal companies and sources to ensure that there is no shortage of coal as against the linked quantity allocated to Nalco.

The coal ministry has clarified that Mahanadi Coalfields Ltd (MCL) supplies 14,000 tonnes of coal per day to Nalco's captive power plants in Angul on normative basis.

However, due to adverse mining conditions in the linked mines as well as evacuation problem in merry-go-round (MGR), there has been a shortfall in supply from the linked mine.

The shortfall was being met from other mines of MCL using Indian railways wagons. However, due to unavailability of railway wagons for supply of coal from other MCL mines in Talcher area, there has been lesser supply.

Nalco had recently said that if its acute coal crisis continued unabated, then it might have to lay off employees, which made the ministry of mines to seek the prime minister's intervention on ensuring adequate supply of coal for the company.

Acute paucity of coal has already compelled the Orissa-based Nalco to close down two of its captive power plants as coal supply from the Mahanadi Coalfields Limited (MCL) has dwindled to around 9,000 tonnes from 15,000 tonnes a day.