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Regular-article-logo Monday, 28 April 2025

BJD protests but sits on Nalco lifeline

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SUBHASHISH MOHANTY Published 25.09.12, 12:00 AM

Bhubaneswar, Sept. 24: The BJD’s lip service to the cause of the National Aluminium Company has been exposed yet again.

While the party today launched its campaign against the Centre’s decision to disinvest its share from National Aluminium Company (Nalco), the BJD-led government has delayed making a final recommendation of mining lease in favour of the public sector company. It has put some strong riders for making recommendations for the bauxite-mining lease for Nalco.

The BJD is crying hoarse against the Centre’s decision to bring down its equity in the company to 75 per cent from 87.15 per cent. Today, the party organised a protest rally and meeting at Nalco’s Damanjodi plant in Koraput district against the proposed disinvestments. The party had sent four MLAs, local MPs and other senior leaders to make the meeting successful.

On the other hand, senior Nalco officials today met chief secretary Bijay Patnaik and asked the government to recommend mining lease for the Patangi mines to the Centre in favour of the company without putting any conditions. Apart from spending 3 per cent as part of corporate social responsibility, the state government would like Nalco to set up a medical college in the state.

“Though the Odisha government has come out to protest against disinvestment proposals, it was equally responsible for putting Nalco in a tight spot by laying down stiff conditions in exchange of recommending its name for the allocation of bauxite mines,” said a Nalco official.

However, steel and mines secretary Rajesh Verma said: “We had a meeting with Nalco officials. A breakthrough has been made.”

The Navratna company is gasping for breath as its mining lease for the bauxite reserve at south block of Panchpatamali in Koraput district has expired and the central and north block is going to expire on November 16. Of the 310 million tonnes (MT) of bauxite reserve, it has already consumed 110MT.

“The company is going for plant expansion. But, it needs assured supply of bauxite linkage. Otherwise, it will face a problem. The Patangi mines will certainly help in this regard,” said an official.

The Patangi mines with a reserve of 80 million tonnes are crucial for Nalco’s expansion programme both at Damanjodi and Angul. The proposed Patangi mines can assure supply of bauxite to the company for a period of 25 years.

Though the mines have already been reserved for Nalco since 2007, the government is yet to make a final recommendation for a mining lease in favour of the company.

The company has been asked to invest 2 per cent of its profit on corporate social responsibility and 1 per cent on peripheral development. The state government has also asked Nalco to set up a medical college in Koraput.

“Such demands has put Nalco on the backfoot. When the state government points out that Nalco is associated with the pride of Odisha, it should not make unreasonable demands before Nalco,” another official said. It has not yet got land for its second smelter plant in Sundergarh district. The state is also yet to take steps to settle people living in its allotted coal block in Angul district.

While Nalco is struggling to get mining lease from the state, the BJD has decided to organise yet another rally and protest meet at the plant in Angul on September 26 and the company’s headquarters in Bhubaneswar on September 28 against the Centre.

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