Bhubaneswar, Sept. 26: The state government today indicated that it would shortly recommend the Patangi bauxite mines in favour of Navaratna public sector unit National Aluminium Company Limited (Nalco).

The move followed the submission of a renewed corporate social responsibility (CSR) proposal by Nalco to the state government.

Located in Koraput district, the Patangi bauxite mines has a deposit of 75 million tonnes and is crucial to the expansion of Nalco's refinery as well as its smelter plant in the state. Though the Centre had already cleared the bauxite mines in favour of Nalco, the state government was dilly-dallying over the issue for the last three years. The company is now operating its plant by procuring bauxite from the Panchpatmali mines, which it is running on a temporary lease.

Steel and mines minister Prafulla Mallick said: "We have already decided on recommending the mines in favour of Nalco. We will also go through the CSR plan submitted by the company. Even the chief minister has asked Nalco to invest more in the CSR sector for the overall development of the state."

Nalco chairman-cum-managing director T.K. Chand said: "We submitted the CSR plan to the state government today. The plan envisages an additional investment of Rs 300 crore over and above the normal investment of two per cent of the profit following stipulated guidelines."

Earlier this month, Chand had met chief minister Naveen Patnaik to discuss the issue at the state secretariat.

According to the plan, the money will be invested mainly in the plant side area and in the mining belt. "Once we get the Patangi mines, we will go head with putting up a refinery at Damanjodi with an investment of Rs 6,000 crore," said Chand who addressed the company's annual news conference here today.

However, Chand made it clear that Nalco would not supply any bauxite to Vedanta's alumina plant at Lanjigarh in Kalahandi district, which is facing a tough time owing to a shortage of raw materials.

"Under the Mines and Minerals Development and Regulation Act, we are bound by laws not to give bauxite to any one and to use it for captive purposes only," he said, adding that the company would invest around Rs 35,000 crore in the state to set up a smelter plant, power plant and to develop the Utkal D and E coal blocks that were allotted to the company recently.

New investments

The state government's single window clearance authority chaired by chief secretary Gokul Chandra Pati today gave its nod to investment proposals worth Rs 1,542 crore.