Nalco headquarters in Bhubaneswar. Telegraph picture

Bhubaneswar, Sept. 18: The state government today refused to commit coal block linkages to the upcoming industries while clearing projects to the tune of Rs 26,000 crore.

The proposals included a captive power plant of the National Aluminium Company (Nalco), a coal-based ammonia plant and a gas-based power plant.

After the state government landed in a soup for its recommendations of coal blocks to private companies, it seems to have taken care while clearing the proposals. All the proposals were “thoroughly scrutinised and the issue of giving coal linkages was not touched upon”, sources said.

So far, three major companies — Jindal Steel and Power Limited (JSPL), Bhusan Energy Limited, a group of Bhusan Steel, and Navbharat Power Limited — are embroiled in the controversy over the coal block allotment. The state’s efforts to generate more power through private firms have received a jolt following the alleged coalgate scam.

Among the proposals cleared today, the state government has approved Nalco’s 0.5MTPA smelter plant and a captive power plant that are going to be set up at Sundergarh for Rs 16,345 crore. The government will provide 50 cusec water from the Hirakud reservoir and 2,500 acres. The captive power plant will generate 1,260MW.

“The plant will come up near Basundhara coal block and coal block linkages for Nalco will be taken up later with the state government,” said a senior Nalco official.

The state also gave its nod to the Chennai-based Bharat Coal and Chemical Ltd’s proposal to set up a coal-based ammonia plant. The plant will come up in Paradip for Rs 1,575 crore. As per the proposal, the plant will produce 3,46,500MT per annum ammonia from coal.

The plant will provide ammonia to Paradip Phosphate Limited (PPL) and Indian Farmers Fertiliser Co-operative (Iffco).

“The company will arrange coal on its own,” said chief secretary Bijay Patnaik. Water will be supplied to the plant from one of the tributaries of the Mahanadi river system from Bhutmundai on the outskirts of the port town.

The Bhusan Steel, which is in news after the Inter-Ministerial Group (IMG) on coal cancelled its Patrapada coal block allotment, today seemed to have got some sort of respite after the government cleared its proposal to set up a 12MTPA iron beneficiation and 4MTPA pelletisation plants in Keonjhar. The slurry will through a pipe from its company’s existing steel plant at Meramundali in Angul to Jalapasi in Kenojhar. The company will invest Rs 1,208 crore in the project. Around 10 cusec of water will be supplied from the Mahanadi.

Andhra Pradesh-based VBC Group, under the banner of the Odisha Power Consortium, will set up the gas combined cycle power plant in Kendrapara. It will produce 750MW power. The proposed investment will be Rs 2,876 crore. The state government will provide 150 acres and water will be supplied from the Chitrotpala and Luna rivers.

Uttam Galva Steel based at Palasapanga in Kenojhar will set up a hard roll coil 2MTPA (HR coil) at Kalinga Nagar in Jajpur. The iron ore will produce steel coil and Rs 4,000 crore will be invested. The state also gave its nod to the Sonepur Energy to set up an energy academy in Ganjam. The academy will produce human resources suitable for the oil sector. “It will be the first of its kind in Odisha,” said an official.