Rush on Vedanta, not Nalco

Bhubaneswar, Dec. 1: The Naveen Patnaik government appears to have overlooked the National Aluminium Company Limited （Nalco） in its hurry to hunt for alternative mines for Vedanta Alumina.

The state government has been scouting for mines for Vedanta ever since the Union environment ministry nixed the company’s plans to mine bauxite from Niyamgiri. The issue had brought Rahul Gandhi to Niyamgiri, where he had proclaimed himself a soldier for tribals.

However, the Naveen government has not shown the same urgency in pursuing Nalco’s mining proposals.

A sources said Nalco had applied for the Gandhamardan mines in 2004. The other applicants for these mines included Vedanta, the Industrial Development Corporation （IDC） and the Orissa Mining Corporation （OMC）.

But, the sources said, there has been no visible initiative on part of the state government on this front so far as Nalco, a navaratna company, was concerned.

Nalco is willing to enter into a joint venture with OMC and has plans to set up an alumina plant in Balangir.

The sources said Nalco’s expansion plans in alumina and power were stalled as the state government did not pursue the company’s case with vigour. At present, the company is procuring bauxite from Panchpatmali in Koraput district.

Out of its 310-million tonne reserve, Nalco has already excavated 120 million tonnes in the past 25 years. “The rest will be exhausted in the coming 10 to 15 years. We badly need other mines to sustain our plant. Mines are also required to continue our expansion,” the source said.

According to the sources, Nalco has also applied for Patangi and Sashu Bohu Mali mines. “The state government had, in principle, approved the Patangi mines in favour of Nalco. However, it had attached a few conditions which a public sector undertaking could not fulfil,” an official said.

Nalco applied for the Sashu Bohu Mali mines in 2007. But no steps have yet been taken to allot the mines to the company. Vedanta has also applied for the same mines.

The navaratna company’s proposal to set up a smelter plant at Jharsuguda was also stalled by the state government on environment grounds.

The state government had maintained that the high pollution level in the area would go up if a new smelter came up. Two private players — Vedanta and Aditya Alumina — already have their smelters in this belt.

State steel and mines minister Raghunath Mohanty said he was unaware of any delay on the part of the government. “I will look into the problem. We will continue to encourage public sector companies,” Mohanty said.