Bhubaneswar: The National Aluminium Company Limited Saturday said it has been granted the mining lease of Utkal-D coal block by Odisha government.
The Navratna CPSE, one of the leading producer of alumina and aluminium in the country, has been granted the mining lease by the state government through a notification issued April 16, by the Steel and Mines department, it said.
As per the notification, the mining lease of Utkal-D coal block is over an area of 301.28 hectares in villages Kosala, Nandichood, Similisahi and Raijharan under Chendipada Tahasil of Angul District, a Nalco release said.
Upon execution of the mining lease deed, NALCO is considering to open Utkal-D coal block in the financial year 2020-21. The initial capacity of Utkal-D coal block is 2 million tonne per year with a total mineable reserve of 101.68 million tonne.
Expressing confidence that the operationalization of Utkal-D coal block will contribute significantly to the bottom line of NALCO, Sridhar Patra, CMD, NALCO, has thanked the Odisha government and the Centre for sanction of mining lease of Utkal-D.
“For a power intensive industry like aluminium, it is very essential to have a secure supply of coal. I hope with the mining lease in place, it will usher in a new era of development for the company”, he said.
The Utkal-D coal block was allocated to NALCO in May 2016. NALCO is also in the process of obtaining mining lease grant of Utkal- E coal block which has been allocated to NALCO along with Utkal-D coal block in May 2016.
Upon Operation of both Utkal-D and E, NALCO will be able to produce 4 million tonne of coal per year. The lease for Utkal-D has been granted for a period of 30 years, it said.
(PTI)