
The National Aluminium Company Limited (Nalco), a Navratna CPSE having integrated and diversified operations in mining, metal and power under the Ministry of Mines, Government of India have received two more years’ extension of bridge coal linkage for its captive power plant as recommended by the Standing Linkage Committee of the Ministry of Coal.

The extension up to 31st March 2023 for the bridge linkage of coal is recommended examining slowdown in production from Nalco’s captive coal blocks Utkal-D and Utkal-E.

The Coal Ministry said: “In view of the recommendation of the administrative ministry (Ministry of Mines) and keeping in view the production schedule from Utkal-D coal mine, the standing linkage committee (long term) recommended extension of bridge linkage to Nalco’s Unit 9 and 10 (120 MW each) up to March 31, 2023.”
NALCO had requested the Coal Ministry in November 2020 for an extension of bridge linkage to the units for a further period of three years beginning April 2021.
As per the company sources: “The company had been allotted Utkal-D and E coal blocks, having a reserve of more than 200 million tonnes of coal, near its captive power plant in Angul district on 2nd May 2016 for Units 9 and 10 and proposed Unit 11 and Unit 12, which are 250 MW each. Though the scheduled date of operation of coal mines was January 2020, it could not stick to the commencement plan for the allotted blocks due to factors beyond its control.”
On 12th November 2021, Nalco submitted a revised plan to the Coal Ministry due to delay in obtaining approval of the mining plan for the two blocks, finalisation of lease boundary of Utkal-D, forest clearance of safety zone of Utkal-D and delay in acquisition of land for Utkal-E.
However, the mining ministry had also requested to consider the proposal of Nalco to pursue with bridge linkage coal of 9.8 lakh MT per annum, which is 75% of the annual requirement of 11.9 lakh tonne, to the Units 9 and 10 for another period of three years till Utkal-D coal block reaches near its rated capacity.
The Standing Linkage Committee lately recommended a two-year extension of bridge linkage on Nalco’s commitment to initiate production of around 5 lakh tonne from Utkal-D coal block in December 2022 and revamp the rated production capacity to around 20 lakh tonne by 2024.
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