Nalco to be allowed mining at Panchapatmali

With the 30-year lease of the Panchapatmali bauxite mines allotted to the National Aluminium Company (Nalco) due to expire on November 16 which is likely to force closure of its refinery at Damanjodi, the State Government has decided to allow continuation of the lease of bauxite mines for the public-sector aluminium major.

Principal Secretary of Steel & Mines Rajesh Verma on Wednesday said, “Forest clearance for the mining lease of Nalco will expire on November 16. While the company authorities are trying hard to get a temporary work permit, we will allow the lease to continue operation under deemed extension.”

“Since Nalco has already applied for renewal of the mining lease, it will not be a problem for us to give permission,” he added.

Regarding extending a lease of mining of the Potangi bauxite deposit in Koraput district to Nalco, Verma said, “There are no issues on it. We are only waiting for the Nalco Board of Directors’ resolution for its corporate social responsibility (CSR) and peripheral development of the Potangi area.”

It may be mentioned that the office-bearers of the Nalco Suraksha Samiti, apprehending that the fate of the Navratna PSU would go the Vedanta way, had urged Chief Minister Naveen Patnaik to expedite renewal of the Panchapatmali mining lease and stop divestment of the company’s shares.

However, there is a silver lining in Nalco’s fate with the decision of the Central Government to postpone the proposed 12.15-per cent divestment as announced by Union Minister of Mines Dinshaw Patel in New Delhi on Wednesday. The Centre had planned to collect about `30,000 crore through disinvestment of Nalco’s shares.