With two major Central public sector undertakings (CPSU) facing tough time in Odisha, Prime Minister Narendra Modi has sought immediate intervention of Chief Minister Naveen Patnaik to help them overcome the roadblocks they are encountering.
Modi recently in a letter to Patnaik has stated that the National Aluminum Company limited (Nalco) and the Mahanadi Coal Fields limited (MCl) need intervention at the Chief Minister’s level. Modi, who is stressing the need to enhance the capacity of the government machinery for implementation of major projects, has sought substantial and timely support from the State Government.
Pointing out the issue of granting a mining lease of the Pottangi bauxite deposit to the Nalco, the Prime Minister wanted the State Government to do the needful for expediting the process. While the Pottangi mine was reserved for the Nalco by the Union Government since 2007, the State Government accorded in-principle approval for the reservation of the mine in 2012. However, the State Government while providing the in-principle approval had stipulated certain conditions to be met by the aluminium major.
According to new provisions under the MMDR Amendment Act 2015, the State Government can now grant lease without waiting for a prior approval of the Union Government, said an official source. Availability of the Pottangi mine is essential for expansion of the Nalco’s alumina refinery, which involves an investment of Rs5,540 crore. Similarly, enhancement of coal production from both Ib Valley and Talcher by the MCl is needed as the CPSU has targeted to achieve 250 MTPA by 2019.
Coal projects like Hingula, Bhubaneswari and others need State support as the MCl is facing rough weather due to strong resistance of locals and displaced persons. local people who are up in arms against the MCl accuse it of not doing enough in their areas for social development and improvement of standard of education, said a State official.
Moreover, construction work for four-laning of the coal corridor for evacuation of coal in the Ib Valley is facing logjam, said sources. Construction of this 54-km rail line assumes considerable economic importance as a rail corridor from Bankbahal to Bhedabahal is critical for coal evacuation, said the sources.
Interestingly, both Nalco and MCl have soured relationship with the State Government as they withdrew their support to the Aahar scheme introduced by the latter.