The operation of the Utkal-E captive coal block of the Nalco at Chhendipada block of Angul district is unlikely to become operational by December 2014 as stated in its Annual Report for the last fiscal due to the delay in land acquisition, forest clearance and construction of an R&R colony.
While the Nalco has incurred heavy losses due to nonoperationalisation of this captive coal block, the delay has also led to a 21-per cent cost escalation for the project to Rs 338 crore from the previous estimates of Rs 280 crore.
The Nalco has been getting irregular coal supplies from the Mahanadi Coalfields, leading to its increased dependence on imported coal, which is very expensive.
The coal block, estimated to hold a 67.49-million tonne reserve, is integral to the Nalco's plans as the pibloc-sector company has already commissioned two out of four units of 120 MW each of its captive power plant and is running them by procuring coal either through e-auction or imports.
Although the Nalco has captive bauxite mines, the cost of aluminum production remains very high on account of high power costs.
The company has failed to operate its captive coal block even after 10 long years for various reasons.
“Even some Nalco officials, who have purchased lands in advance at the proposed coalmine site, have sabotaged the land acquisition process to get more compensation money,” alleged Advocate CR Sahu, secretary of Citizens’ Action Forum.
The affected people of Korada, Nandichhod, Kolajhari jungle and Gopinathapur Jungle are demanding at least Rs 17 lakh compensation per acre of land.
However the Nalco has agreed to give Rs 11 lakh. The affected people have also filed a case in the High Court to get more compensation.
Forest clearance has not been obtained for 28 hectares of forestland yet. Even land has not been finalised to construct the proposed R&R colony for the 543 displaced families. People have objected to an R&R site near Kosala.