State-run National Aluminium Company (Nalco) has sought an extension till March 2025 for the bridge linkage for Utkal D and Utkal E coal mines owing to delays in commencing production at the said blocks.

The issue will come up at the meeting of the Coal Ministry’s Standing Linkage Committee (Long Term), which is scheduled for Friday (February 17).

The aluminium manufacturer informed that it is facing delays in starting production from the allotted coal mines and has not been able to stick to the commencement schedule due to factors beyond its control.

The delays include obtaining forest and environmental clearances, land acquisition, revising boundary coordinates, besides the delays owing to the Covid pandemic in the last three years.

In September 2016, the SLC (LT) had granted bridge linkages from Coal India (CIL) to Nalco’s Unit 9 and 10 (120 MW each) captive power plants (CPP) based on allotment of Utkal D & Utkal E coal blocks.

In December 2018, Nalco got the linkage extended up to up to March 2021 or from the actual date of start of production, whichever is earlier, and was again extended up to March 2023.

Nalco obtained the mine opening permission for the Utkal D coal mine in May 2021. Furthermore, the approved mine plan for Utkal D and E coal blocks were obtained in February 2022, however, coal production has not commenced due to land and other issues.

One of India’s largest integrated Bauxite-Alumina-Aluminium-Power complex, Nalco has been operating its captive Panchpatmali bauxite mine with 68.25-lakh tonnes per annum for the pit head 21 ltpa (normative capacity) alumina refinery at Damanjodi in Koraput district of Odisha.

Besides, it has an aluminium smelter with a capacity of 4.60 ltpa and a 1,200 MW CPP at Angul in Odisha. The central government holds 51.28 per cent stake in the company.