Orissa High Court backs arrangement for solving Nalco coal crisis

CUTTACK: The Orissa High Court on Wednesday was informed about the arrangement agreed through mediation to resolve the dispute raised over limiting of coal supply by Mahanadi Coalfield Limited (MCL) to National Aluminium Company (Nalco)’s smelter plant at Angul.

The arrangement was agreed at a meeting of the secretaries of Union ministries of coal, power and mines, Chairman Railway Board,  CMDs of Mahanadi Coalfields (MCL) and Nalco on Tuesday.As per the decision, Railways will maintain the supply of 58-60 rakes per day to Talcher coal field area and MCL will ensure on an average 0.8 rakes per day (one railway rack capacity is 3890 tons) for Nalco’s refinery at Damanjodi.

The coal requirement of Nalco’s captive power plant at Angul would be met by a combination of supply mostly through MGR (a dedicated rail line connecting the pithead with the smelter plant) system and road transport. 

As per the agreement, 5,000 to 6,000 tonne per day will be supplied through existing MGR system and another 5,000 to 6,000 tonne per day through road transport. Another 1,000 to 2,000 tonne per day will be supplied by use of railway sidings. The MGR system will be strengthened/repaired by MCL and Nalco so as to suitably increase the supply further.

The court had on Monday issued orders for the mediation. The arrangement was communicated to the court along with a copy of the minutes of the meeting by the Assistant Solicitor General of India, Prasanna Kumar Parhi.

Taking note of it the division bench of Chief Justice S Muralidhar and Justice RK Pattanaik said, “In order to ensure that the solution is implemented immediately, the court considers it appropriate not to continue with the interim order already passed and to await the result of implementation of the arrangement.”

The bench said the arrangement agreed upon to be considered as “an emergency mission” that has been thought and agreed upon by several of the stakeholders concerned and the large amount of coal required to be transported as part of it should not face any resistance from the district administration.