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Government update on production losses in NALCO due to coal shortage
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Wednesday, 14 Dec 2011
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National Aluminum Company Limited has informed that the following losses were incurred for a short period by the company due to shortage of coal during the financial year 2011 to 2012:

Loss in Production (in Metric Tonnes)Value
Alumina22,97022.71
Aluminum15,90022.07


(INR in crore)

The primary reasons for production losses in view of power crisis due to short supply of coal are as under:
1. Prolonged shut down of C3 conveyer, a coal conveying system from mines to silo at Mahanadi Coalfields Limited Bharatpur instead of scheduled 45 days.
2. Unprecedented heavy rains during August to September 2011 at Talcher and IB areas.
3. Supply of less scheduled linkage coal in Q2 (22 %).
4. Supply of wet, slurry and re handled coal from MCL in respect of e auction coal as well as linkage coal during monsoon.
5. Shutdown of surge bunker of MCL for maintenance from September 10th 15th 2011.
6. Frequent obstruction by villagers to the Merry Go Round rake movement by squatting on the MGR track.
7. Inconsistent allotment of rakes for e auction coal by Railways.
8. Inconsistent supply of washed coal ordered on private parties.

Ministry of Mines has been interacting with Ministry of Coal for augmenting coal supply to NALCO and with Ministry of Railways for giving priority to allotment of rakes for supply of coal to the production units of the Company. NALCO is also procuring coal from other sources for sustenance of pot lines.

NALCO has already completed its Phase II expansion project resulting in augmentation of production capacities of alumina refinery from 1.575 million tonnes per year to 2.1 million tonnes per year and aluminum smelter from 0.345 million tonnes per year to 0.46 million tonnes per year.

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