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A Breather for NALCO, Two Coal Blocks Allocated to the Company

News

In a major relief for aluminium major Nalco, the Centre today allocated Utkal D and E coal blocks in favour the company, which has already set up a 4.6 lakh tonne smelter and 1,200 MW Captive Power Plant in Odisha's Angul district. 

Source: ET

 

SNP Insight

This may give a major relief to NALCO, when the company is battling with falling metal price and demand. The company is also planning to invest nearly 30,000 corers in Odisha in coming years. So, looking at these developments the allocation of coal blocks is a welcome move by the government. This may ensure the availability of fuel for captive power operation of the company, which may increase their production efficiency to cater country’s future Aluminum demand. Also this may help the company to win investor confidence for future projects.

Source: SNP Infra Research