The Orissa High Court on Monday directed the Ministries of Power, Coal, Mines and the Chairman of the Railway Board to resolve the crisis of coal supply to the National Aluminum Company in 24 hours.
The Nalco Officers’ Association had moved the High Court stating that coal supply from the Mahanadi Coalfields Limited (MCL) had come down by 60% of the contracted demand. NALCO, the country’s biggest public sector aluminum manufacturer, was sourcing required coal by purchasing it through e-auction. The association urged that the MCL should be asked to restore the full supply of coal as agreed upon between the parties so that the smelter plant did not shut down.
The matter came up for hearing before a Division Bench comprising of Chief Justice S. Muralidhar and Judge R. K. Pattanaik.
The association submitted that NALCO was entirely dependent on the MCL for coal to keep its Captive Power Plant (CPP) and the smelter plant operational.
Export orders
Quoting Pami Rath, counsel for the Nalco, the High Court, in its judgment, said, “if the CPP does not generate enough power to keep the smelter plant going, it will have to shut down. The NALCO has export orders which have to be met and which have potential for generating huge revenue for the country.”
“The same crisis faces NALCO’s Alumina refinery at Damanjodi. It is stated that right now, the stocks available with the NALCO can keep its units going only for three more days,” the judgment says.
Debaraj Mohanty, counsel for the MCL, submitted that the public sector coal company should not be compelled to supply only to NALCO through rakes as the firm was required to supply coal to power plants as well.
“NALCO should be asked to lift coal as per the reduced agreed quantity by other modes — by road and the ‘Merry Go Round’ (MGR), which is an exclusive dedicated rail line connecting the coalmine pit head with NALCO’s smelter plant,” Mr. Mohanty submitted.
However, counsel for the officers’ association and NALCO informed the court that the MGR was not fully functional and transporting by road would be both cumbersome and hazardous
‘Sit together to end row’
“Since the essential dispute concerns two Central PSUs — MCL and NALCO, and also involves the role of the Railways which is the third Central government undertaking in the picture, the court considers it appropriate to direct that the Secretary, Power, the Secretary, Coal, the Secretary, Mines, and the Chairman, Railway Board, will sit together in virtual or hybrid mode with the Managing Directors of the MCL and NALCO not later than 6 p.m. (April 26) to find the way for resolving the crises to ensure that the smelter plant of NALCO at Angul and its Alumina refinery at Damanjodi are not pushed to the brink of a shutdown,” the Division Bench ordered. The High Court had fixed next day of hearing on April 27.
