The Hindu Business Line : Coal crisis: Nalco may lay off employees

New Delhi, Aug. 2 Public sector enterprise National Aluminium Company Ltd (Nalco) has said that if the coal crisis continues in its plants then it could be forced to lay off employees.

Acute scarcity of coal has compelled the Orissa-based company to close down two units of its 960 mega watt (MW) captive power plants as coal supply from the Mahanadi Coalfields Ltd has dwindled to around 9,000 tonnes from 13,000 tonnes per day.

In a letter written to the Mines Ministry, Mr C.R. Pradhan, Chairman and Managing Director, Nalco, said: “The company’s performance could take a serious hit owing to the crisis arising out of the present situation. This may also lead to laying off of employees.”

Power Plant

According to Ministry sources, the shortage is because the conveyer belt which supplies the coal from the mine to the loading point has got truncated. “Nalco has around 1,200 employees in its captive power plants who have been rendered idle following closure of the plants. So they might get affected if action is not taken immediately,” the source pointed out. The letter from the company has also forced the Union Minister for Mines, Mr Sis Ram Ola, write to the Prime Minister to intervene and ensure adequate supply of coal.

The Minister also drew the Union Railway Minister, Mr Lalu Prasad’s attention to the fact that shortage of rakes was crippling coal supply to Nalco’s power plant and suggested that additional rakes be made available to enable the PSU to ferry coal from the pithead to the power plants.

Mr Pradhan in his letter to Mr Ola also said, “Unless the Railways help us immediately by allotting one-and-a-half rakes per day we will have no other option than closing one of our three operating potlines in the smelter plant.” Sources, however, pointed out that this was being met to a certain extent as the Railways is supplying around 3,000 tonnes per day.

Further, Nalco is looking at importing a sizeable amount to meet its requirement. “Around 15,000 tonnes of coal has been imported and a further 1,20,000 tonnes is in the pipeline. This will be blended in 1:10 ratio (one portion of imported coal mixed with 10 portions of domestic coal),” the official said.

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