Mahanadi Coalfields Ltd, a subsidiary of Coal India Ltd, is seeking government approval to invest Rs 34,072 crores in an integrated greenfield aluminium project in Odisha comprising a two-million-tonne alumina refinery, a 0.5-million-tonne aluminium smelter and a 1,400-megawatt captive power plant.

The planned investment in aluminium complex includes acquiring a bauxite block at Sijimali or Kutrumali in Odisha to mine six million tonnes of bauxite per annum. Initially, the end-product would be primary aluminium ingots with value-added products introduced later.

Since MCL plans to pump in Rs 10,222 crore as equity considering a debt-equity mix of 70:30 for the project, it has sought an exemption from the investment limit fixed by the Department of Public Enterprises which stipulates that a miniratna can only invest 15 percent of its net worth in a project - limited to Rs 500 crore, with an overall investment cap of 30 percent of net worth in all projects put together.

With net worth after dividend estimated at Rs 9,716 crore, 30 percent would be a paltry Rs 2,914.8 crore as permissible equity. Crossing this limit requires the approval of Department of Investment and Public Asset Management (DIPAM) which administers all matters pertaining to capital structure or net worth of a central public sector undertaking, said an official.

Initially, Coal India had planned a joint venture along with National Aluminium Corp. Ltd (NALCO), wherein MCL would hold 74 percent and NALCO the rest. However, the joint venture plan was dropped in August 2022 and the MCL board decided last January to form a special-purpose vehicle for the project complex.

MCL’s new venture comes amidst India’s commitment in COP-26 at Glasgow to make the country Net-Zero Carbon Emissions by 2070 after which Coal India decided to shift from its current core business of coal mining to embark on the process of diversification into non-fossil fuel areas to ensure a sustainable source of income from other businesses.

Since coal and alumina are the critical inputs in the production of aluminium, the project was a natural choice for forward integration, the official said.

Moreover, India’s demand for aluminium has grown at a CAGR of 10 percent in the last five years driven by strong growth of automobile, construction and power sectors. MCL’s feasibility study showed that domestic demand presented a vast opportunity to set up an aluminium smelter as there would be an expected demand-supply gap of about 2.25 million tonnes in 2030 by when the project would be up and running.

Also Read | <a href="https://www.wionews.com/india-news/through-the-lens-of-retd-naval-officer-celebrating-kaleidoscope-of-human-experiences-at-sea-and-beyond-it-626904">Through the lens of Retd Naval officer: Celebrating 'kaleidoscope of human experiences' at sea and beyond</a>

The project is also aimed at realizing the goal of ‘Atmanirbhar Bharat’ by encouraging domestic manufacturing, reducing import dependence, increasing exports with investment in backward area of the country. The entire complex is expected to generate an employment of 5,000 with direct employment pegged at 1,600.

Coal India is the world’s largest coal mining company and accounts for more than 80 percent of India’s coal production.

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Mahanadi Coalfields Ltd, a subsidiary of Coal India Ltd, is seeking government approval to invest Rs 34,072 crores in an integrated greenfield aluminium project in Odisha comprising a two-million-tonne alumina refinery, a 0.

Mahanadi Coalfields Ltd, a subsidiary of Coal India Ltd, is seeking government approval to invest Rs 34,072 crores in an integrated greenfield aluminium project in Odisha comprising a two-million-tonne alumina refinery, a 0.5-million-tonne aluminium smelter and a 1,400-megawatt captive power plant. The planned investment in aluminium complex includes acquiring a bauxite block at Sijimali or Kutrumali in Odisha to mine six million tonnes of bauxite per annum. Initially, the end-product would be primary aluminium ingots with value-added products introduced later. Since MCL plans to pump in Rs 10,222 crore as equity considering a debt-equity mix of 70:30 for the project, it has sought an exemption from the investment limit fixed by the Department of Public Enterprises which stipulates that a miniratna can only invest 15 percent of its net worth in a project - limited to Rs 500 crore, with an overall investment cap of 30 percent of net worth in all projects put together. With net worth after dividend estimated at Rs 9,716 crore, 30 percent would be a paltry Rs 2,914.8 crore as permissible equity. Crossing this limit requires the approval of Department of Investment and Public Asset Management (DIPAM) which administers all matters pertaining to capital structure or net worth of a central public sector undertaking, said an official. Initially, Coal India had planned a joint venture along with National Aluminium Corp. Ltd (NALCO), wherein MCL would hold 74 percent and NALCO the rest. However, the joint venture plan was dropped in August 2022 and the MCL board decided last January to form a special-purpose vehicle for the project complex. MCL’s new venture comes amidst India’s commitment in COP-26 at Glasgow to make the country Net-Zero Carbon Emissions by 2070 after which Coal India decided to shift from its current core business of coal mining to embark on the process of diversification into non-fossil fuel areas to ensure a sustainable source of income from other businesses. Since coal and alumina are the critical inputs in the production of aluminium, the project was a natural choice for forward integration, the official said. Moreover, India’s demand for aluminium has grown at a CAGR of 10 percent in the last five years driven by strong growth of automobile, construction and power sectors. MCL’s feasibility study showed that domestic demand presented a vast opportunity to set up an aluminium smelter as there would be an expected demand-supply gap of about 2.25 million tonnes in 2030 by when the project would be up and running. Also Read | Through the lens of Retd Naval officer: Celebrating 'kaleidoscope of human experiences' at sea and beyond The project is also aimed at realizing the goal of ‘Atmanirbhar Bharat’ by encouraging domestic manufacturing, reducing import dependence, increasing exports with investment in backward area of the country. The entire complex is expected to generate an employment of 5,000 with direct employment pegged at 1,600. Coal India is the world’s largest coal mining company and accounts for more than 80 percent of India’s coal production. You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE ×

Mahanadi Coalfields aluminium project to cost USD 4 billion: Seeks equity limit exemption

The death toll in Cuttack bus accident that took place on Tuesday near Jagatpur has increased to 12.

Union Minister Dharmendra Pradhan, who visited the accident spot to take stock of the situation, said, "The bus which met with an accident was coming from Talcher and plunged off the bridge on Mahanadi River in Cuttack. So far, 12 people have lost their lives."

The minister further said that many people were also injured in the accident and have been shifted to the hospital. Pradhan also visited the hospital to meet the injured people. "The administration is working on rescue and relief operation," he said.

Odisha Chief Minister Naveen Patnaik announced an ex-gratia of Rs 2 lakh to the next of kin of those who were killed in the mishap.

Expressing sorrow over the loss of lives in the accident, Patnaik said that free treatment would be provided to those who sustained injuries in the incident.

The bus carrying around 30 passengers fell off the Mahanadi Bridge after it hit a buffalo.

The death toll in Cuttack bus accident that took place on Tuesday near Jagatpur has increased to 12. Union Minister Dharmendra Pradhan, who visited the accident spot to take stock of the situation, said, "The bus which met with an accident was coming from Talcher and plunged off the bridge on Mahanadi River in Cuttack.

The death toll in Cuttack bus accident that took place on Tuesday near Jagatpur has increased to 12. Union Minister Dharmendra Pradhan, who visited the accident spot to take stock of the situation, said, "The bus which met with an accident was coming from Talcher and plunged off the bridge on Mahanadi River in Cuttack. So far, 12 people have lost their lives." The minister further said that many people were also injured in the accident and have been shifted to the hospital. Pradhan also visited the hospital to meet the injured people. "The administration is working on rescue and relief operation," he said. Odisha Chief Minister Naveen Patnaik announced an ex-gratia of Rs 2 lakh to the next of kin of those who were killed in the mishap. Expressing sorrow over the loss of lives in the accident, Patnaik said that free treatment would be provided to those who sustained injuries in the incident. The bus carrying around 30 passengers fell off the Mahanadi Bridge after it hit a buffalo.

Cuttack bus mishap: Death toll rises to 12

Union Cabinet has given its approval to the proposal for the setting up of the Mahanadi Water Disputes Tribunal.

The Tribunal will be set up under the provisions of the Inter-State River Disputes Act, 1956 at the request of the state of Odisha, one of the parties to the dispute.

The Tribunal will have to determine the water sharing arrangement among basin states of Odisha and Chattisgarh.

The tribunal will take its decisions based on certain parameters, which will include the overall availability of water in the complete Mahanadi basin; the contribution of each state to the Mahanadi basin and the present utilisation of water resources in each state along with potential for future development.

It is expected that the Tribunal will through its adjudication and it is expected that it will help bring to an end the long-standing dispute between the States of Odisha and Chattisgarh over the sharing of the water of the Mahanadi river.

According to the provisions of the Inter-State River Water Disputes (ISRWD), Act, 1956 the tribunal will have three members, including a Chairman and two other members, who will be nominated by the Chief Justice of India from amongst the judges of the Supreme Court or the High Courts.

The Tribunal will be required to submit its report and decision within a period of three years, which can be further extended for a period not exceeding more than two years due to unavoidable reasons.

It is expected that the Tribunal will through its adjudication and it is expected that it will help bring to an end the long-standing dispute between the States of Odisha and Chattisgarh over the sharing of the water of the Mahanadi river

Union Cabinet has given its approval to the proposal for the setting up of the Mahanadi Water Disputes Tribunal. The Tribunal will be set up under the provisions of the Inter-State River Disputes Act, 1956 at the request of the state of Odisha, one of the parties to the dispute. The Tribunal will have to determine the water sharing arrangement among basin states of Odisha and Chattisgarh. The tribunal will take its decisions based on certain parameters, which will include the overall availability of water in the complete Mahanadi basin; the contribution of each state to the Mahanadi basin and the present utilisation of water resources in each state along with potential for future development. It is expected that the Tribunal will through its adjudication and it is expected that it will help bring to an end the long-standing dispute between the States of Odisha and Chattisgarh over the sharing of the water of the Mahanadi river. According to the provisions of the Inter-State River Water Disputes (ISRWD), Act, 1956 the tribunal will have three members, including a Chairman and two other members, who will be nominated by the Chief Justice of India from amongst the judges of the Supreme Court or the High Courts. The Tribunal will be required to submit its report and decision within a period of three years, which can be further extended for a period not exceeding more than two years due to unavoidable reasons.

Cabinet approves Mahanadi Water Disputes Tribunal

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