National Aluminium Company (NALCO), a manufacturer and distributor of aluminum products, has been allocated Utkal D and E Coal Blocks, in Angul district of Odisha, where the company's 4.6 lakh tonne aluminium smelter and 1200 MW captive power plant are located.

T.K. Chand. CMD, NALCO, said "The company's smooth operation and expansion plans hinged on the allocation of these blocks. With this, NALCO's captive resources add 200 million tonnes of coal, which will see the company through the next three decades and more."

Thanking the Ministry of Mines, Chand said, "The government has appreciated the dire needs of NALCO and decided to allocate the coal blocks in favour of the company which will enable the company to meet its expansion plans.

Utkal E coal block was allotted to NALCO by government of India in 2004. The company had spent Rs. 1.26 billion for this block including Rs. 980 million towards compensation against land acquisition.

The company had also spent considerably on infrastructural facilities and various CVR activities in the area. However, the cancellation of allocation of Utkal E Coal Block, following Supreme Court's order to de-allocate 204 coal blocks across the country, came as a setback to the company.

NALCO was pursuing with government of India or re-allocation of coal block under the allocation route, as the end-use investment had already been made.

Shares of the company declined Rs 0.95, or 2.55%, to trade at Rs 36.30. The total volume of shares traded was 331,877 at the BSE (3.07 p.m., Wednesday).