Orissa government today decided to ask the Nalco to spend at least Rs 10 crore per annum towards periphery development activities in order to avail the bauxite reserve at Potangi in Koraput district, official sources said.
“We have decided to recommend Nalco’s name for the bauxite mines at Potangi. However, the company has to spend at least Rs 10 crore towards the corporate social responsibility in the local area,” Chief Secretary B K Patnaik told reporters after a meeting.
The company has to undertake different welfare and developmental activities in and around the proposed mining area at Potangi, he said. Nalco, which has been struggling hard since eight years to avail the mines at Potangi having about 76 million tones of high grade bauxite.
Even though the Centre had already cleared the Potangi reserve in favour of the Navratna Company, the state government was not ready to make mandatory recommendation in favour of Nalco, sources said. The state government had been insisting on Nalco’s commitment to spend at least Rs 10 crore per annum towards CSR activities before getting the clearance.
The company, which planned to set up a greenfield project in the state at an investment of Rs 40,000 crore, desperately required new bauxite mines for its operation.