Tempels(religious places)

Mainpat (opencast mine)

BALCO operates the Mainpat and Bodai-Daldali bauxite mines, both located near
Chhattisgarh. According to the company, Mainpat is currently the primary operative mine
with a production of 565 300 tpa of bauxite in 2005-06.122 The method of mining is open
cast, and the excavated ore is sorted and trucked to the Korba complex for further
processing into aluminium and aluminium products

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Chhattisgarh pact with Balco for smelter

Raipur, Aug 19: The Chhattisgarh government has signed a memorandum of understanding with Bharat Aluminium Co Ltd (Balco) to set up a 6.5 lakh tonne per annum aluminium smelter at Korba at a cost of Rs 8,100 crore.

The agreement signifies the intent of Chhattisgarh government for rapid industrialisation and prosperity of the state and its population. The government has sought to extend comprehensive assistance to the new smelter project through active participation.

Chief Minister Raman Singh, Lok Sabha member Ramesh Bais, state health minister Amar Agrawal, the minister for forests, revenue, tourism and youth welfare, Brij Mohan Agrawal, minister for Raipur Ajay Chandrakar, industries & PWD minister Rajesh Munot, Raipur Mayor Sunil Soni, chief secretary Shiv Raj Singh, additional chief secretary, P Joy Oomen and principal secretary (energy) Vivek Dhandh were present.

Vedanta Group Chairman, Anil Agarwal, Balco's CEO and fulltime director Pramod Suri and other Balco officials represented Balco.

The chief minister said: "It is indeed an important occasion for the state that yet another landmark was put on its soil. Chhattisgarh is not only the energy capital of India but it will also become the aluminium capital."

Agarwal said, "The new smelter with the latest technology will add dynamism to the economy of the entire state. We aim to become the lowest-cost producer of aluminium in the world. I am thankful to the state government for supporting and encouraging our vision and projects."

The chief minister said alumina would be procured from Jharkhand and Orissa as there is shortage of bauxite in Chhattisgarh.

"We have requested the Vedanta group to build an aluminium park in Korba and promised to give total raw material and cheap electricity. It will be completed within five months," he said.

The Chief Minister urged Agarwal to open a hospital and engineering college at Korba, and to develop the Kawardha region from where bauxite is being excavated and where one of the world's most backward tribes lives.

Vedanta's Agarwal said Balco had a turnover of only Rs 92 crore when he took over the company from the government during a disinvestment drive.

"Then, with 6,000 employees on its rolls, it was suffering a loss of Rs. 43 crore. Its production capacity was 1 lakh tonnes, against which it produced 89,000 tonne of aluminium," Agarwal noted.

Since Balco's acquisition by Sterlite, the mining operations have been revamped, output maximized and outside purchase of bauxite stopped. Alumina production has increased to...

Balco to build Rs 300 cr cancer hospital in Chhattisgarh

RAIPUR: The Bharat Aluminium Company Ltd (Balco), which is a part of the Vedanta Group, will spend Rs 300 crore in building a cancer hospital and
research centre here, officials said Wednesday.

"The state government has given a 41 acre plot of land free of cost to Balco at village Saddu in capital Raipur to build the cancer hospital," an official said. The land has been handed given to the company for a 30-year lease period.

Balco will develop the hospital, the first of its kind in the state, within 18 months of the beginning of construction in November this year.

India's ninth largest state in terms of area, Chhattisgarh has an estimated population of 20.08 million but lacks medical and health care facilities. Balco has assured the government that it will treat poor people for free at its hospital

Govt rejects Balco expansion plans

New Delhi: The environment and forests ministry has rejected a fourfold expansion of bauxite mining capacity in Chhattisgarh sought by Bharat Aluminium Co. Ltd, or Balco, severely castigating the firm for what it describes as a “deplorably callous and casual attitude” in addressing concerns the ministry had raised earlier.
Balco, which is 51% owned by Sterlite Industries (India) Ltd and is the third largest aluminium producer in India, says it will reapply. Sterlite Industries is a wholly owned subsidiary of London-based Vedanta Resources Plc.
Anil Agarwal, chairman of Vedanta Resources Plc . Sterlite Industries, which owns 51% of Balco, is the wholly-owned subsidiary of Vedanta
Anil Agarwal, chairman of Vedanta Resources Plc . Sterlite Industries, which owns 51% of Balco, is the wholly-owned subsidiary of Vedanta
The rejection, which took place following a 12 October meeting at the ministry, is only now coming to light.
“We were quite taken aback at the committee’s stern words as well, but our person in the presentation was not able to convince the committee. We shall go back in a month’s time and we are hopeful that we will get clearance,” maintained Pramod Suri, chief executive officer of Balco.
Mining leases in India have to be cleared by the environment ministry on the basis of an environmental impact assessment, or EIA, which studies and determines the environmental and social impact of such a project.
Balco had filed applications to expand its mining capacity in Sarguja, from 0.45 million tonnes per annum, or mtpa, to 0.75 mtpa, and in Kabirdham, from 0.3 mtpa to 1.25 mtpa.
The expert appraisal committee, the internal panel in the ministry that decides on an EIA, in its 12 October report, the minutes of which have been reviewed by Mint, said: “The project proponent (Balco) has been in an unusual hurry in responding to the issues raised by the Expert Appraisal Committee in its meeting dated 18.7.2007 and, in the process, it has shown a deplorably callous and casual attitude in its replies, which are either incomplete or inappropriate and, on few vital issues, the replies have been in the form of assurances to give the details on an uncertain future date.”
Balco, which ceased to be a public sector undertaking in 2001, has expanded its aluminium production capacity from 0.13mt to 0.36mt. Balco has ambitious expansion plans in the pipeline, with a new 0.65mt smelter estimated at $2 billion and a 1,200MW power plant in Chhattisgarh.
Expansion of its mining capacities in Chhattisgarh would significantly boost Balco’s ability to source more quantities of bauxite domestically.
In its rejection of Balco’s Kabirdham proposal, the appraisal committee said: “The status of compliance to the specific conditions to environmental clearance was accorded in 2003 is far from satisfactory.”
See: Excerpts
The committee noted that Balco had not shown any “inclination” to think of a scheme to provide gainful economic activities on a sustained basis for these families that the company knew—well in advance—would have to be shifted when the proposed mining activities commence.
In a telephone conversation with Mint, Balco’s Suri said: “Flora, fauna, tribes or whosoever is there, we shall take care. We are committed to that.”
Suri insisted that the ministry’s rejection of its mining plans will not impact Balco’s ability to get adequate raw materials.
Balco obtains a little less than one-third of the raw material, alumina, from its Lanjigarh refinery in Orissa and the rest, some 0.5mt, are imported by the company.
Though he agreed that there are risks, especially of rising prices, associated with the dependence on imports, Suri says the price of alumina depends on the negotiated long-term contracts.
A senior ministry official, who did not wish to be identified, explained that the ministry approves expansion plans only after it has reviewed a company’s compliance with social and environmental obligations that it had already undertaken.
“In case the company has not been abiding by the previous regulations, expansion proposal should be rejected,” said the senior ministry official, explaining why Balco’s plans were rejected.
“There are key issues surrounding mining approvals, and it’s a significant risk factor, especially because there are only a few aluminium producers in India,” said Naveen Vohra, an analyst with Ernst and Young. He wasn’t talking specifically about the Balco case.
“If you compare India to other countries, such as Australia, on environmental benchmarks, India’s performance is abysmal,” Vohra said. “Ensuring environmental compliance is costly and the process needs to be transparent, which lacks in India and given the increasing importance of the environment, there are bound to be rejections.”
Balco’s Suri put it somewhat differently. “Definitely the way we have to go through the clearances in India is long drawn and tedious,” he complained. “There is no single window clearance. We hope it will improve with liberalization, so that so much time is not wasted. First, we have to get environmental clearances from state and then the Centre, then land acquisition and then rehabilitation. We have one-fifth of the world’s best bauxite reserves but produce only 3% of world’s aluminium.”
Another Vedanta affiliate also ran into unrelated legal and environmental issues in 2007.

Battle over Balco The sale of Bharat Aluminium Company Ltd.

CONTROVERSY continues to dog the Union government's first decisive sale of a controlling stake in a "big ticket" public sector undertaking (PSU), Bharat Aluminium Company Limited (Balco), the third largest aluminium producer in India. Although the sale o f 51 per cent of the government's stake to Sterlite Industries (India) Ltd for Rs.551.50 crores was consummated on March 2, after days of uproar in Parliament the battle is far from over.

K.K. NAIR
The Balco complex at Korba.

Balco's 7,500-strong workforce at its main complex at Korba, about 275 km from Raipur, the capital of Chattisgarh, was quick to react. The workers went on an indefinite strike from March 3, in a last-ditch attempt to get the deal reversed.

The strident posture adopted by Ajit Jogi, the Chief Minister of the backward and predominantly tribal State of Chattisgarh, has given the workers a shot in the arm (see interview). The resistance meant that Sterlite was unable to take physical possessio n of the plant for several days. Sterlite's managing director S.C. Krishnan reached the plant only on March 8.

Ajit Jogi has opposed the deal on three counts. He alleges that Balco's assets have been sold for a song and that points to corruption at the "highest level of government", implying the involvement of the Prime Minister's Office (PMO). Speaking in the St ate Assembly on March 2 during a two-day discussion on a government resolution against the sale, he alleged payoffs into Swiss bank accounts. He said that he would prove his charges provided he was given a fair and appropriate platform, such as a Joint P arliamentary Committee. The government resolution was passed in the Assembly by 41 votes for and 19 votes against it. Ajit Jogi later claimed that the fact that only 19 of the 35 Bharatiya Janata Party members were present in the House to vote against th e motion indicated that there were fissures in the party.

Jogi has also opened another front, accusing the Centre of concluding the deal without taking his government into confidence. He has repeatedly denied the claim made by the Minister for Disinvestment Arun Shourie in Parliament that the Chattisgarh govern ment was consulted at every stage about the Balco sale. The Union government, he told Frontline, had dealt "a body blow to the federal spirit of the Constitution". Spokesperson of the BJP V.K. Malhotra added a new dimension to the worsening relati ons between the Union and Chattisgarh governments, when he announced on March 7 that Balco's losses due to the strike would be "recovered" from the Central assistance due to the State.

The third reason cited by Jogi for his opposition to the deal stems from his contention that the sale violates constitutional provisions on several counts, notably those aimed at protecting tribal people from being alienated from their lands. He has mars halled court rulings to back his contention that the sale jeopardises the interests of the tribal people. Indeed, the Korba district administration has already proceeded to take action in the matter; the Sub-Divisional Officer (Civil) has issued notice t o several persons, among them Anil Agarwal, Sterlite's chairman and managing director, Arun Shourie, and the Secretary, Ministry of Disinvestment, on the grounds that the Balco sale violates constitutional provisions meant to prevent tribal people from b eing evicted from their lands.

K.K. NAIR
Union leaders addressing workers on the first day of the strike, on March 2.

Addressing the workers and their families at Balco Nagar, the company's sprawling township at Korba, on March 5, Jogi said: "The fight against the deal is over in the Lok Sabha, the Rajya Sabha and the State Assembly. It is now to be fought in the street s of Chattisgarh." In an emotion-charged speech, he said: "I have used all the powers at my command to stop and reverse the sale of Balco, which is so precious to Chattisgarh and its people." On March 10, Madhya Pradesh Chief Minister Digvijay Singh dema nded a review of the deal. He said that his government had only received a communique from a Central official and confirmed that it had not been consulted on the issue.

Although the now-disbanded Disinvestment Commission had initially recommended a 40 per cent divestment in Balco in 1997, the government decided to offload a controlling stake of 51 per to a strategic partner. On June 15, 2000, it invited bids for strateg ic partners. Initial media reports suggested that there were seven bidders for the "mini ratna", including global majors Alcoa and Kaiser and Indian companies, Hindustan Aluminium Company Ltd. (Hindalco) and Sterlite. The bids were submitted to Jardine F leming who were designated global advisers on the sale of Balco. Incidentally, Jardine Fleming also coordinated the National Democratic Alliance government's controversial disinvestment in Gas Authority of India Ltd. (GAIL) in November 1999 (Frontline , December 10, 1999).

The government was clearly on the defensive when the Balco issue was raised in the Rajya Sabha. The Opposition's onslaught elicited the first set of details about the deal on February 27 from Arun Shourie. Shourie said that Balco's screening committee se lected P.V. Rao and Co. for the valuation of the company's land, building, plant and machinery and the mines were valued by the Indian Bureau of Mines. The reserve price for the bid was Rs.514.40 crores for the 51 per cent stake in the company and a prem ium of 25 per cent was factored into the reserve price, he said.

Shourie said that Jardine Fleming used several evaluation methods to assess the bids. The discounted cash flow method for the 51 per cent stake was valued at Rs.332 crores to Rs.507 crores; comparable valuation method yielded a value of Rs.299 crores to Rs.464 crores; Rs.305 crores to Rs.348 crores if the 51 per cent stake was evaluated in terms of the balancesheet method. Shourie said that the asset valuation method would have yielded Rs.1,072 crores, implying that a 51 per cent stake would have amount ed to Rs.507 crores. He said that the evaluation committee, after "detailed deliberations", accepted the discounted cash flow method as the most suitable one for arriving at the reserve price.

The government agreed to a discussion in the Lok Sabha on March 1, owing to the pressure mounted by the Opposition as also the rumblings within the ruling coalition, notably from the Telugu Desam Party (TDP) and the Shiv Sena. In the Lok Sabha, Rupchand Pal of the Communist Party of India (Marxist) moved a motion against the sale. The TDP, which had launched an attack on the deal in the Rajya Sabha, changed tack in the Lok Sabha, where its member M.V.V.S. Murthy said that the "deal seemed to be transpar ent".

K.K. NAIR
Workers on protest.

In his reply to the motion, Shourie challenged Ajit Jogi to arrange for a bidder who would be willing to pay more for Balco. "He (Jogi) says the company is worth Rs.4,000 crores. Let him get a buyer who is willing to pay Rs.4,500 crores. We will pay Ster lite Rs.500 crores and ask it to go," he said. Shourie said: "The two governments had, in fact, been helpful at each stage." Ajit Jogi was prompt to deny that he or his government had ever been consulted on the disinvestment proposal. He said he was read y to resign if Shourie could prove that he had been consulted.

The government was quick to consummate the deal after the Opposition's motion was defeated in the Lok Sabha - 239 votes against and 119 for, with three abstentions. Speaking hours after the government's victory, Anil Agarwal declared that the "deal will serve as a model for other disinvestment in the future". On March 2, Sterlite handed over a cheque for Rs.551.50 crores to and signed the share purchase agreement and a shareholders' pact with the Union government.

The same day, a Bench of the Supreme Court stayed the proceedings before the Delhi and Chattisgarh High Courts in petitions challenging the Balco sale and transferred them to itself. The apex court issued notice to the Balco employees' unions, the govern ment-appointed valuers, Jardine Fleming and Sterlite Industries.

On March 7, the Supreme Court, hearing an urgent application filed by the Union government, directed the Chattisgarh government to protect the workers and officers of the plant who wished to resume work. It also directed the State government to ensure th at essential supplies were not disrupted to those inside the plant. However, the Centre came under attack from the Opposition in Parliament. The Opposition charged it with attempt to break the peaceful strike by going to court on "false premises". Shouri e claimed that the government sought the court's intervention because it feared sabotage and "imminent danger" to the plant and a breakdown of law and order in Korba in view of the inflammatory statements made by political leaders of Chattisgarh.

The unions' position on the deal hinges crucially on the manner in which the valuation has been done. They allege that Sterlite's 51 per cent holding will enable it to control Balco's assets, which are in several multiples of the amount it has paid to ge t the controlling stake.

K.K. NAIR
Chief Minister Ajit Jogi addressing Balco workers on March 5 at Balco Nagar.

Brahma Singh, general secretary of the Balco Employees' Union, which affiliated to the Indian National Trade Union Congress (INTUC), said that "the deal stinks". He told Frontline that on the day of the sale, the company had fixed deposits that am ounted to about Rs.350 crores. The company had invested Rs.200 crores in a cold rolling mill and a sheet caster, which, he said, had not even started commercial operations. "The government," he said, "has handed the brand new machinery on a platter to St erlite."

Brahma Singh said that there were Rs.90 crores worth of salable materials lying on the plant's premises. He said that Sterlite had now gained access to scrap worth Rs.50 crores, inventory worth Rs.70 crores and raw materials (caustic soda, fuel oil and b auxite) worth Rs.100 crores in the plant. In addition, Balco's 270 megawatt captive power plant had materials worth about Rs.100 crores on its premises on the day Sterlite took over the company.

Brahma Singh also said that the acquisition would enable Sterlite to have access to the more 3,000 acres (1,200 hectares) of land at Rs.2 lakhs per acre (based on a recent land acquisition by Balco). Brahma reckons that the value of the land in Balco's p ossession amounts to at least Rs.70 crores. He estimates the company's prime real estate possessions in Mumbai, New Delhi, Kolkata and Chennai at Rs.100 crores. The union leader feels that under these heads alone, and not taking into account Balco's plan t, machinery and equipment Sterlite has gained access to assets worth more than Rs.900 crores. Several experts have pointed out that the captive power plant is worth at least Rs.1,000 crores, even after accounting for depreciation.

The unions allege that successive governments have failed to protect Balco's long-term interests. Brahma Singh, now heading the seven-union front, said that Balco's expansion and modernisation had been neglected for a long time. "Money," he said, "is not the problem. The problem has been their attitude." Balco made profits continuously in the last 12 years; its debt-equity ratio has been rather favourable; it even had surplus cash reserves that could have been ploughed into expansion and modernisation p rojects.

Several senior Balco officials told Frontline that the company's proposals for modernisation had been pending with the Union government for nearly a decade. "All that Balco needed were procedural clearances from the government. We never expected m oney for the projects, estimated at between Rs.400 crores and Rs.600 crores at that time," said one. Instead of investing in Balco's expansion, the government withdrew half its equity stake during the current financial year, from Rs.489 crores to Rs.244 crores. In February 2001, on the eve of the sale to Sterlite, it withdrew a further Rs.23.80 crores.

ANU PUSHKARNA
Arun Shourie, Union Minister in charge of disinvestment.

A senior official, who has been associated with the company since the "jungle-clearing days" in the late 1960s, told Frontline that the aluminium smelter's capacity had remained at one lakh tonnes per annum (tpa) since 1970. Its alumina plant requ ired to be expanded from the current level of 2 lakh tpa to at least 5 lakh tpa in order to be in line with best practices across the world. "Today's technology is about 30 years old, we should have kept pace," he said. "We could not, not because we were inherently inefficient but because the government did not allow us to move on with the times." He complained that for several years, particularly after the onset of the reforms process, "new ideas have not been promoted at Balco". He explained that priv ate interests, referring sharply to a large Indian aluminium major, "worked to prevent Balco from emerging as a strong competitor". Referring to Balco's participation in the country's missile development programme, company officials also pointed to the s ecurity risks that would arise from the handing over of the company to a private entity.

The problems on account of the failure to modernise accumulated over the years. Balco's cost of production has been much higher compared to either Hindalco, the biggest aluminium producing company, which belongs to the A.V. Birla group, or the other stat e-owned aluminium major, National Aluminium Company Ltd (Nalco). Balco's weaknesses are mainly because of the higher power consumption as a consequence of its dated production technology. Moreover, Balco was also saddled with a loss-making private unit l ocated at Bidhanbag in West Bengal.

The seven major trade unions, under the banner of the Balco Bachao Sangharsh Samiti, have for over two years resisted the privatisation bid. Significantly, even the union affiliated to the Bharatiya Mazdoor Sangh, the trade union wing of the BJP has join ed the common platform.

The base of the struggle has widened in the qualitatively changed situation after the sale. A new platform, the Nijikaran Virodhi Samyukt Samiti (anti-privatisation front), was formed on February 28, accommodating not just the unions but all political pa rties barring the BJP. Other organisations, notably the Chattisgarh Chamber of Commerce, have also joined the platform. On the second day of the strike, the womenfolk of Balco Nagar participated in a torchlight procession. Said B.L. Netam, an activist of the Centre of Indian Trade Unions (CITU): "Balco's sale has provoked even our womenfolk, who are bound by traditional values, to come out on the streets."

V.C. Shukla, former Union Minister, who leads a Congress(I) group opposed to Jogi in Chattisgarh, visited Balco Nagar. Although he offered to lead the agitation, the trade unions do not want to be caught in the crossfire between the Shukla and Jogi camp s.

The struggle has been peaceful so far. In response to the Supreme Court's directive the unions have climbed down from their earlier stand that they would not allow Sterlite officials to enter the plant. Sterlite has invited the leaders of the seven union s to Delhi for talks. Brahma Singh said: "We do not recognise the Sterlite management, we will only talk to the Government of India."

Sterlite declared a lockout on March 10, alleging that the plant was in risk of being damaged. However, the unions have accused the company of precipitating a crisis by closing down the plant and blaming the workers for it. The workers were aware that th e smelter ran the risk of being damaged in the event of a complete stoppage of work. On the fifth day of the agitation, the core committee of the unions issued passes to more than 70 workers to enter the plant in order to keep the smelter alive. Netam s aid that the workers had offered shram daan (free and voluntary labour) to protect the plant. "After all," he said, "this is the hand that feeds us. How can we allow it to be destroyed?"

Jogi's opposition to the deal has rested on the premise that it violates the hopes and aspirations of Chattisgarh. He argues that the land on which Balco stood was acquired from tribal people. He contends that since the company is no longer a publicly ow ned entity the land should be returned to its original owners. Jogi has also cited legal provisions as a means to prevent Sterlite from enjoying access to the bauxite mines hitherto operated by Balco.

Shyamlal Maravi, vice-president of the Chattisgarh Adivasi Vikas Parishad, told Frontline that land from scores of tribal hamlets was acquired after Balco was incorporated in 1965. In most cases, the owners were paid Rs.20 per acre.

Although the government and Sterlite have said that there will be no retrenchment for at least one year, there is a widespread fear that the new management will shed workers in significant numbers after that point. Sterlite's corporate reputation is also a point of animated discussion (see box). Shourie assured Parliament that the company was committed to a lock-in period of three years and that it would not be allowed to strip the assets of the company. However, analysts say that it will be difficult t o prevent a shareholder with a decisive controlling stake from actually doing this.

Cynics within the Congress(I), notably those belonging to the V.C. Shukla camp and elsewhere, have warned the workers that Ajit Jogi is making political capital out of the issue. However, those sympathetic to him say that the Chief Minister has establish ed his tribal credentials beyond doubt. The workers place much hope on Ajit Jogi's support, but the success of their agitation will depend on how far Ajit Jogi would go.

The valuation of a company's assets is always tricky business. Much depends on the expectations of profits, the size of the assets and liabilities, goodwill, and other factors. Critics of the reforms programme have been demanding that the replacement cos t of existing assets of a PSU should be factored into the valuation. This method, they say, would set a benchmark price, determined by what it costs for a purchasing entity to set up a similar production facility with assets of a comparable size. The fac t that murky deals are suspected irrespective of the nature of the offloading exercise - through the stock markets or through "strategic sale" - only indicates that privatisation is nothing but the sale of public assets for private benefit at a substanti al discount.

KORBA CITY

Korba is located at [show location on an interactive map] [show location on an interactive map] [show location on an interactive map] 22°21′N 82°41′E / 22.35, 82.68.[1] It has an average elevation of 252 metres (826 feet).

Korba (population 1005,965) is a center of Korba District in the newly formed state of Chhattisgarh, India (Nov.1, 2000). It is situated at the confluence of the Hasdeo and Ahiran rivers. Located at 22*20' North latitude and 82*42' East longitude, with a height of 304.8 meter. above sea level. It is the major source of electricity in Chhattisgarh.

Korba city enjoys varied climates and weathers. Korba and Champa are well known for “Kosa”, a precious cloth, producing the best quality in the world. Being light in weight and having shiny glaze, it is use to make Kurtas, Sarees, Shirts, Salwar-Suits and other garments for party as well as casual wears. Korba is connected to Champa, the nearest railway junction, on the Howrah-Nagpur-Mumbai, South Eastern Railway Zone. It is directly connected to Bilaspur the Divisional Head Quarter by rail and road through Katghora-Pali-Ratanpur. The nearest airport is at Raipur, which is about 250 KM from Korba.

Korba city is really the Power Capital of India. NTPC's Super Thermal Power Plant in Korba is working at 90% Plant Load Factor (PLF), and the plants of the Chhattisgarh State Electricity Board (CSEB) are also highly efficient. There are huge coal reserves in the vicinity, offering cheap pithead power generation opportunities and there is enough water from the State's largest reservoir of Hasdeo Bango. 84% of India's coal is in Chhattisgarh and two other States. There are adequate coal supplies- South Eastern Coalfields Ltd, Bilaspur is doubling its production from 35 million tonnes to 70 million tonnes per annum.

Korba is also the site of an aluminium facility operated by Bharat Aluminium Company (BALCO).

Korba and its surrounding

M/s LANCO Amarkantak Power Pvt. Ltd. is establishing a coal based thermal power plant at Patadi village of Dist. Korba which is under construction. Mr. A. Pattabhi Raman, Director of the project is monitoring construction activity with his 38 years of sharp experience. His team consists of D.Chun is the best student ever!!!!!, D.K. Tiwari is acquiring the land for expansion and other co-related requirements.

Korba is surrounded by public sector power units and now also the privately owned aluminium producer BALCO. The companies have their own infrastructure of townships with all amenities such as shops, schools and hospitals. One of the most sought after school is the Delhi Public School in the vicinity of NTPC township as it offers good quality education with English as the main language. Also there are various "Central" schools and other privately run schools. One of the drawbacks of living in Korba or its surroundings is the national rail links. The closest national rail station is Champa, but its a very small station and not all trains stop there and the ones that do stop, stop for a very short duration. The next closest station is Bilaspur which is a railway junction. Bilaspur is at least couple of hours taxi or bus ride away.

There are some colonies also situated in korba. These are C.S.E.B.[Chhattisgarh State Electricity Board] Korba East, C.S.E.B. Korba West, N.T.P.C. Colony and BALCO Colony. C.S.E.B. is the big source of electricity in Chhattisgarh, N.T.P.C. is also a big source of electricity in country level.

Demographics

As of 2001[update] India census,[2] Korba had a population of 315,695. Males constitute 52% of the population and females 48%. Korba has an average literacy rate of 69%, higher than the national average of 59.5%: male literacy is 77%, and female literacy is 59%. In Korba, 14% of the population is under 6 years of age.

[edit] Education

Most of the government-run schools in Korba are affiliated with the State School Examination Board, whereas most private schools are affiliated with Central Board of Secondary Education (CBSE) and Indian Certificate of Secondary Education (ICSE) boards.

Schools affiliated to State Board:

* Gayatri Vidya Peeth
* Sarswati Shishu Mandir
* Vidhyut grih higher sec. school
* Nirmala Higher sec. School
* Beacon English higher secondary school,darri
* M.G.M H.S.School,BALCO.
* Blue Bird Public School.

Schools affiliated to CBSE Board:

* D.A.V. Public School
* Delhi Public School
* St. Xaviers School
* Kendriya Vidyalaya

The Coal City is served by these main universities:

* Guru Ghasidas Vishwavidyalaya

Apart from several colleges offering undergraduate and postgraduate courses, there are many professional educational institutes viz.

* Govt. Polytechnic College
* Kamla Nehru College Korba
* Govt. P.G. College Korba
* Govt. Minimata Girls College Korba
* Korba City College
* Swami Vivekanand College [English medium].

One Engineering college .(2008)

* Institute of Technology Korba

Entertainment

Korba is having some entertainment places: Appoo Garden is one of the most popular entertainment place in Korba. Korba is also having some cinema halls some of them are:

* Chitra Talkies
* Niharika Talkies
* Bajrang Talkies

A new open theatre has also been built by city corporation. There are other parks also like the Traffic Park and City Park. There are talks about building a multiplex also. The city is growing everyday and so are its entertainment facilities.

Transport

Korba is a coal city & because of this various possibility of transport is present here. This city is having two bus terminus. Korba city is connected with Railway line. Balco have its own runway.

The Ugly Face Of BALCO Privatisation

The Ugly Face Of BALCO Privatisation

THE privatisation of BALCO has been the most bizarre instance of crony capitalism in the post 1991 era of structural reforms followed by successive Indian governments. BALCO was the foremost public sector run integrated aluminum producer in the country prior to the selling of 51 percent of its shares and transfer of its management to a strategic partner, M/s Sterlite Industry in 2001 during the NDA regime. This strategic sale was opposed tooth and nail by the BALCO trade unions and the Left parties. There were serious charges of gross undervaluation of assets, collusive bidding leading to the sale of prime public assets at a throwaway price to M/s Sterlite, which became a subsidiary of M/s Vedanta Resources, a London stock exchange listed company. The 7,000 strong workforce put up a stiff resistance through a continuous strike for 67 days after the sale of BALCO, which, apart from highlighting the shady deal, symbolised their genuine apprehensions about their job security, sustenance of existing terms and conditions of work as well as the future of local development in the backward area of Korba in Chhattisgarh where BALCO is located.

Some of these concerns are addressed in a study titled “Impact of Privatisation on Labour: A study of BALCO Disinvestment“ conducted by Dr. Babu P Remesh for the V.V.Giri National Labour Institute, an autonomous body under the ministry of Labour, government of India. The study examines the impact of privatisation on labour, employment and livelihood aspects of workers and worker communities. This is the first time that any such study has been made by a reputed institution under the aegis of the government of India.

In August 2006, CAG report no. 17 of 2006 affirmed in no uncertain terms that BALCO was indeed grossly undervalued and now comes this well documented study report from VVG NLI reconfirming the torrent of complaints from thousands of suffering employees of BALCO about gross violations of labour related clauses of the shareholders agreement between the government and Sterlite.

The study was based on an analysis of both primary and secondary data. The broader contextualisation of the disinvestment of BALCO was attempted through a detailed analysis of the available secondary information, and the material available from the department of disinvestments, government of India. Subsequently, the field work of the study was carried out in and around BALCO Nagar, Korba, during February – July 2005. The following sections of the report substantiate the charges of gross violation of labour related clauses of share holders agreement in letter and spirit.

ISSUES RELATED TO VRS – OPTIONAL OR IMPOSED?

The report says:

“From detailed interviews with the VRS optees, it was evident that various modes of coercion were engaged in implementing the VRS agenda by the new management. Many of the respondents felt that they were forcefully dragged into the scheme, though there was no open or direct threat from the management to accept the VRS. A commonly used methodology was to prepare the workers to accept the VRS by creating ambiguities and uncertainties. According to some of the respondents, prior to the introduction of each VRS offer, the management was resorting to many indirect pressurisation tactics at workplace, which forced the workers to seriously think of leaving their job, whenever a suitable situation comes.

An important strategy adopted by management was to humiliate the workers by directly attacking their self-esteem and questioning their loyalty to the firm. Many of the respondents suggested that one of the major considerations while contemplating VRS was the demoralisation and trauma that they had experienced at the workplace during the post-disinvestment period. It was widely reported that Sterlite appointed some youngsters, who were given ‘huge’ salaries and positions, bypassing all the existing norms in recruitment. The major qualification for these managerial staff was their proximity to Sterlite authorities”.

DEFERRED PAYMENT – A CLEAR VIOLATION OF SHAREHOLDERS AGREEMENT

“A major reason for dissatisfaction of the VRS beneficiaries was the arbitrary decision of the management to follow a deferred payment system, whereas the VRS compensation amount is paid only in five installments with a gap of 6 months between each payment. This act of the management is a departure from the standard procedure, as noted earlier by the FFC. Many of the retirees cited that this deferment of payment had created lots of problems in future household planning. Instances were cited where the retirees had to find out other sources of finance for certain already committed heads of expenditure, in anticipation of the realisation of the VRS amount in single payment. These include: completion of construction/renovation of houses and marriage of daughters, following pre-committed obligations. It was also widely complained that while payment of ex-gratia was made in five installments, all payable amounts and recoveries from the workers to the firm were deducted from the first installment itself. Many of the retirees as well as trade unionists functioning in BALCO accused that while the workmen were given their dues in five installments, the ex-gratia to the company’s executives was paid in one go. It was also cited that the management had deducted a sum from their VRS amount, to recover the advance payment made to them at the time of resuming duties after the 67 days’ strike, following the direction of the apex court”.

ON POST VRS DUES

“More than 80 per cent of the VRS optees complained that they did not receive the VRS amount immediately and had to wait for one-three months or even more. Many of the retirees had really tough times approaching the concerned officers repeatedly and requesting to release their VRS dues. It was generally felt that the management had not shown much interest in ensuring the timely payment of VRS amount and at times the retirees even had to bribe the concerned staff, the amount of which was reported to vary from Rs. 100 to Rs. 2000”.

IMPLICATION ON LOCAL LEVEL DEVELOPMENT

The wider impact of privatisation and VRS on the community and service providers to the employees, as well as the local development of the area, was also studied in detail. The report elaborates the following on this issue:

“Another major concern that was addressed in the study was the impact of privatisation on the development of the locality – i.e., BALCO Nagar and the villages around it. It was anticipated that the shift of management from the public sector to a private strategic partner may lead to certain changes in the approach of the management in addressing issues related to local level development. This aspect assumes added importance, as all the public sector undertakings set up in backward and developing regions (such as Korba) were specially known for their concern for regional development in terms of provision of employment to local people, creation and provision of basic amenities and services free of cost or at moderate / subsidised rates (which include, water, sanitation, electricity, creation of roads and so on). In this line, BALCO, before the disinvestment, had a commendable track record of contributing towards local development. A considerable share of the workforce in the company was inducted from local people.”

After privatisation, the scenario changed completely, as the report points out:

“ They pointed out the case of a new unit, which has been launched under the aegis of Vedanta, a sister concern of BALCO, where a majority of the workers inducted so far are non-locals. They also cited that the presence of workers from Chattisgarh is minimal among the contract workers involved in this project as well as in the other construction ventures in the locality. In the construction sites, the contractors mostly engage migrant labour. The contractors are getting most of the workers from other states such as Jharkhand, Orissa, Bihar, West Bengal and so on. They recounted that during earlier times, around 60-70 per cent of the contract workers were selected from local areas, though the contractors were often outsiders. Now, both the contractors and manual workers are outsiders”.

“The two schools located inside BALCO Nagar had been the major educational institutions in the area, apart from a few government primary schools. Due to the subsidised fee structure and other benefits available to the mostly within the BALCO employees, the enrolment in these schools was mostly from within the BALCO community. Of late, due to the cumulative effect of several factors, there is a visible decline in the school enrolment rates. In the light of this development, the new management closed the junior wing of the school functioning within BALCO Nagar (in 2004) and integrated the remaining students and teachers to the Main School. However, it was pointed out as really painful by many of the respondents that now the company is using the junior school building as a warehouse/godown.”

As a worker reacted: “They (the new management) have converted it as a godown. It’s not because they don’t have any other building or space to store the gunny bags. It is just to show us that this is what they think about the education of our offsprings and the development of this locality.”

“The local people increasingly feel that their township has become more alien to them. The schools are unaffordable and getting closed; the hospitals are not meant for local people; even entry of locals into the BALCO township area for vending or petty business purpose are highly monitored and scrutinised. The people also believe that the new management has no interest in maintaining the green belt in the region and upgrading the public utility services in the region, though development activities are being carried out for private use of the company on emergency basis.”

The present study by Dr. Babu P. Remesh has unmasked the ugly face of privatisation of the public sector undertakings as a whole and BALCO in particular. The report itself is a document which clearly exposes that M/s Sterlite and its present holding company, M/s Vedanta have flagrantly violated all labour clauses of the Shareholders Agreement in letter and spirit. This is a breach of the contract on which the unholy deal was finalised by the NDA government. Does the UPA government possess the courage to cancel the deal with Sri P.Chidambaram, the erstwhile Director in M/s Vedanta Resources at the helm of its Cabinet?

More such studies should be conducted of the other companies which were privatised during the NDA regime, like the Modern Foods, Centaur Hotels, VSNL, Hindustan Teleprinters, etc. so that the social and economic costs of privatisation are revealed in all their stark and brutal reality.

By,

Dipankar Mukherjee

PLANT 1 A HEARTENING TURNAROUND

Re-inventing, Re-engineering are words that have come
to be permanently associated with BALCO Plant 1, Restablished in 1965. The Plant operating with the VSS
(Soderberg) technology has shown a remarkable turnaround
from the moment it came under the Vedanta management and
leadership, in 2001. Every conceivable measure continues to
be taken to operate it to surpass installed capacities, without
jeopardizing COP figures or the human asset. The march
ahead has been arduous but the pursuit is relentless and
untiring. The huge pool of young talent which came to
characterize the plant is at its creative best, generating novel
ideas and solutions to every little and large problem ailing the
Plant that is as old as the organization itself.


ALUMINA

As aforementioned,

Plant I is as old as BALCO itself

and not much had been spent on

maintaining the plant and its

equipments since its Public

Sector days. Doubtlessly, these

have acted as brakes to
optimizing production. However, in recent years, much has
been achieved on account of major de-bottlenecking exercises
that have been undertaken with total dedication. The
consequences of these efforts are palpable: production has
increased from 1.9 lac tpa (ton per annum) to 2.45 tpa
surpassing the installed capacity of 2 lac tpa.

SMELTER

The story associated with the Smelter is similar. The

Smelter which did not produce beyond 98000 tpa of aluminium
prior to disinvestment, not only stepped up production to its
installed capacity of 1 lac tpa but went beyond, to produce 1.06
lac tpa during 2005-06 and is presently producing 1.13 lac tpa.

It is undoubtedly remarkable that the Plant has witnessed
a miraculous turnaround with an accelerated production that
exceeded target figures in such a short span of time since
disinvestment. The miracle happened when the operating
machinery was well-oiled and geared to accomplish what
seemed almost impossible, given the 'ancient' state of
technology. The System, Procedure and SOPs have been
followed to the dot. SOPs were made, scrutinized and
changed, based on the conditions at which the smelter was
being operated. Further, by suitable modifications to the pot
linings, the pot-line which was designed to operate at 100
KAmps is presently functioning at 113 Kamps.

FABRICATION

De-bottlenecking has been
done in each one of the 3
Properzis in the area of
Fabrication. The steel wheel in
one of the properzis was changed
to copper mould wheel to increase
its speed. This resulted in
increased rod output from the
earlier 56-57 tonnes per day to the
present 72 tonnes per day.
Similarly, in one of the other
properzis with copper mould, its
diameter was increased. With this
change, while keeping the RPM
unaltered at its original rate, production has increased from 6568
tonnes per day to 75 tonnes per day. As a result of these
changes, the output of the Rod Mill has increased today, from
5800 tonnes per month to 6500 tonnes a month.

Brainstorming exercises, strict SOP compliance and
discipline have enhanced the availability and reliability of the
Roll Contact Time of each and every mill that turn out Flat
products in the Rolling Mills.

Measures are afoot to enhance the production of Flat
Products from the present 60,000 tpa to 100,000 tpa. To meet
this target, the Company went for CAPEX from which some
expenditure has already been incurred while installing some
capital equipment. The 100,000 tpa mark is likely to be
achieved by March 2008.

One of the heartening aspects of the Plant's
operations is that their post disinvestment became the
charged nature of its employee force which realizes the

inextricable interdependence of
its growth and welfare with that
of the organization. The
Company, on its part, has
initiated a gamut of incentives
to inspire and motivate the
staff, including reward for, and
recognition of good work.
Better utilization of its human
asset, a well-streamlined
system of procedures, audit and
monitoring and have all
combined to augment
production in Plant I.

Plant I is presently gearing
up to benchmark itself with other
smelters in the world when

talked about safety. Utmost care is being taken to address the
issue by the Plant Head, the Safety Department, SB Heads of
every SBU wherein weekly and monthly reviews are done, not
only at the Plant level, but also at the level of the CEO. With the
ongoing stringent measures, it is hoped that the Plant would be
able to achieve its benchmark target by mid 2008.

Whereas the high fluouride emissions using VSS
technology has been a cause of concern in most smelters
anywhere in the world, Plant I has taken appropriate measures
in the last six months to keep this emission level, well within
permissible levels, by installing the dry scrubber system in the
Smelter. Similarly, in Alumina Plant, ESPs in Steam Plant are
under replacement and New Bought Cyclones are being
installed in Kilns

Last but not the least, their feasibility studies have been
undertaken to switchover from the present VSS (Soderberg)
technology to the PreBake. The Company is awaiting long-
term results of such a switch undertaken in a few smelters in
China and also on two lines of Hindalco to observe their
economic viability.

PLANT I PRODUCTION: AN OVERVIEW
Plant Installed Capacity Present Production
Alumina 200,000tpa 245,000 tpa
Smelter 97,000 tpa 113,000 tpa
Rod Mill (all 3) 48,000 tpa 78,000 tpa
Rolling Mills 36,000 tpa 60,000 tpa

‘Agni, Surface Missile, Prithvi’ -Significant Achievement of BALCO Contributing to the Nation’s Defence Capabilities

Bharat Aluminium Co. Ltd. (BALCO) was incorporated
in the year 1965 as a Public Sector Undertaking (PSU).
BALCO has several “firsts” to its credit. It is the first public
sector enterprise in the country which started producing
aluminium in 1974. In 1987-88, a captive power plant of 270
MW was added to cater to the power requirement of the unit.
BALCO has been the first in the Indian Aluminium Industry to
produce the Alloy Rods, which is a Feedstock for all
Aluminium Alloy Conductors, very much needed for today's
power transmission lines. Till 2001, BALCO was a public
sector enterprise owned 100% by Government of India
(GoI). In the year 2001, GoI divested 51% equity and
management control in favour of Sterlite Industries (I)
Limited.

Bharat Aluminium Company Limited (BALCO) is
situated at Korba in Chattisgarh. It is an integrated plant
with production capacity of 200,000 MT/yr of Alumina and
1,00,000 MT/yr of Aluminium metal with down stream
facilities to produce various cast, rolled and extruded
products. The alumina plant was designed with know-how
supplied by Aluterv-FKI (Chemokomplex) of Hungary and
commissioned in April 1973.

BALCO Alumina refinery is situated at korba district of
Chattisgarh state ( Previously Madhya pradesh).The plant is
located at around 240 kilometer from Raipur , 45 kilometer
from Champa and 9 kilometer from korba.

The development of special aluminium alloys for
‘Intermediate Range Ballistic Missile’ Agni and ‘Surface
Missile’ Prithvi have been significant achievements of
BALCO contributing to the nation's defence capabilities.

200,000 tonnes of alumina production capacity, 100,000
tonnes per annum of smelting capacity, three Properzi Rod
Mills, three pig casting machines, integrated hot and cold
rolling mills, a captive power plant of 270 MW capacity are
just a glimpse of BALCO's production capacity built over the
last 39 years of its existence.

The year 2003-2004 has been a high performance year
for BALCO. BALCO achieved the:

Highest ever calcined alumina production

Highest hot metal production

Highest saleable metal production
Mining Process :

Bharat Aluminium Co. Ltd. (BALCO) has Captive
Bauxite mines. The method of mining is open cast semi-
mechanized. Overburden, which is in the form of soil &
laterite, is first excavated by a combination of shovel /

excavator and dumper in order to expose ore-zone. Then
the ore zone is drilled and blasted. The blasted ore is subject
to sorting in order to upgrade the “Run of Grade” to “Plant
Feed Grade” i.e. 48% Al O . Sorting is carried out at the

23

mine-face and the rejects associated in the ore zone are
back-filled concurrently. The area is then leveled and
afforested. The sorted ore is then trucked to the Korba
complex for further processing.

Mines :

Mainpat is the primary operative mine, which produces
approximately 500,000 tpa of Bauxite. Approximately
100,000- 150,000 tpa Bauxite is procured on commission
basis from non-captive mines. There are plans to open
another deposit named BodaiDaldali in Kawardha District in
the near future.

Manipat has about 5.0 million tonnes of reserves while
Bodai-Daladai has 7.11 million tonnes of Bauxite reserves.

Alumina Refinery :

Process Technology : Bauxite is the main raw material
used for the production of alumina. The mineralogical form
in which the alumina is bound distinguishes the different
types of bauxite. They are then called gibbsitic, boehmitic or
diasporic bauxite. The Alumina (Aluminium oxide) is
extracted from bauxite using Bayer Process.

Element Quantity Mineralogical Composition
Aluminium Al O :2 3
35 to 65%
Gibbsite Al(OH)3
Boehmite AlOOH
Diaspore AlOOH
Substituted Goethite
Silicon SiO :2
35 to 65%
Quartz
Kaolinite
Opal etc…
Iron Fe O :2 3
2 to 30%
Goethite
Hematite
Siderite
Titanium TiO :2
0.5 to 8%
Anastasite
Rutile
Calcium CaO:
0 to 55%
Calcite
Dolomie
Magnesite



Alumina Refining :

The aluminum industry relies on the Bayer process to
produce alumina from bauxite. It remains the most
economic means of extracting alumina, which in turn is vital
for the production of aluminum metal - two to three tonnes of
alumina are required to produce one tonne of aluminum,
depending upon the content of alumina in the bauxite.

Bauxite is crushed, ground and digested in caustic soda
(sodium hydroxide) at high pressure and temperature. The
resulting liquor contains a solution of sodium aluminate and
undissolved bauxite residues containing iron, silicon, and
titanium. These residues, known as “red mud”, settle
gradually to the bottom of the settling tank and are filtered
and removed.

The clear sodium aluminate solution, which is called
aluminate liquor, is pumped into a huge tank called a
precipitator. Fine particles of alumina are added to seed the
precipitation of pure alumina particles as the liquor cools.
The precipitation process is a batch as well as continuous.
The solid particles concentration increases, which are
removed, filtered and washed, and are then passed through
a rotary or fluidized calciner at 1100°C to drive off the
chemically combined water. The result is a white powder,
pure alumina. The caustic soda, which is called, spent
liquor is recycled and returned to the start of the process and
used again.

The Bayer Process :

Today all the alumina produced from bauxite uses the
Bayer Process -an economical method of producing
aluminium oxide which was discovered by an Austrian
chemist Karl Bayer and patented in 1887.

The process dissolves the aluminium component of
bauxite ore in sodium hydroxide (caustic soda), removes
impurities from the solution; and precipitates alumina
trihydrate, which is then calcined to aluminium oxide

Bauxite usually consist of 2 forms of alumina a
monhydrate form Boehmite (Al O .H O) and a trihydrate

23 2

form Gibbsite (Al O .3H O).

23 2
o

Boehmite requires elevated temperature (above 200 C)
to dissolve readily in 10% sodium hydroxide solution. The
trihydrate grade bauxite (mainly Gibbsite) dissolves readily
in 10% sodium hydroxide solution at temperatures below

o

150 C.

Consequently, monohydrate bauxite undergoes high
temperature extraction under pressure in digesters.

Technology adopted :

High-pressure digestion technology is adopted for the
production of Alumina.
The Plant consists of the following main establishments:-

Crushing and Grinding Section ; Slurry storage &
Desilication ; Slurry Preheating & Digestion Section ;
Dilution, Settling & Washing Section ; Red Mud Filtration &
Causticization Section ; Aluminate Liquor Cooling & Spent
Liquor Thickening Section. Precipitation & Hydrate Filtration
Section ; Evaporation & Salt Removal Section ; Calcination,
Raw Material & Lime Slaking Unit.

The Bauxite received from mines is stored in the open
bauxite yard. It is blended and crushed. The crushed
bauxite is then conveyed to Ball Mill section where the
bauxite along with the recycled caustic soda solution called
digestion liquor is ground. The slurry after grinding is stored
in tanks and pumped to Desilication units after preheating.
The desilicated slurry is digested in the series of digesters
by steam at high pressure. The digested slurry is flashed
and diluted before going to settling tanks. Flocculants are
added for faster sedimentation of the mud. The settled mud
(called Red Mud) is subsequently washed before going to
red mud disposal area.

Hydrocyclone :

Under modernization programme with installation of
Hydro cyclone which has pivot role for hydrate filtration.
Raw and fine crystals of alumina hydrate are separated
through hydrostatic process from hydrate liquor. Fine
crystals are resent to precipitation for seeding whereas raw
crystals are sent as product to calcinations through filtration
process where finally it is turned into alumina powder. By
way of using the hydro cyclone in alumina plant, the
production and productivity is supposed to be improved 3040%.
It has been fully designed and prepared by Balco
engineers only at about 20% of its cost for the same product
available in the market.

The clear supernatant liquor (called aluminate liquor) is
filtered and cooled in heat exchangers. The cooled
aluminate liquor is then pumped to precipitation unit. The
precipitated hydrate is filtered, washed and stored in
hydrate godown.

The product hydrate is fed to kiln where it is calcined at a
temperature of 1200°C.

The Calcined alumina is stored in silos.

Smelting Process :

Bharat Aluminium Co. Ltd. (BALCO) uses VSS
(Vertical Stud Soderberg) technology to produce Aluminium
from Alumina. Alumina is dissolved in an electrolytic bath of
molten cryolite (Sodium Aluminium Fluoride) within a large
carbon or graphite lined steel container known as a "pot".

An electric current is passed through the electrolyte at
low voltage, but very high current. The electric current flows
between a carbon anode (positive), made of petroleum coke
and pitch, and a cathode (negative), formed by the thick




carbon or graphite lining of the pot. Molten Aluminium is
deposited at the bottom of the pot and is siphoned off
periodically. It is then taken to a holding furnace, cleaned
and then cast.

Balco Fabrication :

For the past 30 years Bharat Aluminium Company has
been dedicated in developing World Class Quality
aluminium plates and sheets of various alloys. To stay
ahead of competition it has adopted many state of the art
technologies and has firmly established itself as a frontrunner
among the producers of aluminium sheets and
plates.

Since 1980 Balco is catering to the needs of Defence
and Space Research. The following sophisticated alloys
have been developed and supplied for defence and space
applications:


1 AFNOR 7020 Rocket fuel storage tank for ISRO
2 AA 2219 Cryogenic applications for VSSC, Trivandram.
3 DTD 5124 Ammunition hardware for O.F., Ambajhari.
4 DTD 5024 Weldable secondary structural Components
for O.F., Ambajhari

90% of the aluminium alloys used in the 'Agni', 'Prithvi'
and 'Akaash' missiles, which have been test fired
successfully, were supplied by Balco.

Cast House :
1) Properzi continuous rod casters
2) Twin Roll Continuous Caster along with SNIF degasser
(Maximum coil weight 10 tons, width 1750mm maximum)
3) Hydraulically driven semi continuous ingot Casting
machine.

Sheet Rolling Shop :


1) This is the only 4 high Hot Rolling Mill in India.The HRMof
Balco is having the capacity to roll the widest slab (up to
1560 mm) plates among all the HRM installed in India.

2) The HRM contains a vertical rolling stand for edge rolling
of the plates, which minimize edge cracking.


Balco is having a 4-High reversible rolling mill which
neither Hindalco nor Indal is having. The 4 - High mill helps
to minimize shape variation in sheets.


The salient features of the new Cold Rolling Mill
installed are given below:
1) Hydraulic automatic gauge control.

2) Shapes and flatness control.
3) Quick roll changing system.
4) Computerised controls with process sequence controls.


Corporate social responsibility initiatives
by Balco :

As a responsible corporate Balco has structured
programmes and projects as a part of Community
Development Initiatives. The operational area falls within 5
kms radius namely Dhondro, Rogbhary, Bhadrapara and
Lal Ghat. The thrust areas under which initiatives have been
undertaken are: Health, Education, Sustainable Livelihoods
and Social Mobilisation. In the area of health Balco mobile
medical team visits the four villages every week and renders
health check up facilities to villagers at their doorsteps and
medicines are distributed free of cost. The villages have
Swasth Mitras trained by Balco render first aid to the needy.
The health projects undertaken are: to develop awareness,
prevention and treatment of Tuberculosis, Malaria, Water
borne diseases and HIV AIDS awareness. Family Planning
and Malnutrition in children also forms a major project. In
addition to this Balco has also upgraded the PHC at Korba
by providing a new X ray Room and renovated the General
Ward.

In the area of village development and sustainable
livelihood we have programmes like Project Kadambari to
promote vegetable cultivation and floriculture in the villages.
Plantation of bio diesel generating Jatropa Plantation micro
credit management, revival of SHGs are some of the
projects under implementation. Mindsets of farmers are
being changed to cultivate cash crops and fruit bearing
plants. Rainwater harvesting and drinking water projects
are being given priority and are in the pipeline. In the area of
education, Non Formal Education classes are held in two of
the operational areas thrice a week. Also training of women
is being undertaken in collaboration with the Government
Polytechnic to empower women to earn their livelihoods.
Members of SHG have started production of Dona for which
marketing tie ups are in place.

Through above Projects and Programmes which are
participatory in nature Balco involves the local panchayats,
government agencies and NGOs to raise the living
standards of the people in a holistic and sustainable way.

The company takes every proactive and conceivable
steps towards prevention of pollution and conservation of
natural resources like water, energy and for reducing,
recycling and reusing of waste.

BALCO has been accredited with ISO: 14001 and
OHSAS: 18001 Certification. This has resulted in enhancing
the awareness in the field of environment as well as
occupational health and safety practices at work

Schools in Balco