On December 31, there was a breach in the embankment of one of the ash ponds of Nalco's 720mw coal-based captive power plant. This caused flash floods in Nandira, a tributary of River Brahmani. As many as 12 nearby villages were inundated affecting about 700 people because of the flash floods.

The company has appointed a committee under the chairmanship of its director (project and technology) KS Banerjee to enquire into the cause of the damage, assess the amount of damage and suggest remedial measures for avoiding future recurrence.

According to a Nalco spokesman, chairman and managing director P Parvathisem along with other directors have visited the site to assess the situation.

Nalco has taken immediate relief measures including the supply of food materials in consultation with the district administration. Drinking water facilities have been extended to the affected villages by Nalco and the Talcher Thermal Power Station. The spokesman said a joint team of Nalco and district revenue officials would assess the total loss by undertaking a house to house survey as it has been decided, in principle, to compensate the damages.

The compensation to affected people would be disbursed by January 31, he added.

The problems of ash deposit on surrounding agricultural land will be looked into for remedial measures by experts from the Orissa University of Agriculture & Technology, Orissa Pollution Control Board and revenue officials, the spokesman said.

According to him, Nalco has also offered to undertake renovation of the affected village roads and water tanks and wells, while as an immediate measure sanitation and disinfection of tanks and wells is being carried out by the company in association with district medical officials.