Date:08/06/2008 URL: http://www.thehindubusinessline.com/2008/06/08/stories/2008060850900200.htm

Nalco embarks upon Rs 40,000-cr expansion plan

Our Bureau

Bhubaneswar, June 7

In a bid to emerge as a company of global repute, public sector aluminium major National Aluminium Company Ltd (Nalco) has announced major expansion plans with an estimated investment of over Rs 40,000 crore during next five years.

The company, which was conferred the coveted Navratna status last month, said the growth plans include brownfield and greenfield growth projects within the country, and smelter and power projects in Indonesia, South Africa and Iran.

The company has started planning for third phase of expansion of its existing facilities in Orissa at an investment of Rs 6,000 crore. The work on this would begin by end of this year. The third phase of expansion will help the company increase its bauxite mining capacity to around 90 lakh tonnes, alumina refining to 30 lakh tonnes, aluminium smelting to 6.3 lakh tonnes and power generation to 1700 MW a annum.

The company is holding negotiations with Andhra Pradesh Government to set up a mines and refinery complex at an investment of Rs 7,000 crore. The bauxite mines capacity will be 42 lakh tonnes, while the refinery will have a capacity of 14 lakh tonnes.

In Orissa, a smelter and power complex has also been planned in Ib valley in Jharsuguda district at an investment of Rs 8,500 crore. This project envisages a smelter of 5 lakh tonne capacity and a coal-based power plant of 1,260 MW capacity.

The company has already signed a memorandum of understanding with the Indonesian Government to set up a 5-lakh tonne smelter and a 1,250 MW captive power plant with investment to the tune of Rs 14,000 crore. Besides, Nalco is exploring possibilities of setting up a smelter and power plant in South Africa at an investment of around Rs 16,000 crore.

In Iran, a 3.1-lakh tonne smelter has been planned in two phases, as a joint venture with ALPHA (in which Kerman Development Organisation is the major partner). The MoU for the project was signed in March this year. The project cost will be approximately Rs 8,000 crore, the company said.

“The foreign projects are not exclusive, rather these are being pursued simultaneously, with an objective that any one or two of these would be ultimately taken up on the basis of viability and time required,” according to the company.

Besides, the company plans set up an Aluminium Park in Angul district of Orissa as a joint venture with Orissa Industrial Infrastructure Development Corporation.

At the same time, the company has also entered into an agreement with Bharat Earth Movers Ltd to collaborate for the production of aluminium rail wagons. It also plans to set up a cement plant based on fly ash of its plant at Angul.