Nalco plans huge investment for capacity expansion

Bhubaneswar: National Aluminium Company (Nalco), a Navratna company under the ministry of mines, plans to invest about Rs 40,000 crore in a host of greenfield and brownfield expansion projects both within the country and abroad over the next four to five years, said a company release.

The ambitious growth plans include the establishment of smelter and power projects in Indonesia, South Africa and Iran. On the domestic front, the company is planning a greenfield mine and refinery complex in Andhra Pradesh at an investment of Rs 7,000 crore.

The company is in talks with the Andhra Pradesh government on the draft memorandum of understanding (MoU) for the project. In Orissa, home to Nalco's operations for the last three decades, the company plans to set up a new smelter and power complex at IB valley in Jharsuguda district at an investment of Rs 8,500 crore. The project includes a smelter with a capacity of 5 lakh tonne and a coal-based 1,260 mw power plant.

EIL has finalised the pre-feasibility report. Nalco recently submitted an application to the Orissa government for allotment of water to the project.

The company has successfully executed the Rs 3,600-crore first phase expansion of its facilities at Angul and Damanjodi in Orissa. It is implementing the second phase at an investment of Rs 4,092 crore and this is scheduled to be completed by 2008-end.

Plans are also afoot for the third-phase expansion entailing an investment of about Rs 6,000 crore. In the third phase, the bauxite mining capacity will be enhanced to about 90 lakh tonnes, alumina refining to 30 lakh tonnes, aluminium smelting to 6.3 lakh tonnes and power generation to 1,700 mw per annum.

The company is also pursuing several projects overseas simultaneously. Nalco signed an MoU with the Indonesia government in the beginning of this year for setting up a 5-lakh tonne smelter and 1,250 mw captive power plant in that country at an investment of about Rs 14,000 crore.

The company is exploring the possibilities of setting up a smelter and power plant in South Africa at an investment of about Rs 16,000 crore. Similarly, it is planning a 3.1-lakh tonne smelter in two phases, as a joint venture with ALPHA (in which Kerman Development Organization is the major partner) in Iran. The company has already signed the MoU for the Rs 8,000-crore project.

Besides, the company has initiated the process of setting up a cement plant. It has already invited expressions of interest (EoI) from competent parties to set up the cement plant, which will utilise fly ash from Nalco's power plant at Angul. Sree Cement and Cement Manufacturing Company (CMC) have been shortlisted for the joint venture. The project will involve an investment of Rs 300 crore.

Meanwhile, contrary to the announcement of National Aluminium Company (NALCO) management to go for a new smelter plant at Jharsuguda in Orissa, the minister of state for mines, chemical and fertilizer B K Handique said the company has no plans to set up a smelter in the state.

The minister was talking to reporters at Nalco's smelter complex at Angul. He, however, hinted at brown field expansion of Nalco facilities in the state.