Odisha to offer 188 acres for Nalco’s Rs. 5,500-crore downstream project.

The Odisha government is on course to offering 188 acres of land to National Aluminium Company (Nalco), for its proposed Rs. 5,500-crore downstream complex at Kamkhyanagar in Dhenkanal district of the State.

Finalisation of land requirements and other details are expected by the end of February.

This is billed to be one of the largest investments in the metal downstream space in eastern region and in Odisha as well.|

According to government sources, Nalco, in its proposal, has sought the land in Markata and BS Sasan areas of Kamkhyanagar. Based on the report, the Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) has engaged Engineers India Ltd (a Navratna PSU providing engineering and related technical services) to do the land assessment and submit a report on the technical and other requirements.

The report is expected next month, post which IPICOL will make its recommendations.

Nalco will have to purchase the land from the Odisha Industrial Development Corporation, government sources said.

Clearances from different approval committees of the State have been received between September and November last year. According to Sanjeev Chopra, Principal Secretary, Industries Department, Government of Odisha, the State government is “actively promoting” investments in the downstream metal business across steel, stainless steel and aluminium sectors.

“The High Level Clearance Authority (headed by the Chief Minister, Naveen Patnaik) has already approved the (Nalco) project and land assessment is underway. This will be followed by land acquisition. Nalco’s proposed downstream unit is expected to generate over 1,700 jobs and also give a fillip to establishment of ancillary units around it,” Chopra told BusinessLine.

For the planned downstream complex, Nalco expects to complete the project within 48 months of taking possession of land.

The complex will house facilities for aluminium foils, rolled products and extrusions, with a combined capacity of 170,000 tonnes per annum. Production of aluminium alloy wheels, used in automobile industry, will also happen here, as per Nalco’s plans.

The Navratna PSU’s enhanced focus on downstream applications comes at a time when its alumina arm is contributing handsomely to its gross turnover; and also Ebitda.

HBL