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November 22, 2008


Nalco to invest INR 40,000 crore in expansion projects

Kalinga Times reported that Orissa based National Aluminum Company Limited has drawn up ambitious growth plans involving massive investment of around INR 40,000 crore in next 5 years. The proposed investments would be made in alumina smelter and power projects in Indonesia, South Africa and Iran and Brownfield and Greenfield growth projects within India.

Nalco, which now enjoys more managerial powers and commercial autonomy to chart its own course in the world market, has decided to start its third phase expansion after the completion of the second phase expansion work. The second phase expansion is under implementation at an investment of INR 4092 crore and the same is scheduled to be completed by 2008 end.

Now, plans are afoot for 3rd phase expansion, which is likely to entail expenditure to the tune of INR 6000 crore. Under this expansion, the bauxite mining capacity shall be enhanced to around 90,000 tonnes, alumina refining to 30,000 tonnes, aluminum smelting to 630,000 tonnes and power generation to 1700 MW per annum. The proposed third phase expansion is likely to entail an expenditure to the tune of INR 6000 crore.

Besides, Nalco also has plans to set up at least two new projects in India. A mines and refinery complex is being planned in Andhra Pradesh in which the bauxite mines capacity will be 4.2 million tonnes, while the refinery will have a capacity of 1.4 million tonnes. The draft MoU for the project is under negotiation with the Andhra Pradesh government and the project will involve an investment of INR 7000 crore.

About overseas project, Nalco has already signed a MoU with Indonesia to set up a 500,000 tonne smelter and a 1250 MW captive power plant. It plans to invest around INR 14,000 crore in this Greenfield project. Besides, it is exploring the possibilities of setting up a smelter and power plant in South Africa at an investment of around INR 16,000 crore.

In Iran, a 310,000 tonne smelter has also been planned, in two phases, as a JV with ALPHA. The MoU for the project was signed in March 2008. The project cost will be approximately INR 8000 crore.