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NALCO to invest INR 900 crore in nuclear power business by 2012-13

Steel News - Published on Tue, 21 Feb 2012

PTI reported that state owned aluminum major NALCO plans to spend INR 900 crore by next fiscal on nuclear power ventures for which it had signed JV agreement with Nuclear Power Corporation of India Limited in November.

A senior company official said that as per the plan, the investments will be made on unit 3 and 4 of Kakarapar Atomic Power Station in Gujarat. Both the units are of 700 MW each.

The official further said that NALCO would be investing INR 300 crore in the current quarter on the project in lieu of its 26% stake while rest of the money will be invested in next fiscal. Both the units of KAPS entail a total investment of INR 7,000 crore and are planned to be commissioned by 2015.

The company, which currently has the permission of having only 26% stake in nuclear power ventures, is talking to the government for increasing the limit to 49%. In case of increase in its stake, the aluminum major would invest more money on the developments of both the units of KAPS.

Venturing into the nuclear power sector is part of NALCO\'s future growth plans under which it aims become a diversified metals mining and power producing company with an estimated turnover of over INR 25,000 crore by 2020.

As per the plan, the company would venture into power sector as an independent producer and once the generation capacity goes up substantially, the business will be hived off into a wholly owned subsidiary. The aluminum major produces about 1,200 MW for captive uses and has been planning to bid for upcoming ultra mega power projects.

The company had also announced to set up 50 MW wind mill in Andhra Pradesh for about INR 274 crore. Besides it is also looking to diversify into other metal segments like copper and uranium.

Last year, the company completed Phase II of its expansion at an investment of INR 4,402 crore. Post expansion, NALCO has an alumina refinery capacity of 2.1 million tonnes per annum and an aluminum smelter of 4.6 million tonnes per annum. It also has bauxite mining capacity of 6.3 million tonne.

(Sourced from Press Trust of India)

Posted By : admin on Tue, 21 Feb 2012
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