State-run aluminium maker National Aluminium Company (Nalco) has lined up Rs 17,000 crore investments to enhance capacity, foray into new areas, and increase coal production.
State-run aluminium maker National Aluminium Company (Nalco) has lined up Rs 17,000 crore investments to enhance capacity, foray into new areas, and increase coal production. Nearly half of the proposed investment will be made in association with joint venture partners.
On its own, it will invest Rs 6,000 crore for setting up downstream projects at Kamakhyanagar in Dhenkanal district of Odisha. The company has already identified the land for the project and hope to commission the project within three years of receipt of all statutory clearances.
With an investment of Rs 5,540 crore, which will also be funded by the company, Nalco is setting up a new alumina refinery stream that is likely to be commissioned in 2021-22. “Once operational, this will ramp up Nalco’s production figures and thus, help in enhancing profitably,” a senior company official said.
Through joint venture partner Mishra Dhatu Nigam (MIDHANI), Nalco will set up a high-end aluminium alloy plant with Rs 4,450-crore investment. The Andhra Pradesh government has already allotted 120 acres for the project.
“With Niti Aayog already giving clearance for the project in March 2019, the financial closure plan of the project is being worked out, and is being finalised between both the organisations before taking to the Board for approval of the JV,” the source said.
Again, in a joint venture with Gujarat Alkalies and Chemicals (GACL), the company is setting up a caustic soda plant in Gujarat with Rs 2,000-crore investment. The land for the project has been transferred in favour of the joint venture company.
“The project has received environmental clearance. Land development, piling works and others are in full swing. Major packages of the caustic soda project and captive power plant have been awarded. The plant is expected to be operational by the second quarter of 2021-22,” the source said.
Nalco had clocked Rs 1,732 crore net profit in 2018-19, up by 29% over the previous fiscal. Its Rs 11,386 crore turnover in FY19 was the highest-ever.