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Nalco to invest Rs 12,000 cr in new smelter

Business Standard:  December 19, 2016

Bhubaneswar: National Aluminium Company (Nalco) plans to set up a new greenfield smelter in Odisha at Kamakhyanagar. 

The site chosen for the new smelter is close to Gajamara in Dhenkanal district where Nalco is teaming up with power utility NTPC for setting up a 2,400 Mw coal-fired power station. The power project, estimated to cost Rs 14,000 crore, will be implemented by a joint venture company NTPC-Nalco Power Company.

The proposed smelter’s capacity is pegged at 0.6 million tonnes per annum. Power generated by the super thermal power station will feed this greenfield smelter.

Confirming the development, Nalco Chairman and Managing Director TK Chand said, “We need around 1,400 acres of land for the new smelter. Idco (Odisha Industrial Infrastructure Development Corporation) already has 1,500 acres of land ready at Kamakhyanagar, so we hope to receive possession of this patch of land. Also, the smelter’s location will be around 45 km from Gajamara, the proposed site of the 2,400 Mw power plant. That way, it will be easier for us to evacuate power and feed the smelter.”

The smelter’s location was also advantageous as water would be easily available at Gajamara, he said. The smelter is expected to go on stream in four years. This state-of-the-art facility will use the latest aluminium smelting technology.

Nalco is also going in for brownfield expansion of its existing 0.46 mtpa smelter project at Angul. The navratna company has planned capital expenditure of Rs 10,000 crore to add 0.5 mtpa capacity to this smelter. Land and associated infrastructure needed for this smelter’s expansion is in place. With the expansion, Nalco hopes to prune cost of production and achieve economies of scale. The company will also deploy the latest technology to ensure reduced energy consumption and high productivity.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.