KalingaTimes Correspondent
Bhubaneswar, June 4: Orissa based National Aluminium Company Limited (Nalco), which was recently conferred the Navratna status, has drawn up ambitious growth plans involving massive investment of around Rs 40,000 crore in next five 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 the country, the company said here on Wednesday.

The company, 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 Rs 4092 crore and the same is scheduled to be completed by 2008 end.

Now, plans are afoot for 3 rd phase expansion, which is likely to entail expenditure to the tune of Rs.6000 crore. Under this expansion, the bauxite mining capacity shall be enhanced to around 90 lakh tonnes, alumina refining to 30 lakh tonnes, aluminium smelting to 6.3 lakh tonnes and power generation to 1700 MW per annum.

The proposed third phase expansion is likely to entail an expenditure to the tune of Rs 6000 crore.

“Under this expansion, the bauxite mining capacity shall be enhanced to around 90 lakh tonnes, alumina refining to 30 lakh tonnes, aluminium smelting to 6.3 lakh tonnes and power generation to 1700 MW per annum,” the company said

Besides, the company also has plans to set up at least two new projects in the country.

A mines and refinery complex is being planned in Andhra Pradesh in which the bauxite mines capacity will be 42 lakh tonnes, while the refinery will have a capacity of 14 lakh tonnes.

The draft memorandum of understanding for the project is under negotiation with the Andhra Pradesh government. The project will involve an investment of Rs 7000 crore.

In Orissa, a smelter and power complex has been planned in the Ib valley in Jharsuguda district at an investment of Rs 8500 crore.

This project envisages a smelter of 5 lakh tonne capacity and a coal-based power plant of 1260 MW capacity.

Pre-feasibility report fore the project has been finalised by Engineers India Limited (EIL), and the company has already submitted an application for allotment of water to the State government.

About overseas project, the company said that it has already signed an MoU with the Government of Indonesia to set up a 5 lakh tonne smelter and a 1250 mw captive power plant in that country. The company plans to invest around Rs 14,000 crore in this greenfield project.

Besides, the company is exploring the possibilities of setting up a smelter and power plant in South Africa at an investment of around Rs 16,000 crore.

In Iran , a 3.1 lakh tonne smelter has also been planned, in two phases, as a joint venture with ALPHA (in which Kerman Development Organization is the major partner). The MoU for the project was signed in March this year. The project cost will be approximately Rs.8000 crore.

“The foreign projects are not exclusive, rather these are being pursued simultaneously, with an objective that anyone or two of these would be ultimately taken up on the basis of viability and time required,” the company said.

As regards other projects, Nalco has plans to set up an Aluminium Park in Angul, as a joint venture with Orissa Industrial Infrastructure Development Corporation (IDCO). For this 500 acres of land is being acquired for the project in which Nalco and IDCO shall take care of basics like infrastructure, communication and power supply.

The proposed upstream industries shall go for products like caustic soda, aluminium fluoride, CT Pitch and CP Coke, while downstream industries shall explore the possibilities of castings, extrusions, aluminium conductor, aluminium plates and rounds, besides other products.

At the same time, Bharat Earth Movers Limited (BEML) and Nalco have entered into an agreement to collaborate for the production of aluminium rail wagons. Aluminium rail coaches and metro coaches shall be taken up subsequently.

As per the agreement, the products would be jointly developed by these two leading PSUs and Nalco would supply the aluminium extrusions after conversion from its billets and ingots through a third party. The aluminium wagons and coaches have several advantages like light weight, higher carrying capacity, environment friendliness, lower life cycle cost etc.

Besides, expression of interest has also been invited from competent parties to set up a cement plant based on fly ash of Nalco's power plant at Angul. Offers of two bidders, Sree Cement and Cement Manufacturing Company have been found acceptable and these two have been shortlisted for joint venture.

The project will involve an investment of Rs 300 crore. Bidders need mining lease for limestone in Orissa to go ahead with the project and have submitted applications.

In addition to all these, several projects are in the pipeline at various stages aimed at backward integration to ensure smooth and economic sourcing of raw materials, according to the company.