NALCO To Invest Rs 37,000 Cr Over The Next 5-7 Years

Bhubaneswar: National Aluminium Company (NALCO) Ltd. is planning to invest more than Rs 37,000 crore over the next 5-7 years for expansion of existing facilities, setting up of new smelter unit overseas, development of mines and diversification in power.

The Chief Managing Director (CMD) of the company Tapan Kumar Chand said that the company is undertaking the investment plan to reduce operational expenses and to beat the depressed market realizations. He also hinted that NALCO is in advanced stages of discussions to explore the possibility of setting up smelter of 0.5 Million Ton Per Annum (MTPA) in Iran. The proposed smelter will come up at an estimated cost of Rs 12,000-13,000 crore.

NALCO is also planning to set up a new unit at Angul in Orissa. The 0.5 MTPA smelter unit will come up at an estimated cost of Rs 12,000 crore. The allotment of Utkal D and E coal blocks and the Pottangi mines is also expected to help the company, according to Chand. Around Rs 300 crore will be spent towards development of these mines, he added.

He also said that further expansion plans include setting up of a one MTPA alumina refinery at Damanjodi in Orissa at an estimated cost of Rs 6,000 crore

Brownfield expansion and tie-ups with low power producers overseas is the company's two-prong strategy to wriggle out of subdued market conditions. NALCO expects 6-7 per cent overall cost benefit through this exercise.

Because of lower costs, currently around 56 per cent of the country’s aluminum requirement is met through imports. Chand also said that the company is weighing options of setting up smelter projects in Oman and Qatar.