Hindalco may raise Sidhi project investment to Rs 18,000 crore

Aditya Birla group company asks MP govt to speed up clearances

Hindalco,Aditya Birla group flagship company, is upbeat on its Sidhi Greenfield project in Madhya Pradesh and plans to scale up its proposed investment from Rs 7,700 crore to Rs 18,000 crore in phase "�II, provided the state government extends all support in getting the necessary clearances.

Clearance has become a big issue for the investors in Madhya Pradesh despite the 'Single Table' concept floated by the CM Shivraj Singh Chauhan.

Confusion over which body would clear projects over Rs 100 crore or more, persists.It is generally believed that Apex Empowerment Committee on Investment considers such projects.

At the same time, an investment promotion board headed by the CM and principal secretaries of at least seven department as its members, has also been created in which the state industries minister has no role to play. The board is going to meet for the first time on May 30.

Speaking to Business Standard D Bhattacharya, Managing Director of the company yesterday in Bhopal said, "The investment will go up to Rs 18000 crore the highest ever in Madhya Pradesh from a private company in aluminum sector. We expect the government to push the process of "single table" so that first phase of the project will take shape soon and pave the way for the next phase."

The aluminum major yesterday signed a pact with the state government for the phase-I of its Aluminum Smelter project of capacity 3.5 lakh tonne per annum. The company has also joined hands with Essar for Mahan Coal Blocks in Madhya Pradesh to feed a 750-MW thermal power project.

After completion of the second phase the capacity of the proposed plant will double to 7 lakh tonne per annum and it would be the biggest aluminum plant in India.

Presently Aditya Birla group has invested Rs 6000 crore in its viscose staple fibre plant in Nagda (near Ujjain) with a workforce of 5500 and 18000 indirect jobs.

The company is in talks with a foreign technology provider for smelter equipment supplies for the captive power plant and coal mine. No aluminum plant can go streamline without captive power plant. The company has yet to hold talks with the state government on captive power plant for grid connectivity.

The company also has to consider the poor infrastructure in the area and much will hinge upon the political stability,speedy construction of necessary infrastructure like roads, bridges, power substations etc.Talks are also at nascent stage on statutory and non-statutory clearance, incentives and subsidies offered for the mega project.

Land acquisition is a major hurdle for the company. It requires at least 4000 acres of land for the plant against the government cap on freehold land of 20 acres as mentioned in industrial promotion policy.