Mines Minister B K Handique today said the Rs 4,402-crore expansion project of the National Aluminium Corporation (Nalco) will be completed shortly.
"The ongoing second phase expansion project of Nalco at an investment of Rs 4,402 crore is nearing completion. One unit of 120 Mw captive power plant out of two units, has been commissioned since August, 2009," Handiqe said in a statement after chairing the second meeting of the Consultative Committee attached to the Ministry of Mines.
The company went ahead with its expansion programme at a time when other companies had undertaken cost cutting measures in the backdrop of the economic recession and consequent downturn in the auto sector hitting aluminium industries hard, he said.
He said the company was also exploring possibilities to set up new smelters--used for extracting metals from their ores--and power plants in Indonesia and Iran.
"...At present, the Company has substantial cash reserve as well as surplus alumina capacity. For value addition...And for strengthening its market presence, the company is working out the possibility of setting up a green field smelter and power plant... Indonesia and Iran are the shortlisted destinations, due to availability of coal and cheap gas based power," he said.
The company has a high cash reserve of around Rs 3,500 crore.
More From This Section
The navratna firm recently got approval for spending about Rs 22,000 crore in setting up two mega projects, one each in Andhra Pradesh and Orissa.
It will set up a 5-lakh tonne aluminium smelter in Jharsuguda, Orissa along with a 1,260-Mw captive power plant at an estimated investment of Rs 16,345 crore.
Also, it will be installing an alumina plant with an annual capacity of 1.4 million tonnes in Visakhapatnam, Andhra Pradesh, at a consideration of about Rs 5,700 crore.
"...The company has also signed Memorandum of Understanding with Nuclear Power Corporation of India for foraying into nuclear power production in a joint venture," Handique said.