The ambitious growth plans include setting up of smelter and power projects in Indonesia, South Africa and Iran.
Among the domestic projects, the company is planning a greenfield mines and refinery complex in Andhra Pradesh at an investment of Rs 7000 crore. The capacity of the bauxite mines will be 42 lakh tonne and the refinery 14 lakh tonnes of alumina per annum. Talks are going on with the Andhra Pradesh government regarding the draft memorandum of understanding (MoU) for this project.
In Orissa, which is the home to Nalco's operations for last three decades, the company plans to set up a new smelter and power complex at Ib valley in Jharsuguda district at an investment of Rs 8500 crore. The project includes a smelter of 5 lakh tonne capacity and a coal-based 1260 Mw power plant. Pre-feasibility report has been finalised by EIL. Nalco has recently submitted an application to the Orissa government for allotment of water to the project.
It may be noted the company has successfully executed Rs 3600-crore first phase expansion of its existing operations at Angul and Damanjodi in Orissa, and is currently in the process of implementing second phase expansion at an investment of Rs 4092 crore. It is scheduled to be completed by the end of 2008. Plans are afoot for third phase expansion entailing an investment of about Rs 6000 crore.
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In the third phase expansion, the bauxite mining capacity will be enhanced to about 90 lakh tonne, alumina refining to 30 lakh tonne, aluminium smelting to 6.3 lakh tonne and power generation to 1700 Mw per annum.
Alongside the company is pursuing several overseas projects simultaneously. Nalco signed an MoU with the government of Indonesia for setting up a 5-lakh tonne smelter and a 1250 Mw captive power plant in that country at an investment of about Rs.14,000 crore in the beginning of this year.
It is exploring the possibilities of setting up a smelter and power plant in South Africa at an investment of about Rs.16,000 crore. Similarly, a 3.1-lakh tonne smelter is being planned in two phases, as a joint venture with ALPHA (in which Kerman Development Organisation is the major partner) in Iran. The company has already signed the MoU for this Rs 8000 crore project.
Besides, the company is in the process of setting up a cement plant in the joint sector. It has already invited Expression of Interest (EoI) from competent parties to set up the cement plant based on fly ash of company's power plant at Angul. Offers of Sree Cement and Cement Manufacturing Company (CMC) have been shortlisted for joint venture. The project will involve an investment of Rs 300 crore.