The proposal is to set up fifth stream with a capacity of 1 million tonnes per annum (MTPA) as well as steam-cum co- generation power plant (SPP) of 18.5 MW capacity.
"The Environment Ministry has given environment clearance for the third phase expansion of NALCO in Odisha with some specific conditions," a senior government official said.
The project requires 25.09 hectare of land, which the company already has under its possession. Bauxite, the ore required for the plant will be sourced from NALCO's own Panchpatmali mines.
With the proposed expansion, the NALCO's alumina production capacity will increase from 2.27 MTPA to 3.27 MTPA, while SPP capacity will expand from 92.5 MW to 111 MW.
The company, which has abundant supply of quality bauxite from captive ore and adequate manpower, is expanding production capacity as it sees export opportunity of additional 1 million tonnes of alumina from 2021 onwards.
Currently, NALCO sells part of its alumina produced within India and exports the remaining quantity. It exported 1.22 million tonnes of alumina during 2015-2016.