Indian blue chip public sector company National Aluminium Company (Nalco) has recently got approval from the finance ministry for the installation of the eighth unit of 120 megawatt for its captive power plant (CPP).
The company had already obtained environmental clearances and a clearance from the Central Electricity Authority for setting up of the unit. However, the final approval was still pending, company sources said.
The installation of the eighth unit would make the total installed capacity in the company to 960 MW. Moreover, the eighth unit would also help the aluminum major to meet its energy shortfall of 116 MW.
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According to the company, major facilities such as chimney, EOT crane, compressor and crusher plant required for the eighth unit has already been incorporated in the scope of the seventh unit which would be completed by May 2002. "However, an additional 16 km long broad gauge line would be required for the eighth unit," sources said.
As per the available data, the present cost of the plant (August 2000-price level) would be around Rs 497.50 crore while the cost per megawatt would work out to be Rs 4.15 crore.
Nalco approached the government in September 1997 with its proposal for expansion of its smelter capacity from 2,30,000 tonne per annum (TPA) to 3,45,000 TPA and power plant capacity from 720 MW to 960 MW.
However, the government cleared the smelter expansion and additional one unit of 120 MW of CPP and asked the company to seek technical opinion regarding the installation of the second unit of 120 MW.
Accordingly, the company appointed the National Thermal Power Corporation (NTPC) for independently examine the need for installation of one more unit of 120 MW.
Nalco has recorded a sales turnover of Rs 2,142.32 crore during 1999-00 and is a major exporter of alumina.