JSW gearing up for Vizag project

Starts preparatory works on Rs 9000cr aluminium plant

Resistance from some of the political parties and local tribals on bauxite mining notwithstanding, JSW Aluminium Limited has started the preparatory works to implement the Rs 9,000-crore aluminium project in Visakhapatnam district.

JSW company officials recently met the railway divisional manager at Visakhapatnam to discuss the laying of a 13-kilometre-long separate railway track to bring bauxite ore and other material directly to the plant. Bauxite ore will be transported from the Similiguda Railway Station on the Kirandol-Kothavalasa line to the plant site.

"Transportation of bauxite ore to the plant site requires a new 13-kilometre railway track between the Kothavalasa station and the plant site, for which we have started negotiations with railway officials," Anunay Kumar, director (business development), JSW Limited, told Business Standard.

The laying of the new railway track would involve an investment of around Rs 70 crore, which would be borne by the company, he added.

JSW group senior representatives also met Visakhapatnam port officials to discuss the allotment of a berth to the company exclusively for alumina exports and caustic soda imports. Vizag port is constructing two berths exclusively for alumina companies.

"We plan to develop the handling facility at the port with our own funds as we will be importing caustic soda and exporting alumina through the Vizag port. We have met port officials in this regard," Kumar said.

As part of the aluminium project, JSW is also contemplating setting up a 600mw power plant in Visakhapatnam district, and is in negotiations with Coal India for supply of coal for the power plant.

"In the first phase, we will set up a 70mw captive power plant for which we require coal from Singareni or Thalcharu coal mines," he said.

The JSW team also met local revenue officials with regard to the government land. "The government has already identified about 4,000 acres of land at Sabhavaram mandal near Visakhapatnam for our plant. The process of handing over the land to us would begin soon," Kumar said.

According to him, the company has applied for all statutory clearances and approvals as required under various laws.

"If everything goes well, we will start the first phase work on alumina refinery and a cogeneration plant from April 2007, and complete it within a period of 36 months at an investment of around Rs 3,000 crore," he said.