Nalco expects nod for Rs 4000 cr spread soon

With the privatisation of Nalco put to the backburner following the change of guard at the Centre, the company is now looking forward to an early clearance of its Rs 4000 crore expansion project.

Meanwhile, the Centre has indicated that the expansion project may get the final nod of the cabinet by July next.

This indication was received during a recent meeting between Orissa chief minister Naveen Patnaik and Union coal and mines minister Shibu Soren at new Delhi recently.

The second phase expansion project of Nalco is now awaiting environmental clearance before being sent to the cabinet for final approval. The project was earlier cleared by the public sector investment board.

According to a release by the chief minister's office, Soren has informed Patnaik that environmental clearance is likely to be received shortly after which a formal proposal will be placed before the cabinet for approval.

"The process will be completed by July", the release claimed. Patnaik had urged Soren to see that the expansion project is cleared at the earliest.

The second phase envisages expansion of bauxite mines capacity to 63 lakh tonne, alumina capacity to 21 lakh tonne, aluminium capacity to 21 lakh tonne, aluminium capacity to 4.60 lakh tonne and power plant to 1200 mw.

Under the first phase of expansion, the company already increased its mines capacity from 24 lakh tonne of bauxite to 48 lakh tonne and that of alumina refinery from from 8 lakh tonne to 15.75 lakh tonnes. It is now on the threshold of completing the full expansion of smelter from 2.3 lakh tonnes to 3.45 lakh tonnes and captive power plant from 840 MW to 960 MW.

Patnaik during his recent trip to Delhi met prime minister Manmohan Singh and a host of other Union ministers including Soren.

During his discussion with prime minister Manmohan Singh, Patnaik reiterated the demand for special category status for Orissa. In turn the prime minister, the release claimed, has assured that Orissa will continue to receive the attention of the Centre for its developmental projects.

Patnaik also sought the intervention of the prime minister to expedite the establishment of the regional AIIMS at Bhubaneswar for which the state government has already handed over land.

He also met Union health and family welfare minister A Ramdoss and requested allocation of funds for early completion of the AIIMS project.