Odisha-based Navratna PSE Nalco has announced investment of Rs 20,550 crore for expansion of its alumina refinery at Damanjodi and setting up an aluminium park at Angul in the state.
"Since the entire value chain of Nalco, starting from bauxite mining to aluminium making is based in Odisha, our major focus is to strengthen the investment climate of the state thereby boosting Odisha's industrial upsurge," said T K Chand, CMD, Navratna PSE Nalco.
Claiming that Nalco played a major role in Odisha Investors' Meet at Make in India Week in Mumbai, the aluminium major said it was committed for boosting industrialisation in the state.
Addressing representatives of different industries, entrepreneurs, bureaucrats, delegates from within and outside the country at the investors' meet yesterday, Chand said "Besides being rich in mineral and water resources, Odisha has good road, rail and port connectivity. On the ease of doing business index, the state is bracketed with the best."
"Moreover, the entire state is dotted with engineering and management colleges, diploma and ITI institutes to source skilled manpower. At the same time, the recent 'smart city' tag pinned on Bhubaneswar by the Centre is an added advantage," Chand said.
Stating that the current slump in international metal market is likely to continue for some time due to structural adjustment factors in different economies across the globe, Chand said, adding Indian industries need to review their cost structure to remain competitive.
"Given the tough going in the market, Nalco has developed a new corporate plan with a new business model that will withstand market onslaughts and keep the company afloat with profitability even in the slump cycle," he added.
The Nalco CMD said within one year, the company has added
captive resources worth Rs 80,000 crore, including the Utkal D and E Coal blocks with 200 million tonnes of coal at Angul and Pottangi Bauxite Mines having a deposit of about 75.22 million tonnes.
"If we tap these resources in time, for the next five decades, we shall have no resource crunch for our core functions," Chand said, adding for 2016-17, Nalco has signed an MoU with the Ministry of Mines for higher targets.
As per the MoU, the target for revenue from operations, excluding excise duty, has been fixed at Rs 7,100 crore. The MoU has also set higher targets for production of both alumina and aluminium as compared to the previous fiscal.
Nalco has set an annual production target of 21.30 lakh tonnes of alumina and 3.85 lakh tonnes of aluminium.
The company had produced 19.53 lakh tonnes of alumina and 3.72 lakh tonnes of aluminium in 2015-16.
It has also set a Capex target of Rs 1,021 crore, which includes projects like development of Utkal D and E Coal blocks, Wind and Solar Power Plants of 170 MW, preliminary work for one million tonne capacity refinery at Damanjodi, Angul Aluminium Park, Caustic Soda Plant and other modernisation activities worth more than Rs 300 crore.
"A new business model has been introduced to enable us strengthen the company's business by leveraging its core competency in mining, metals and energy sectors, through modernisation, Greenfield and Brownfield expansions, upstream and downstream integration," Chand said.
Besides, the model also envisages diversification into green power, independent power plants, caustic soda, rare metal like titanium, revenue from waste like recovery of iron from red mud waste and also developing new revenue segment that are immune to downturn in metal market, he added.
