The Odisha government today urged the ancillary and downstream companies to invest in the state's aluminium sector and assuredinvestors of uninterrupted supply of raw materials for their projects.
Ancillary and Downstream Opportunities in Aluminium conference was organised here by the Industries Department of Odisha,which was attended by more than 70 downstream and ancillary companies from all over India.
Besides, senior officials of thestate government and country's three major aluminium companies Nalco, Hindalco and Vedanta also took part in the conference.
Speaking at the conference, Sanjeev Chopra, Principal Secretary (Industries) said the investors must be ready to grab the opportunities that the upcoming aluminium park at Angul will provide.
"Odisha is a mineral rich state and by developing world class infrastructure we aim to provide an ideal business ecosystem for all the related sectors to flourish.
"We have already received several investment proposals for the Aluminium Park in Angul andwe aim to create around 15,000 job opportunities through the project," he said.
Investments in aluminium downstream sector have been gaining momentum in Odisha.
Over the past five years, the state has attracted investments worth Rs 893 crore, including proposals by Bahrain -based Midal Cables and Power Grid Corporation of India's (PGCIL) subsidiary Grid Conductors.
Four out of the five proposals drawn are for the aluminium park developed jointly by Nalco and IDCO at Angul, Chopra said.
India's aluminium consumption is growing at a compound rate of 15 per cent (year-on-year), making it one of the largest consumption markets in the world.
The demand for aluminium expected to rise further, Chopra said, adding Odisha is also offering special incentives to companies looking to set up units.
With Odisha is one of the leaders in ease of doing business and single-window clearance procedure, and the state government is confident of providing approvals within 30 days from the date of application, he said.
As Odisha is home to leading firms like Nalco, Hindalco and Vedanta Ltd, which has analuminium refinery smelter in the state, the downstream industry need not worry about supply raw materials, Chopra further said.
For the Aluminium Park at Angul, the state government has already received investment proposals in downstream space of conductors, extrusions, castings and foils to name a few, he added.
The extent of these investments diversifies to other value added products catering to white goods, auto components, construction and other allied industries, Chopra said.
"There is a huge opportunity for downstream products and there is a ready market available for it. Industrywill be getting cleared land with facilities like power and training and other requirements of industry," Nalco CMD T K Chand said.
"You (the downstream industry) will have cost benefit of Rs 10,000 per tonne of raw material as there will be no inventory costs andmaterial will be fully assured to downstream firms," Chand said, adding state-owned Nalco is ready to provide hand-holding to all the downstream and ancillary units.
"Odisha accounts for 50% of the aluminium production in the country. The aluminium refining capacity has gone up to 5.775 million tonnes per annum (MTPA) from 0.80 MTPA and smelting capacity to 2.634 MTPA from 0.509 MTPA," S K Mohanty, CEO, Angul Aluminium Park, said.
Availability of abundant raw material from Nalco, Vedanta will be very crucial for the downstream aluminium and ancillary industry.
"With 25% of coal and 60% of bauxite in the state,there cannot be another state which can be aluminium capital. We have to create success story of consumption and demand of aluminium in the state," Abhijit Pati, CEO (Aluminium), Vedanta Limited said.
In this direction, the downstream industry will also help generate huge employment potential in the state.
Also, R&D impetus will further boost growth in the sector.
With an investmentof Rs 180 crore on the infrastructure of the project, the aluminium park will provide world class logisticsand infrastructure facilities, an exclusive training centre, Aluminium Product Evaluation Centre (APEC), furnished with a full-fledged tool room, testing, simulation and evaluation facilities, processing hall and prototype development facility to foster innovation and deliver excellence in terms of quality.
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