BALCO gets state nod to commence new power plant

Bharat Aluminium Company Limited (BALCO), a subsidiary of Vedanta SSLT, announced that it has received approval from the state government of Chhattisgarh, to start a 1,200 megawatts (MW) captive power plant (4 units of 300 MW each).

The move will boost BALCO’s annual aluminium production capacity to 5.7 lakh metric tonnes from the current 3.5 lakh and also make Chhattisgarh, India’s third largest aluminium producer, said the company.

“We are very grateful to the Government of Chhattisgarh for the approval granted, at a time when we are celebrating our Golden Jubilee Year. It enables us to further ramp up our state-of-the-art aluminium smelter, thereby taking the aluminium capacity to 570,000 MT per annum. The power plant and Smelter will significantly contribute to the state exchequer and generate sizable employment besides triggering growth of downstream industry in the state. BALCO is a national asset and this new power plant will significantly aid in nation building,” said Ramesh Nair, CEO & WholeTime Director, BALCO.

The captive power plant, set up with an investment of about Rs 5,000 crore, is additional to two existing plants having the capacity of 270 MW and 540 MW each. Post operation, the plant, along with BALCO’s aluminium smelter, is expected to contribute about Rs 250 crore to the state exchequer in form of various taxes.

BALCO is the only producer of aluminium in Chhattisgarh and now with the said capacity augmentation, the state is all set to contribute for more than 25 percent of India’s total aluminium output.

BALCO commenced operations with an annual production of 1 lakh MT Aluminium in 1965.

The power project is also expected to give downstream industries an impetus to grow by nearly 4 times, which will increase the employment in the state. The company’s focus on community development will be further strengthened.