GMDC to invest in Nalco's Gujarat aluminium project

Gujarat Mineral Development Corporation (GMDC) Monday said it has received the state government nod in investing in equity of the proposed alumina plant and aluminium smelter project in collaboration with Nalco.

"Gujarat government has given its consent to GMDC for investing in equity of the joint venture project proposed with Nalco. The land has still not been finalised for the project and search is on for an appropriate site," a top GMDC official told PTI.

"Once the land is finalised for the project, it shall be taken for approval of the state cabinet," he said.

National Aluminium Company Limited has qualified as the sole bidder for the over Rs 10,000 crore alumina and smelter plant project proposed in Kutch district and has deposited upfront fees of Rs 150 crore for the project.

The bids for the project were technically examined by the Nagpur-based Jawaharlal Nehru Aluminium Research Development and Design Centre, a GMDC official said.

The project is for one million tonne alumina and 0.5 million tonne aluminium smelter. GMDC will supply bauxite for the project from its group of mines in Kutch.

The estimated Rs 10,000-15,000 crore alumina and smelter project is expected to be set up in Gujarat on the lines of such units being installed by the UK-based Vedanta group in Odhisa, but with more sophisticated technology, the official said.

Gujarat government had signed an MoU with Aashapura Group in 2005 to set up the plant and smelter unit in Kutch but later the government did not extend the MoU, following which GMDC in 2010 invited EOIs for the project.

Aluminium smelting is the process of extracting aluminium from alumina.

GMDC posted a net profit of Rs 4,868.32 million for the year ended March 31, 2012 as compared to Rs 3,747.63 million, in the corresponding period last year. Its total income stood at Rs 17,040.788 million in the year ending March 31, 2012.