Nalco committed to setting up second smelter unit in Odisha

The State-run National Aluminium Company Limited on Saturday reaffirmed its commitment on setting up of the second smelter and power complex at Odisha’s Sundargarh at estimated cost of Rs. 22,000 crore.

“A smelter unit of 0.5 MTPA with a power plant of 1050 MW capacity at a cost of Rs.22,000 crore is being planned at Sundargarh district of Odisha. NALCO has already applied for single window clearance of above project,” said NALCO chairman and managing director T.K. Chand while addressing shareholders at the 34th annual general meeting here on Saturday.

NALCO has already been operating a smelter and a power plant at Angul. “Some preliminary clearances have been obtained and NALCO has applied for Single Window Clearance from Odisha government for Sundargarh smelter,” said Mr. Chand.

Similarly, the company has already started pre-project activities for setting up of fifth stream of 1 MTPA capacity in existing Alumina Refinery at Damanjodi at an estimated investment of Rs.5,540 crore.

“The project is envisaged with Medium Pressure Digestion Technology. While we have got the much-awaited and much-needed allocation of Utkal D and E coal blocks, we are looking forward for consent of the State government for allocation of Pottangi Mines in Koraput district so that alumina refinery project of Rs.5,500 crore can immediately start,” he said.

In his AGM address, Mr. Chand also reiterated that NALCO would explore possibilities of setting up smelter on foreign soil where cheap power will be made available to the company.

“Our action plan includes, increasing the volume of production, go for expansion and modernisation of our plants and diversification of products. Further, our target is to increase our networks in the domestic as well as in the international market. A flexible plan is envisaged, which takes into account the market uncertainties of future,” he said.

The 34th AGM of NALCO approved a total dividend payout of 35 per cent, which worked out to Rs.1.75 per share. “The total pay-out is Rs.451.02 crore for 2014-15. Since inception, NALCO has paid a total of Rs.5,356.76 crore as dividend, including Rs.4,598.99 crore as share of Union government,” the company said.

Outlining NALCO’s growth plans, Mr. Chand said, “at this stage, NALCO is targeting to be a global player in the mining, metal and energy sectors for which the company has plans to increase the existing metal production, alumina production and raise bauxites and coal.”