Nalco puts all overseas projects on hold for expanding domestic capacity

According to Tapan Kumar Chand, Chairman of National Aluminium Company Ltd (Nalco), the company has put all overseas projects on hold, including one in Iran, as it aims to focus on increasing domestic capacity.

Tapan Kumar Chand told Reuters, “Iran’s proposal is attractive as long as gas prices are attractive, but not much of an indication in that area has come.”

NALCO, signed a MoU with Vice Chairman of Planning Board, Govt of Iran to explore the possibility of setting up an aluminium smelter in Iran in 2016.

Late last year, the Indian government asked the company to consider again its global expansion plans, mentioning the need to be self-sufficient in aluminium production. The company also had intended to establish smelter with capacity of 500,000-tonnes per annum and an associated power plant in the Middle East.

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Nalco’s refinery worth $849 million in Damanjodi, Odisha, is expected to be commissioned by 2021. The refinery will increase company’s alumina production by as much as 48 per cent to 3.1 million tonnes.

Chand said, “Nalco is now strengthening its alumina arm by putting up a 1-million-tonne refinery. We have got environment clearances and technology selection is over. The company has also formed a panel to explore the domestic sale of alumina.”