Nalco to invest on energy sector

Poised for a big leap in its diversification plan, aluminium giant NALCO is all set to invest around Rs 40,000 crore to make a foray into energy sector besides implementing a host of new projects and expansion works.

"The company has taken up several greenfield projects. As part of this drive, plans are afoot to set up a new smelter in Western Odisha with an investment of about Rs 16,000 crore," NALCO CMD B L Bagra said.

The project is now being pursued with the Odisha government by the Navaratna PSU, he said

Turning to the aluminium major's diversification plans, Bagra said in energy sector, the company has formed a Joint Venture with Nuclear Power Corporation of India Ltd (NPCIL) to set up nuclear power plants in India.

Both the partners have selected Kakrapar Units 3 and 4 of 700 MW each in Gujarat as their first JV project with an estimated project cost of Rs 11,500 crore, he said.

The construction work has already started and the project is scheduled to be commissioned by December, 2015.

Moreover, with a view to harness the unconventional energy source, NALCO is setting up a Rs 274 crore Wind Power Project in Andhra Pradesh with a capacity of 50.4 MW, which is in the final stage of commissioning. Plans are afoot for a second Wind Power Project of equal capacity, Bagra said.

This apart, a third plant has been planned in the company's own worked out mined area at Panchpatmali in Koraput district of Odisha. Also, a Solar Power Plant of 15 MW is on the cards.

NALCO has also shown keen interest in the proposed 4,000 MW Ultra Megal Power Plant (UMPP) in at Bedabahal in Sundargarh district of Odisha, Bagra said adding bidding for the project is likely later this year.

The company is in the process of forming a consortium of PSUs including BHEL, NMDC and Neyvelli Lignite Corporation in an effort to strengthen its bid.