Upbeat Nalco plans to invest INR 30,000 crore for growth in next 5 years

Upbeat about a rise in aluminium consumption in India, Navaratna PSU Nalco is all set to invest INR 30,000 crore in various projects in the next five years.

“Nalco plans to invest to the tune of INR 30,000 crore in the next five years,” Nalco’s CMD Tapan Kumar Chand said in his Republic Day message, adding that a INR 6,000 crore refinery project in Damanjodi is on the anvil too.

“Sunny days are ahead for aluminium industries as consumption in the country is slowly picking up against the backdrop of an increase in GDP to 7.5 per cent this fiscal and availability of consumption potential of more than three multiples,” the CMD said.

Noting that the average consumption was 2.2 kg in India as against the global 8 kg per capita, Chand said growth in electrical and electronics sectors as well as construction, transport and automobiles are likely to spur more consumption. Voicing concern over the sluggish world aluminium market, he said global aluminium production has exceeded consumption by 2.6 per cent, leading to a surplus of roughly 1.4 million tonnes in 2015.

Slowdown in consumption in China has resulted in dumping, causing a steep fall in metal prices, the Nalco CMD said, adding at present aluminium prices are moving in a narrow band of around $1,500 per tonne, much below the cost of production of primary producers.