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| Carborundum Universal to set up alumina project |
| Kalpesh Damor / Mumbai/ Ahmedabad May 24, 2010, 00:38 IST |
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Carborundum Universal Limited (CUMI), a Murugappa Group company based in Chennai, is all set to pump in Rs 50-75 crore for setting up a brown fused alumina (BFA) plant in Kutch district of Gujarat. The project is likely to be developed in joint venture with state-owned mining major-Gujarat Mineral Development Corporation (GMDC).
The company has identified Nakhatrana area of mineral rich Kutch region for the brown fused alumina project. "Around Rs 50-75 crore will be infused for the plant and we intend to start implementation of the project this year," said K Srinivasan, managing director, Carborundum Universal Ltd.
The proposed plant will have a capacity of 35,000 tonnes and it will be operational after 18 months from the date the company starts construction of the plant. The company also has plans to set up a power plant along with the project. "It will be a coal-based power project with a capacity of 20 Mw," he said.
CUMI has already entered into a memorandum of understanding with GMDC. "We have not yet formed a joint venture but it is under process," Srinivasan added. When asked about the equity to be shared by both the partners in the project, he refused to divulge the details saying that the details have not been worked out yet.
However, sources privy to the development informed that the public sector mining company, which has bauxite mines in Kutch, may get 26 per cent stake in the project.
Alumina is produced from bauxite and Kutch has large reserves of bauxite. In fact, Gujarat's total bauxite reserves are estimated at around 170 million tonnes and the state has potential to generate 1 million tones of alumina.
Apart from brown fused alumina, Carborundum Universal also makes semi-friable alumina, white fused alumina and ceramic alumina and caters to various markets such as refractory, bonded abrasives, coated abrasives etc.
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