Aluminium park creates demand matching Nalco's rated capacity

The aluminium downstream park at Angul co-developed by National Aluminium Company (Nalco) along with state-owned Odisha Industrial Infrastructure Development Corporation Ltd (Idco) has generated demand for 0.41 million tonnes of the metal. This demand, fuelled by a rush of proposals from the downstream industries almost matches Nalco's aluminium smelter capacity of 0.46 million tonnes in the park's vicinity.

The Odisha government has approved multiple projects with investments valued at about Rs nine billion for the aluminium park. At a recent meeting of the State Level Single Window Clearance Authority, two proposals were cleared. The first proposal came from a Mumbai-based manufacturer of aluminium rods to set up a unit at the Angul aluminium park with an envisaged capacity of 40,000 tonnes per annum. With an investment of Rs 563 million, the unit has a potential to generate employment for 200 persons. The second proposal is by Rajasthan-based cables company to produce aluminium conductors at a cost of Rs 503 million.

To meet the surge in aluminium demand, Nalco is opting for brownfield expansion at its Angul facility. “After expansion, our capacity will be scaled up to 1.2 million tonnes per annum. Nalco has assured raw material supply to the downstream units at the Angul park for 25 years. We are also providing a discount of Rs 5000 per tonne on aluminium ingots and Rs 4000 a tonne on molten metal supplied to the downstream industries”, said T K Chand, chairman & managing director, Nalco.

The park is modelled on Sohar Aluminium’s cluster in Oman where molten aluminium is supplied to the downstream units. This saves on logistics costs and also ensures continuous raw material supplies.

In India, this is the first of its kind project in the country where molten aluminium would be sourced directly to feed the downstream units at the park. 

The park is modelled on Sohar Aluminium’s cluster in Oman where molten aluminium is supplied to the downstream units. This saves on logistics costs and also ensures continuous raw material supplies.

In India, this is the first of its kind project in the country where molten aluminium would be sourced directly to feed the downstream units at the park. But, both Nalco and Idco- the equity holders in the aluminium park have gone beyond the commitment of raw material supply.

The park has bagged one overseas investment from Bahrain-based Midal Cables. The company has proposed a rod and wire conductor unit at the park at an investment of Rs 358.90 crore with an annual capacity of 60,000 tonnes per annum. Grid Conductors Ltd, a subsidiary of Power Grid Corporation of India Ltd (PGCIL), has proposed to establish an aluminium and aluminium alloy conductor unit in Odisha, committing an investment of Rs 1.27 billion.

Nalco is also teaming up based Almex for production of automotive grade aluiminium. The project to cost Rs 25 billion will come up at the downstream aluminium park at Angul (Odisha) in the vicinity of Nalco’s aluminium smelting unit.

The Nalco-Almex JV unit would be spread across 50 acres at the park. The entire aluminium park where Nalco and state government owned Odisha Industrial Infrastructure Development Corporation (Idco) are joint equity partners, is developed on 240 acres of land. The project between Nalco and Almex is envisaged to have an annual production capacity of 60,000 tonnes.  

With an investment of Rs 1.8 billion on infrastructure of the project, the aluminium park would reflect a complete industrial state-of-the-art entity, fully equipped with logistics infrastructure facility, an exclusive training centre, a park administration and a display & trade services facility. The park would also contain an Aluminium Product Evaluation Centre (APEC) furnished with a full-fledged tool room, testing, simulation and evaluation facilities, processing hall and prototype development facility to foster innovation and deliver excellence in terms of quality.