Balco plans to enhance capacity to 1 MTPA

The proposal for expansion was made in 2013 but was put on hold following global economic slowdown

Vedanta-controlled Bharat Aluminium Company Limited (Balco) would be expanding its production capacity to 1 million tonne per annum (MTPA).

The proposal for the expansion and modernisation of Balco facility located in Chhattisgarh’s Korba district was designed in 2013. It was however put on hold following global economic slowdown. Vedanta Chairman Anil Agarwal, who visited Balco early this week for the first time after taking over 51% stake in the company in 2001, asked the officials to revive the plan and expedite the expansion programme with immediate effect.

The Government of India holds remaining 49% stake in the company that was incorporated in the year 1965 as a Public Sector Undertaking (PSU).

“The company would be investing Rs 10,000 crore for the expansion plan,” Balco spokesperson told Business Standard. The old plant would be dismantled and a new one with modern technology would be set up that would facilitate to enhance the capacity to 1 MTPA, he added.

At present, Balco is equipped to produce 575,000 tonne per annum aluminium. Because of power constrains, the plant is unable to run to the full capacity. The 1200-Mw power plant had been commissioned while the company had bagged the Chotia coal mine in the auction to feed it. The power plant was a major milestone as it would help feeding the proposed plant under the expansion programme.

The company is also eying bauxite mines in Madhya Pradesh and Chhattisgarh as the deposits in Chhattisgarh’s Kawardha and Mainpath was depleting. The stock would feed the plants for another three years only.

After the capacity expansion in Balco, Chhattisgarh would emerge as the second largest aluminium producing state in the country. Earlier, the state was ranked third. The enhanced capacity would also help Chhattisgarh to produce 35% of the Country’s aluminium.