Odisha aims to be hub for aluminium downstream, ancillary units

Investments in aluminium downstream space gaining momentum, state attracted investments worth Rs 893 cr in past 5 years

Odisha, which is home to operational units of top three aluminium producers — Vedanta, Hindalco Industries and National Aluminium Company (Nalco) — is intensifying efforts to build an ecosystem for ancillary and downstream units. 

The initiative is in tune with the state government's efforts to attract investments in ancillary and downstream industries, one of the six focus sectors listed in its latest industrial policy statement of 2015.

Last month, the state government, in collaboration with Tata Steel and Jindal Stainless (JSL), hosted a meet for the aforementioned industries at Kalinganagar, which is the steel hub in Jajpur district. The event was attended by over 70 companies, including vendors of the two steel companies.

Following the success at this meet, the state government has decided to organise a workshop on similar lines for the aluminium industry. The event, expected to have a turnout of about 100 ancillary and downstream companies in aluminium, would be held here on October 16. For this event, the state government is partnering the Confederation of Indian Industry (CII).

"The chief executive officers of Vedanta, Hindalco and Nalco are going to attend the event. We have invited downstream and ancillary companies who will take up on-site visit of the aluminium park being developed at Angul", said an Odisha government official.

Investments in aluminium downstream space are gaining momentum in Odisha. Over the past five years, the state has attracted investments worth Rs 893 crore, including proposals by Bahrain-based Midal Cables and Power Grid Corporation of India (PGCIL) subsidiary Grid Conductors. Four out of the five proposals drawn is for the aluminium park developed jointly by Nalco and state government-owned Idco at Angul.

Midal Cables 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, on the other hand, has proposed to establish an aluminium and aluminium alloy conductor unit in Odisha at Rs 127.35 crore.

There is a proposal by Gupta Power Infrastructure to set up a facility for high-tension cables within the aluminium park at a cost of Rs 192.07 crore. Beyond the aluminium park, Deepak Cables (India) has sought to put up an integrated aluminium downstream project at Dulampur in Bargarh district for Rs 155 crore.

With an investment of Rs 180 crore on the 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 and 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.

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 state has already received investment proposals in downstream industries of conductors, extrusions, castings, and foils to name a few. The extent of these investments diversifies to other value-added products catering to white goods, auto components, construction and other allied industries. Ancillary businesses are also expected to benefit from this project and their investors include providers of the raw material of calcined petroleum, special refractory bricks, cryolite, caustic soda and aluminium fluoride.

The aluminium park is located strategically in the vicinity of Nalco's smelting facility at Angul and also in close proximity to the ports and markets.