Av Birla Group Seeks Govt Help To Set Up Orissa Projects

The Aditya Birla group is keen to push ahead with its two proposed alumina/aluminium projects in Orissa envisaging a total investment of Rs 15,500 crore provided the state government extended the required cooperation to set them up.

This was stated by Kumar Mangalam Birla, chairman of the group, here today. Birla, who is on a visit to the state, is scheduled to meet the chief minister Naveen Patnaik, tomorrow. The issue of establishment of both the projects is expected to feature in the discussion with Patnaik.

The first project, Utkal Alumina International Ltd (UAIL), promoted by Indal in collaboration with Alcan of Canada in Kashipur block of Rayagada district, is in limbo for a long time because of local resistance.

 

The project, a 100 per cent export oriented one, envisages to produce 1.5 million tones of alumina per annum and is estimated to cost Rs 4,500 crore. The equity distribution between Indal and Alcan for the venture is in the ratio of 55:45.

Though land for the project had been acquired few years back, the company is unable to start work on it due to access problem following prolonged resistance by the locals, Birla said.

Birla said, though the second project, to be set up under the banner of Aditya Aluminium, had been put in the backburner about four years back, it could be revived if the conditions were found to be favourable. This envisaged to be an integrated aluminium manufacturing facility with an installed capacity of 2.4 lakh tonnes of metal, 1.5 million tonnes of alumina and 630 MW of power plant.

While the alumina refinery will come up at Laxmipur in Rayagada district, the aluminium smelter and captive power plant will be set up near Sambalpur. Efforts to acquire land for the project is on, but payments have been held back pending transfer of mining lease for the project.

"It is the look out of the administration to ensure access to the project site at Kshipur for start of work on the UAIL venture", he said, adding, "We need favourable condition on the ground and are looking for the feel good factor to go ahead with the projects". He said the group has already spent Rs 110 crore towards land acquisition and other costs for both the projects.

On the group's interest in disinvestment of public sector aluminium major Nalco, Birla said, the disinvestment process has been in a limbo though the Birlas-owned Hindalco, bidding for the PSU has kept its options open.

The disinvestment of Nalco had been kept in abeyance by the Union government after a group of Hindalco officials visiting Nalco's manufacturing facilities at Angul and Damanjodi for due diligence was attacked by protesting workers.