You are here: Home » Companies » News
Business Standard

NALCO lines up 3 projects, invests Rs 250 bn

The aluminium major will dedicate three major projects readied at a total cost of about Rs 6.6 bn, to the nation, during its upcoming foundation day

Press Trust of India  |  Bhubaneswar 

Aluminium

Upbeat over a 94 per cent jump in net profit, National Aluminium Company Limited (NALCO), has lined up projects with an investment of about Rs 250 billion, three of which will be inaugurated on Friday.

The aluminium major will dedicate three major projects readied at a total cost of about Rs 6.6 billion, to the nation, during its upcoming foundation day celebrations, CMD of the Navaratna company, told reporters here today.

Union Minister for Mines and Union Petroleum Minister Dharmendra Pradhan would inaugurate the South Block Bauxite mines, Panchpatmalli, 18.5 MW power unit at alumina refinery, Damanjodi and "first of its kind" Nanotechnology-based defluoridation plant at Angul on January 5, he said.

While Panchpatmalli south block bauxite mines with a project cost of Rs 600 crore has a capacity of 3.15 million tonnes per year, the power unit readied at a cost of Rs 430 million would reduce dependence on grid besides augmenting generation capacity, the CMD said.

Describing the nanotechnology-based defluoridation plant built at a cost of Rs 160 million as unique, he said it makes the first company to adopt and commercialise the Emrion technology, globally and plans to extend use of the technology in various drinking water projects in fluoride endemic areas.

Stating that was working on a new business model to expand its aluminium, alumina and power capacities, Chand said the alumina refinery at Damanjodi is all set to go for an expansion with an investment of over Rs 55.4 billion.

The project, aimed at increasing the capacity of the alumina refinery by one million tonne, is likely to be commissioned by 2020, he said.

Setting a target to join the club of million tonne producers of aluminium by 2020, is gearing up to undertake brownfield expansion of its smelter at Angul with an investment of around Rs 120 billion, the CMD said, adding, the expansion would raise production capacity of the smelter by 6 lakh tonne per annum.

Efforts are also being made for early commissioning of Utkal D & E coal blocks involving a project cost of Rs 5.34 billion, the CMD said.

With an emphasis on value addition, NALCO is setting up an alloy wire rod plant with an investment of around Rs 131 crore, he said, adding, that an aluminium park is being set up at Angul at an investment of Rs 1 billion to promote ancillary industries.

Similarly, a 2.7 lakh tonne per annum capacity caustic soda plant is being set up in Gujarat involving a project cost of Rs 20 b billion, while the required steps have been initiated for setting up 2 X 660 MW power plants in Odisha, he said.

Chand said that NALCO has achieved 100 per cent capacity utilisation of bauxite mines as also 100 per cent normative capacity of alumina refinery while speaking about the performance of the company in 2017.

The company reported a 94 per cent growth in net profits in the second quarter of 2017-18 at Rs 2.35 billion, as against Rs 1.21 billion in the corresponding quarter of the previous fiscal, the NALCO CMD said.

Similarly, revenues jumped to Rs 41.79 billion in first half 2017-18 from Rs 32.24 billion in the previous year, he said.

Post implementation of GST, NALCO's net gain was around Rs 1 billion due to rationalisation of taxes, which the company has passed on to customers in terms of Rs 3,000 discount per ton of aluminium, he said.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, January 03 2018. 21:30 IST
RECOMMENDED FOR YOU