Nalco Saves Rs 300 Cr On Expansion

In an era when most of the projects in the country are saddled with the problem of cost overruns, the public sector National Aluminium Company (Nalco) has saved Rs 300 crore on the projected expenditure for its mines and refinery expansion programme.

The expansion project started three years back was originally estimated to cost Rs 1,665 crore. However, through careful selection of technologies, optimum use of available infrastructure, reengineering and competitive bidding, the company has been able to make a saving of Rs 304 crore on the projected cost, according to Nalco chairman-cum-managing director P Parvathisen.

The overall recession in the industrial scene also helped the company to bargain hard with its contractors and suppliers and keep the cost to the minimum. The lowered cost of expansion and substantial internal funding of capital will result in lower production cost of alumina and higher and faster pay-back on investment, Parvathisen said

 

Meanwhile, the first phase of expansion of alumina refinery located at Damanjodi in Koraput district is all set to go on stream later this month.

This will take the alumina output capacity of the company from the present 8 lakh tonne to 10.5 lakh tonne. The final phase of expansion which will further increase the capacity to the targeted 15.75 lakh tonne is expected to be completed by April 2001.

This will not only make the company the largest producer of alumina in Asia but also create an exportable surplus of about one million tonne of alumina per annum after meeting the internal demands of the smelter plant at Angul.

The bauxite production capacity of the company has already been doubled to 48,00,000 tonne.

On the metal segment, the company's project for enhancing the smelting capacity from 2.30 lakh to 3.45 lakh tonne is also on a fast track, he added.

Besides, work is on to increase the captive power generation capacity from 720 mw to 840 mw. Both the projects being implemented at a cost of Rs 2,062 crore are expected to be completed by May 2002.