India’s state-owned aluminium producer National Aluminium Company (Nalco) announced on Monday that it had secured Rs.20,550 crore (US$2,999,344,425.00) for expansion of its aluminium refinery at Damanjodi and construction of a new aluminium park in Angul, both in Nalco’s home state of Odisha on India’s east coast.
While addressing investors and government personnel at an investors meeting on Sunday, Shri Tapan Kumar Chand, Nalco’s CMD remarked, “Since the entire value chain of Navratna Nalco, starting from bauxite mining to aluminium making is based in Odisha, our major focus is to strengthen the investment climate of the State, thereby boosting Odisha’s industrial upsurge.”
“Besides rich in mineral and water resources, Odisha has good road, rail and port connectivity. On the ease-of-doing-business index, the State is bracketed with the best,” Shri Chand remarked. “Moreover, the entire state is dotted with engineering and management colleges, Diploma & ITI institutes, to source skilled manpower. At the same time, the recent ‘smartest city’ tag pinned on State Capital Bhubaneswar by the Centre is an added advantage,” Shri Chand observed.
Shri Chand went on to say that structural factors in the world’s aluminium market may continue to present challenges to aluminium companies for the foreseeable future. As a result, Indian companies should adjust their cost structures in order to remain competitive in the industry.
“Given the tough going in the market, Nalco has developed a new Corporate Plan with a new business model that will withstand market onslaughts and keep the company afloat with profitability even in the slump cycle,” Shri Chand said.
The aluminium park is anticipated to employ up to 17,000 people and be constructed next to Vedanta’s 1.6 million metric ton per annum smelter. The existing smelter has facilities capable of generating up to 3600 MW of power. The state government will front the costs of infrastructure, which it plans to recoup from investors.