Financial Daily from THE HINDU group of publications
Friday, Jan 30, 2004
Financial Daily from THE HINDU group of publications Friday, Jan 30, 2004 |
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Corporate
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New Projects Indal to invest Rs 700 cr in Hirakud, Kerala smelters Our Bureau
Kolkata , Jan. 29 INDAL Ltd has lined up investments worth Rs 600-700 crore for the next two years for its smelters at Hirakud and Kerala, according to Mr S.K. Tamotia, President and CEO. He was talking to newspersons at the sidelines of the 34th National Convention of Indian Society of Training and Development. The Kerala smelter of the Indal is lying closed since August 2003 as the State Government raised the price of the power to Rs 3.35 per unit. Indal has already submitted three options to the Kerala Government. First, is setting up its own thermal power generation unit of 40 MW, which will cost around Rs 100 crore. The second option is wheeling of power with Power Trading Corporation. Indal is currently increasing its power capacity at the Hirakud plant from 67.5 MW to 167.5 MW. The excess power from this unit will be wheeled to the Kerala unit. The third option is total closure of the unit. "At present, we are regularly paying our 400 employees. This cannot go on forever. We have these three options and for either of it, we need a permission from the State Government", Mr Tamotia said. According to him, a power price of Rs 2.50 per unit will make the unit viable but Indal is looking at ways for buying power at lesser rates. That will make the Kerala unit profitable. The capacity of the Kerala unit is 14,000 tonnes per annum. Meanwhile, the company has sought clearance from the State Government to increase the capacity of its Hirakud smelter from the existing level of 65,000 tonnes per annum to one lakh tonnes per annum. The company is contemplating setting up another 100 MW power plant along with the added smelter capacity. This power plant will come over and above the new capacity of 100 MW, which is being currently installed. According to Mr Tamotia, the total cost of the project (expansion of smelter capacity and a fresh 100 MW of thermal power generation unit) will cost the company about Rs 600 crore.
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