Companies

Odisha to offer 188 acres for Nalco’s ₹5,500-crore downstream project

Abhishek Law Shobha Roy Kolkata | Updated on January 24, 2019 Published on January 23, 2019

Nalco will have to purchase the land from the Odisha Industrial Development Corporation   -  Getty Images/iStockphoto

Billed as one of the largest investments in the metal space, the project is likely to generate 1,700 jobs

The Odisha government is on course to offering 188 acres of land to National Aluminium Company (Nalco), for its proposed ₹5,500-crore downstream complex at Kamkhyanagar in Dhenkanal district of the State.

Finalisation of land requirements and other details are expected by the end of February.

This is billed to be one of the largest investments in the metal downstream space in eastern region and in Odisha as well.

According to government sources, Nalco, in its proposal, has sought the land in Markata and BS Sasan areas of Kamkhyanagar. Based on the report, the Industrial Promotion and Investment Corporation of Odisha Ltd (IPICOL) has engaged Engineers India Ltd (a Navratna PSU providing engineering and related technical services) to do the land assessment and submit a report on the technical and other requirements.

The report is expected next month, post which IPICOL will make its recommendations.

Nalco will have to purchase the land from the Odisha Industrial Development Corporation, government sources said.

Clearances from different approval committees of the State have been received between September and November last year. According to Sanjeev Chopra, Principal Secretary, Industries Department, Government of Odisha, the State government is “actively promoting” investments in the downstream metal business across steel, stainless steel and aluminium sectors.

“The High Level Clearance Authority (headed by the Chief Minister, Naveen Patnaik) has already approved the (Nalco) project and land assessment is underway. This will be followed by land acquisition. Nalco’s proposed downstream unit is expected to generate over 1,700 jobs and also give a fillip to establishment of ancillary units around it,” Chopra told BusinessLine.

Downstream unit

For the planned downstream complex, Nalco expects to complete the project within 48 months of taking possession of land.

The complex will house facilities for aluminium foils, rolled products and extrusions, with a combined capacity of 170,000 tonnes per annum. Production of aluminium alloy wheels, used in automobile industry, will also happen here, as per Nalco’s plans.

The Navratna PSU’s enhanced focus on downstream applications comes at a time when its alumina arm is contributing handsomely to its gross turnover; and also Ebitda.

Previous proposals

According to Chopra, nine investment proposals worth ₹1,177 crore have already received the final nod post the biennial investors’ conclave, Make-in-Odisha event, held in October last year.

The single window for investor facilitation and tracking gave a go-ahead to Bharat Petroleum to invest ₹250 crore for setting up a biomass bio-refinery plant at Bargarh.

Besides this, the other big ticket clearance was granted to Hindustan Sanitaryware Industries Limited for a ₹350-crore container glass manufacturing facility at Cuttack.

Others include a ₹100-crore plant at Cuttack by Om Oil and Flour Mills Ltd, a similar investment by HIL Ltd to manufacture agro-chemicals at Chatrapur; and a ₹125-crore resort project by Mayfair Hotels and Resorts in Puri.

Omjay EV Ltd will invest ₹53 crore for an e-rickshaw and e-scooter manufacturing facility at Jajpur, while Hindalco will set up a coal gasification plant with an investment of ₹60 crore at Sambalpur.

In the electronics and IT sector, Jaipur’s Star GSM Upakaran Peripherals will invest ₹75 crore for a facility on the outskirts of Bhubaneswar; while Hyderabad-based C-TEL Infosystems will invest ₹65 crore to set up a research facility.

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Published on January 23, 2019
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