|A Nalco aluminium smelter unit|
ALUMINIUM giant NALCO is set to foray into nuclear energy sector, and for setting up nuclear power plants, the company has formed a joint venture (JV) with Nuclear Power Corporation of India (NPCIL). The two companies have selected...Kakrapar Units 3 and 4 of 700 MW each in Gujarat as their first JV project with a project cost of Rs 11,500 crore. This was stated by National Aluminium Company Limited (NALCO) CMD Ansuman Das after the company's annual general meeting held in Bhubaneswar last week. He added the construction work had already started and the project was scheduled to be commissioned by December, 2015. NALCO has 49% share of equity in the project and the JV was incorporated on March 12, 2013. The initial equity investment of 26% (Rs 894 crore) has already been approved by the Board and this is to be enhanced to 49% upon the approval of Government of India through Cabinet Committee on Security (CCS). Apart from nuclear energy, the PSU has made a foray into renewable energy too. With the establishment of 50.4 MW wind power plant at Gandikota in Andhra Pradesh at an investment of Rs 274 crore, the company's diversification plan is already taking shapes.
The second wind power plant of 47.6 MW is being set up in Rajasthan with an investment of Rs 283 crore. Another plant has been planned in NALCO's own area at Panchpatmali in Koraput (Odisha).
The Navratna company is planning to invest over Rs 33,000 crore in a host of sectors including energy to boost its productivity and profitability. "NALCO is embarking upon an ambitious growth plan involving a massive investment of more than Rs 33,000 crore in next three to four years for diversification," the CMD said. "NALCO has begun a new odyssey to conquer the challenges of present and threats of future with its new Corporate Plan ... this will give a significant boost to the company's productivity and profitability," he added. Referring to greenfield projects, the NALCO CMD said the company is planning to set up a Rs 5,500 crore alumina refinery in Gujarat with one million tonne per annum capacity. The preparation of detailed project report for this has started. Similarly, NALCO is also planning a Rs 16,450-crore smelter of 0.5 MTPA capacity and power plant of 1260 MW capacity in Odisha's Sundargarh for which approval of the high level clearance authority of the state government has been obtained, Das said.
Regarding NALCO's performance, the CMD said the company had posted a higher net sales turnover of Rs 6,809 crore in 2012-13 which was 4.75 percent over Rs 6,500 crore achieved in the previous fiscal. The rise in sales turnover was mostly attributed to higher production and sale of alumina. However, the net profit of the company was at Rs 593 crore during the year as compared to Rs 850 crore in previous fiscal, primarily due to high input costs, Das said.