Nalco may have to fish out more for expansion

The National Aluminium Company Ltd (Nalco) will have to spend an additional Rs 700 crore due to the delay in getting the Centre's approval for its second phase of expansion. 
 
"The company had planned to spend Rs 3,623 crore in the second phase during the Tenth Plan, but due to a delay in the government's approval, it is projected to spend Rs 4,345 crore during the next plan," company sources said. 
 
On the other hand, the capital cost for various segments of integrated aluminium complex, including margin money, is likely to increase to Rs 5,048 crore from Rs 4,091.51 crore, assessed during July 2003. However, the company has estimated that this time there will be no time overrun. 
 
The state-owned company, in its scheme-wise and year-wise plan outlay, has projected a total capital expenditure of Rs 9,453.66 crore during the Eleventh Plan (2007-2012) for various projects. 
 
The mining operation at Utkal-E block, situated in the Chendipada block of Angul district in Orissa, will be executed by Nalco, the capital cost for the project is estimated at about Rs 307.66 crore. In the Eleventh Plan, it has projected to spend Rs 297.66 crore. During this period, nearly 3.32 million tonne per year coal will be produced. 
 
However, Qatar and Oman authorities have expressed their inability to proceed with the greenfield smelter project at Ras Laffan and Salalah, respectively. 
 
While, the capital investment for Fujairah project in the United Arab Emirates is estimated at Rs 4,000 crore in the next plan. The project is being discussed by the UAE authorities. The project cost is expected to spilled over to 12th five year plan. 
 
The capital cost for the Pottangi Mine in Orissa is estimated at Rs 400 crore, debottlenecking of alumina plant at Pechiney in Andhra Pradesh will cost Rs 400 crore during the 11th Plan. 
 
As many of the projects were commissioned nearly 20 years ago, the company will have to bear capital expenditure of Rs 705.02 crore for addition, modification and replacement in the aging plant, to maintain the capacity.