India’s Nalco To Invest $1.23B On Capex

India’s state-run National Aluminum Company, or Nalco plans to invest INR50 billion ($1.23 billion) by the next financial year ending March 2009 to raise its production capacity by 30%-35%, a senior company
official said.

“We have planned a total investment of INR50 billion by March 2009 to raise the production capacity of our bauxite mine in Koraput, alumina refinery in Damanjodi and also the aluminum smelter in Angul,” B.L.

Bagra, Nalco’s chief financial officer told Dow Jones Newswires.

India’s financial year runs from April to March.

All the three Nalco units are located in the eastern Indian state of Orissa.

The company has decided to raise $250 million through an external commercial borrowing to partly fund its capital expenditure plans.

“The remaining will be raised through internal accruals,” Bagra said.

Nalco has invited expression of interest through competitive bidding from bankers to act as arrangers for the issue, he said.

“We hope to get good response from bankers,” Bagra said, adding that bidding will open May 30.

Nalco expects to raise its annual alumina refining capacity to 2.1 million tons by 2009, from an existing 1.57 million tons a year.

“The capacity of our aluminum smelting unit in Angul will also be increased to 460,000 tons by 2009, by adding new machines and equipment,” Bagra said.