Nalco to set up Rs 10k-cr smelter plant in Indonesia

National Aluminium Company Ltd (Nalco) is planning to set up a Rs 10,000-crore smelter project at Indonesia. A consultant appointed to analyse the pros and cons of the project has given a green signal. Nalco will soon come out with a detailed project report (DPR), including financial structuring, equity partnership, business model, among others, said CR Pradhan, chairman and managing director, Nalco. Talking to FE on the sidelines of a three-day seminar on aluminium diecasting, organised by the Aluminium Association of India said, “We have received a favourable report from the consultant on this project and we will soon come out with a DPR in this regard. Based on this, we will move further.” “We will look for partners for this 5,00,000 tonne, 1,300 mw smelter project. It could either be a local partner someone from outside. Everything, including the exact project cost, financial tie-ups, JV partners etc, will be known only after our DPR is ready,” he added. The company plans to export raw material from India to smelt it in Indonesia and then bring back the aluminium for finished products. For this, we will have to approach the Indonesian government for various approvals. The company has similar plans for Iran as well, he added. According to Pradhan, the Rs 5,000-crore brownfield project at Orissa is nearing completion and the project will have additional capacities of bauxite, alumina, aluminium and power. The bauxite capacity will go up from 48 lakh tonne to 63 lakh tonne, alumina capacity will go up from 16.5 lakh tonne to 21 lakh tonne, aluminium capacity will go to 4.6 lakh tonne from 3.45 lakh tonne and the power capacity will be increased to 1,200 mw as against the present 960 mw, he said. Pradhan also pointed out that the per capita consumption level of aluminium in India was expected to grow sharply in the years to come due to its increased usage across various applications. Many reputed auto majors are already sourcing die casting components from India. With most of them already setting up shops in India and expanding their operations in a big way, there is an immense potential for a quantum leap for the aluminium die-casting industry, he added. The time is ripe to take stock of the present status of the industry and chart a roadmap for the future. In the days to come, considerable attention needs to be given on improving alloy design and processes,Pradhan concluded. ---by financial express