Nalco plans Rs 14,000 cr project in Jharsuguda.

National Aluminium Company (Nalco) is exploring the possibility of setting up a greenfield aluminium smelter and a captive power plant near Jharsuguda at an investment of more than Rs 14,000 crore.The capacity of the proposed smelter will be 5 lakh tonnes per annum, while the captive power generation will be 1,250 MW.
The alumina required for the project is likely to be sourced from Nalco's existing refinery at Damanjodi. Engineers India limited (EIL), which has been appointed as Nalco's consultant, has found the project technically feasible.
Jharsuguda is chosen as the possible site for the plants as it is in the vicinity of the Ib valley coal reserves. While Nalco has the required technology, land acquisition is expected to be trouble-free as most part of the identified patch is Government land and barren.

Though Nalco has been refused a coal block for the project, the Coal Ministry has assured the company of a long-term coal linkage from the Mahanadi Coalfields Limited (MCL) mines.However, the availability of water poses a serious problem for successful completion of the project. Though the consultants, in their pre-feasibility report, have suggested that water can be sourced from the Ib river, it may not be an easy option, particularly in the light of the recent farmers' unrest in the area.
Meanwhile, the State-owned Industrial Promotion and Investment Corporation of Orissa (Ipicol) has forwarded the company's application for water from the Ib river to the Water Resources Department. Providing water to the proposed plant from the river will depend on the priority of the State Government, official sources said.
Besides, the company is weighing various options for setting up smelter plants in countries like South Africa and Iran depending on the availability of cheap power.
A high-level company delegation recently visited South Africa to explore the possibility of setting up a plant there, but nothing has yet been finalised. The company intends to set up a 5-lakh-tonne-per-annum smelter and 1,260-MW captive power plant in two phases in South Africa.

Nalco has also entered into a memorandum of understanding (MoU) with the Kerman Development Organisation for setting up a smelter and subsequently a gas-based power plant in Iran as a joint venture. The capacity of the smelter will be 3.1 lakh tonnes and it will come up in two phases.