National Aluminium is planning to set up new power plant Rs 14k-cr unit in Orissa

National Aluminium Company (Nalco) is exploring the possibility of setting up a greenfield aluminium smelter and captive power plant near Jharsuguda, western Orissa at an investment of more than Rs 14,000 crore. The capacity of the proposed smelter is pegged at 5 lakh tonnes per annum with a captive generation facility of 1,250 MW. The alumina required for the project is likely to be sourced from Nalco's existing refinery at Damanjodi.

Engineer's India (EIL), which has been appointed the consultant, has found the project technically feasible. Jharsuguda is being chosen as the possible site for the plant as it is in the vicinity of the IB valley coal reserves. While the company has the required technology, land acquisition is expected to be trouble-free as most part of the identified patch is government land and barren. The state-owned Industrial Promotion and Investment Corporation of Orissa (Ipicol) has forwarded the company's application for water from IB River to the water resources department.

Besides, the company is weighing various options for setting up smelter plants in countries like South Africa and Iran depending upon the availability of cheap power. It has recently entered into a MoU with the Kerman Development Organisation for setting up a smelter and subsequently a gas-based power plant in Iran in a joint venture. The capacity of the proposed smelter will be 3.1 lakh tonnes which will come up in two phases.