Posted inSectors

NALCO to infuse Rs 30,000 cr on expansion by FY28

It will contribute significantly to the alumina and aluminium sectors having a multiplier effect in the production and consumption

NALCO to infuse Rs 30,000 cr on expansion by FY28

The National Aluminium Company (NALCO) will invest around Rs 30,000 crore by FY28 on expansion and diversification plans.

Out of this proposed investment, the company will spend over Rs 7,000 crore on the 5th stream refinery, Pottangi bauxite mines, bauxite transportation system from south block &Utkal D & E coal mines.

The remaining amount of Rs 22,000 crore will be spent on the smelter and captive power plant (CPP) expansions, which also include expansion of the company’s smelter plant at Angul district in Odisha with the construction of 1,400 MW feeder CPP.

It will contribute significantly to the alumina and aluminium sectors having a multiplier effect in the production and consumption of this strategic metal and achieve Aatmanirbhar Bharat vision.

Moreover, given the requests made from the state government, the Central government will amend concerned rules so that the smooth production of minerals could be ensured and non-serious players barred from participating in mineral block auctions.

Specially to expedite iron ore production in the state, the Centre has approved the proposals to allot two iron ore mining blocks to the Odisha Mineral Corporation and one block to the Odisha Mineral Exploration Corporation on request of the state.

A memorandum of understanding (MoU) has also been signed between the Odisha Mineral Exploration Corporation (OMECL) and the Mineral Exploration Corporation (MECL) for exploration of mineral blocks of OMECL.

Moreover, to expedite the auction of mineral blocks in Odisha, relaxation in norms is also being considered.

As per laid down procedures made through this amendment, leases for 46 mineral blocks were getting expired in March 2020, a majority of them were situated in Odisha.

To keep the mineral productions uninterrupted, the Central government brought The Mineral Laws (Amendment) Ordinance 2020, in January 2020, that broadly mandated the state governments to take advance action for auction of mineral blocks so that the new leaseholder could be decided before the existing lease gets expired.

It was also mandated that approvals and clearances will automatically get transferred to the new owners of mineral blocks for two years from the date of grant of the new lease.

During this period, the new owners could apply and get fresh clearances. This helped the new owners to continue with hassle-free mining operations.

NALCO, in association with the state government, is also setting up an Aluminium Park in Angul, near its smelter plant to encourage the development of downstream and ancillary industries in the state. This will enhance employment in the area and give a boost to local entrepreneurship.