NEW DELHI, February 8: The National Aluminium Company Ltd (Nalco) is taking up an additional Rs 200 crore expansion to produce special aluminium for manufacturing cans."The expansion is being taken up to enter into value-added aluminium products market and looking at the growing demand for soft drinks in India," Nalco chairman and managing director SN Johri said.
He said this expansion of the public sector unit was in addition to other expansion plans already undertaken by it. Nalco has already undertaken a Rs 3,727-crore expansion plan in two phases, to be completed by 2001.
The special aluminium produced will be an import substitute and help in reducing the manufacturing cost of cans in the country, Johri said.
Nalco has already ventured into manufacturing of aluminium wheels for automobiles and the can project will be the second effort for the largest primary aluminium producer in the country to enter into the field of value-added products.
Johri said the project would be financed throughinternal resources and shortly cleared by Nalco's board of directors. After the board approval Nalco would approach the centre for final clearance.
Last month, the cabinet committee on economic affairs (CCEA) had approved phase-II expansion plan of Nalco's smelter capacity from 2.30 lakh tonnes per annum (tpa) to 3.45 tpa and captive power plant from 720 mega watt (mw) to 840 mw.
The total investment for the proposed expansion is Rs 2,062, while the phase-I will cost Rs 1,665 crore.
Under phase-I, nalco will double bauxite mines capacity to 4.8 million tonnes per annum (mtpa) and alumina refinery from 0.8 mtpa to 1.575 mtpa. The phase-I expansion is expected to be completed by 2001 and the second phase in 51 months from the date of construction.
Johri said the entire expansion would be primarily financed through internal resources and international debt if required, but there would not be any equity offering.
He said after repaying a 20-billion-yen loan in September, Nalco will have zero debt, whichwill help it in better leveraging.
The mega-expansion plans are expected to yield benefits from the year 2000, Johri said. Apart from these plans, the corporation is also undertaking de-bottlenecking of its smelter which will increase the capacity from 2.18 tpa to 2.30 tpa.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
