Mumbai, February 27: Hindalco Industries, the Aditya Birla group's aluminium major, has selected the sites for the aluminium refinery, captive power plant and smelter which together will form the Rs 8,000 crore-plus integrated aluminium project in Orissa, christened Aditya Aluminium.The company, which over the last six months had shortlisted three possible areas for mining bauxite, has finally set its sight on the one at Kodingamali, in Koraput district. The mine will have an annual capacity of 3 million tonnes.
The aluminium refinery, where every 3 tonnes of bauxite will be converted into one tonne of alumina, will be set up at Kansariguda in Rayagada district. The one million tonne per annum refinery will also have a 50 mw cogeneration plant.
The 2,50,000 tonnes per annum aluminium smelter, where two tonnes of alumina will be required to make one tonne of aluminium, will come up at near Lapanga, in Sambalpur district of Orissa. The 650 mw captive power plant will be set up in an adjoiningcomplex.
The Aditya Birla group has decided to remain tightlipped on the project. A group spokesperson said: "We have finally zeroed in on the sites. But the final go-ahead for the project will be given only after the techno-economic feasibility report is tabled around May."
The techno-economic feasibility study, being prepared by international consultants and currently in its final stages, will look into the various technology options that can be implemented for the project. It will also explore the different financing options available for the mega-project.
The company has already signed a memorandum of understanding (MoU) with the government of Orissa for mining rights. Hindalco's application has also been forwarded by the state government to the centre. The draft mining plan has also been submitted with the Indian Bureau of Mines.
Senior company officials had earlier indicated that Hindalco was considering a possible debt-equity ratio 0.9:1 for the project. It is learnt that a huge equity issueof close to Rs 1,000 crore is also being explored by Hinda-lco.
Hindalco has already shortlisted three international majors, which includes the world's largest aluminium company Pechiney, for technology collaboration. The smelter, if and when the company gives the go-ahead, will be set up in two stages. In the first phase, the smelter will have a capacity of 100,000 tonne and is expected to come up by the end of-2001.
As the project, which will be a division of Hindalco and not a separate company, will have a surplus alumina capacity of 500,000 tonne, the company's board has also considered setting up of downstream facilities at a later stage.
Hindalco, with the commissioning of its eighth potline at its smelter in Renukoot, Orissa, recently has become the country's largest metal producer with a capacity of 2,42,000 tonnes. Renukoot now houses the largest integrated aluminium complex with a capacity of 450,000 tonnes, over 1,30,000 tonnes of semi-fabricated products and captive power generation capacityof 575 mw.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
