Bhubaneswar: Aluminium giant Nalco will invest over Rs25,000 crore to launch new projects and undertake major expansion despite decline in profit due to the global recession.
“Though disinvestment has to be a government decision as it is the owner, Nalco does not figure in the list of public sector companies likely to be disinvested now,” Nalco CMD C.R. Pradhan told reporters.
The government has not sought any comment from the Navaratna company in this connection, Pradhan said.
Growth plan: Nalco CMD C.R. Pradhan.
Despite adverse market conditions due to the global meltdown that led to fall in its net profit to Rs1,272 crore during 2008-09 against Rs1,632 crore in the previous year, Nalco achieved a record turnover of Rs5,631 crore last fiscal compared to Rs5,576 crore during previous year, he said.
Posting a 100% capacity utilisation in Alumina Refinery and Smelter, Nalco achieved highest ever cast metal production of 361,262 tonnes in 2008-09 against 360,457 tonnes in 2007-08, the company CMD said.
On new domestic projects, he said besides a Rs6,000 crore alumina refinery in Andhra Pradesh, the company plans to set up a five lakh tonne smelter plant and 1250 MW power unit in Orissa’s Jharsuguda district at an investment of more than Rs16,000 crore.
The proposal for smelter and power plant at Brajarajnagar in Jharsuguda district has been conditionally approved by the Orissa government, he said adding the project is proposed without any coal, mineral and water linkages.
About the Navaratna company’s move to foray into nuclear energy sector, he said an MoU is likely to be concluded with the nuclear power corporation by the end of this month or early next month for setting up a nuclear power plant in the country.
While, the nuclear power corporation’s board has approved the proposed joint venture with Nalco, the location and size of the plant is yet to be decided, he said.
On projects abroad, Pradhan said an aluminium smelter is in pipeline in Indonesia for which the government of that country has approved the foreign investment proposal.