Odisha draws Rs 893 crore investments in downstream aluminium sector
Sat, 09th Sep 2017 (Source:Business Standard)
Investments in aluminium downstream space are gaining momentum in Odisha. Over the past five years, the state, home to facilities of Vedanta, Hindalco and National Aluminium Company (Nalco), has garnered Rs 893.24 crore investments.
Ancillary and downstream industries have been identified as one of the priority sectors in Odisha’s Industrial Policy Resolution (IPR), 2015. The latest industrial policy statement offers a string of tax sops and incentives to the identified thrust sectors such as interest subsidy, stamp duty exemption, the exemption in contract demand and reimbursement of employment cost subsidy.
Odisha has so far received five investment proposals in aluminium downstream domain — four of them have been for the aluminium park at Angul developed jointly by Nalco with the state owned Odisha Industrial Infrastructure Development Corporation (Idco). This is the first of its kind project in the country where molten aluminium would be sourced directly to feed the downstream units at the park.
With an investment of Rs 180 crore on the infrastructure of the project, the aluminium park would reflect a complete industrial state-of-the-art entity, fully equipped with logistics infrastructure facility, an exclusive training centre, a park administration and a display & trade services facility.
The aluminium park is located strategically in the vicinity of Nalco's smelting facility at Angul and also in close proximity to the ports and markets. Nalco has committed to supply molten aluminium of up to 100,000 tonnes per annum to the downstream units at the park.
The park has bagged one overseas investment from Bahrain-based Midal Cables. The company has proposed a rod and wire conductor unit at the park at an investment of Rs 358.90 crore with an annual capacity of 60,000 tonnes per annum. Grid Conductors Ltd, a subsidiary of Power Grid Corporation of India Ltd (PGCIL), has proposed to establish an aluminium and aluminium alloy conductor unit in Odisha, committing an investment of Rs 127.35 crore.
There is a proposal by Gupta Power Infrastructure Ltd to set up a facility for HT (high tension) cables within the aluminium park at a cost of Rs 192.07 crore.
Beyond the aluminium park, Deepak Cables (India) Ltd has sought to put up an integrated aluminium downstream project at Dulampur in Bargarh district, investing Rs 155 crore.
The extent of these investments diversifies to other value added products catering to white goods, auto components, construction and other allied industries. Ancillary businesses are also expected to benefit from this project and their investors include providers of the raw material of calcined petroleum, special refractory bricks, cryolite, caustic soda and aluminium fluoride