Nalco forming consortium to win Sundargarh UMPP bid

Published: 15th August 2012 11:39 AM  |   Last Updated: 15th August 2012 11:39 AM   |  A+A-

The Nalco is keen to land the  4,000-MW ultra mega power project (UMPP) in Sundargarh with the final round of bidding for the project getting underway later this year.

It is in the process of forming a consortium  of PSUs, including Neyvelli Lignite Corporation, NMDC, Sutlej Jal Vidyut Board and BHEL, to strengthen its bid. As many as 20 players are in the fray for the UMPP proposed to be established at Bedabahal in Sundargarh district.

Carrying forward its diversification from its core sector to energy and steel-making, the aluminium major has also expressed its interest in takeover of Kalinga Iron Works Ltd (KIWL) of Idcol at Barbil. It has submitted the proposal for takeover and establishment of one million tonne steel plant to the Government following a viability study by Mecon India Limited, Nalco Chairman BL Bagra told mediapersons here on Tuesday.  The company has, however, spelt out several conditions that include no transfer of liabilities of KIWL onto it, allotment of encroachment-free land and freedom on employment issues along with assured iron ore and raw material linkage. The proposed project requires about 500 acre.

Bagra also announced initiation of third-phase brownfield expansion of its alumina and aluminium facilities in the State at an investment of Rs 7,500 crore. The expansion plans include addition of a fifth stream at its alumina refinery and a 500-MW power plant along with amperage increase at its smelter, Bagra said following the 31st AGM held here on Tuesday. The third phase follows completion of the second-phase expansion which has increased the annual capacity of bauxite mines to 63 lakh tonne per annum and alumina refinery to 21 lakh tonne a year. The upgradation of the fourth stream alumina refinery is complete and would be commissioned this year.

The company has planned to add the fifth stream with one mtpa capacity in the existing alumina refinery at an investment of Rs  4,000 crore. The preparation of the detailed project report (DPR) is underway. The 500-MW unit at its captive power plant will come up at a cost of Rs 2,522 crore and meet the requirement for technology upgradation of smelter potlines.


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