BHUBANESWAR: The State Government has reiterated its commitment to develop an aluminium park near Angul.
The Angul Aluminium Park has received in principle approval under modified industrial infrastructure up-gradation scheme (MIIUS) of the Department of Industrial Policy and Promotion (DIPP) in the Ministry of Commerce and Industry.
The Centre has sanctioned a grant of `43 crore for the project which is estimated to cost `125 crore.
"Odisha Industrial Infrastructure Development Corporation (IDCO) is the nodal agency for development of aluminium park at Angul and we are committed to develop industrial infrastructure along with external linkages such as road, water and power supply for the industrial park," IDCO CMD Vishal Dev wrote to the Ministry of Commerce on Monday.
As per the requirement of MIIUS, a special purpose vehicle (SPV) in the name of Angul Aluminium Park Pvt Ltd (AAPPL) has been formed. IDCO has an equity of 50.5 per cent in the SPV while the remaining 49.5 per cent share is with the National Aluminium Company Limited (Nalco).
As per the detailed project report, the total equity is about 71.47 per cent which works out to `167.69 crore. IDCO will initially subscribe to 57.32 per cent of the total equity in the SPV.
"The high initial contribution is on account of IDCO making investments in land procurement. This equity will get diluted over time with plot owners getting allotment of land," Dev said.
The park will be developed on 454 acres of land. The phase-I of the project will cover 224 acres while phase-II will be developed on 230 acres. The park will be first of its kind in the country where units will have access to hot aluminium metal.
Nalco has agreed to provide molten aluminium as well as aluminium in conventional solid form from its smelter plant to be used by the downstream units.
Claiming that a number of aluminium downstream industries has evinced interest in the project, an IDCO official said Midal Cables Ltd and Metal Powder Company Ltd have proposed to set up their units in the park.
Bahrain-based Midal Cables Ltd proposed to set up an aluminium conductor and rod manufacturing unit at an investment of ` 250-300 crore on 30-40 acres of land. The company intends to sell its products in domestic as well as international market.
