Financial Daily from THE HINDU group of publications
Thursday, Nov 06, 2003
Financial Daily from THE HINDU group of publications Thursday, Nov 06, 2003 |
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Corporate
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New Projects Utkal Alumina confident of kicking off Rs 4,500-cr project soon Our Bureau
Kolkata , Nov. 5 UTKAL Alumina International Ltd (UAIL), a the 100 per cent export-oriented joint venture between Indal and the Montreal-based Alcan Company Ltd, is hopeful that its ongoing Rs 4,500-crore alumina project in Orissa will be completed without further delay. Dr S.K. Tamotia, CEO & President of Indal and President of UAIL, told newspersons that the alumina refining capacity of the project would be substantially increased to minimise the per unit cost, while alumina would be sold without any quota reservation of the promoters of the company. The State Cabinet has approved the Mishra Committee's recommendation for allocation of Government and private land to the project. The implementation of the project - to produce one million tonnes of alumina - has already been delayed due to resistance by local tribals towards land acquisition. The project was initially estimated to cost about Rs 4,000 crore. The State Government has agreed to assist the company in getting physical possession of the required land. Dr Tamotia indicated that the project cost might go up to the level of about Rs 4,500 crore. The original promoters of UAIL, which included Indal, Alcan and Hydro Aluminium of Norway and the Tatas, had evolved a formula under which each promoter, in proportion to equity holding, would lift the percentage of the total production and sell independently. Dr Tamotia said that the original market policy would be reviewed. It was indicated that no such preference would be given to the promoters. UAIL has two principal promoters as Hydro and the Tatas have divested their equity stake in favour of other promoters. Under the restructured equity base, Indal and Alcan control 55 per cent and 45 per cent of the total equity respectively. Dr Tamotia also said that Aditya Aluminium Company - which is also based in Orissa and is part of the Aditya Birla group like Indal - has firmed an investment plan to set up an aluminium smelter in Orissa at an annual production capacity of about 4,00,000 tonnes. The required alumina for the smelter would be sourced from UAIL; a substantial portion of the production would be exported. Earlier, speaking at a seminar on `The role of the metal industry in the emergence of the east', organised by the Bengal Chamber of Commerce & Industry, Dr Tamotia said that India had potential to develop aluminium industry because of its bauxite reserves. The country globally ranks fifth with the proven bauxite reserve of about 2.6 billion tonnes (bt) as against Guinea's 9.1 bt, Australia's 8.1 bt and Vietnam's three bt.
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