Expansion projects of aluminium major Hindalco Industries are on track and production is expected to start by FY 11, a top company official said.
“Production of alumina from Utkal Alumina refinery is expected to start around July 2011. The construction of 1.5 million TPA greenfield project, Utkal Alumina refinery at Rayagada, Orissa is in full swing,” Hindalco’s Managing Director, Debu Bhattacharya said here.
The first metal from the smelter of Mahan Aluminium project in Madhya Pradesh would also roll out by July 2011. It has a capacity of 3,59,000 TPA and a captive 900 MW power plant is also coming up at Bargwan, Bhattacharya said.
The company has already acquired major chunk of land and has placed orders for both the smelter and the power plant.
“Our Aditya Aluminium Project’s first metal from the smelter (in Orissa) is slated for October 2011. The refinery would be mechanically completed by June 2013.
The first metal from the smelter of Jharkhand Aluminium Project is also expected by June 2013,” Bhattacharya said.
Hindalco’s integrated aluminium project, Aditya Aluminium is coming up in Orissa, with a 1.5 million TPA alumina refinery, 3,59,000 TPA aluminium smelter, and 900 MW captive power plant. Major orders have been placed for both the smelter and the power plant, Bhattacharya said.
The Jharkhand Aluminium Project is an aluminium smelter coming up in Sonahatu, Jharkhand, with a capacity of 3,59,000 TPA and 900 MW captive power plant. The land acquisition process has commenced and the company is trying to get the environmental clearance. The company has obtained water allocation for 55 mcm of water from the Subarnarekha basin. The first metal from the smelter is expected by June 2013, he said.
Among its brownfield expansion projects, the smelter expansion of Hirakud unit from 143 ktpa to 155 ktpa was completed on time. Work on the smelter expansion from 155 ktpa to 213 ktpa is now underway, part of this will be completed by July 2010 and the rest will be commissioned in FY 12.
“Project is underway for transfer of all key equipments for flat rolled products, from Novelis Plant at Rogerstone, UK to Hirakud. This will enable us to produce can body stock for local and export market. The project is slated for completion in Q2 FY 12,” Bhattacharya said.
The special alumina production from Belgaum will be ramped up to 316 ktpa from 138 ktpa. A 18 MW Cogen power plant and a railway siding facility will also be taken up as a part of the project which will reduce cost of production substantially.
The company plans to raise around Rs 3,000 crore (USD 600 million) through an equity sale to fund its ongoing projects. This may include qualified institutional placement (QIP) or sale of shares in overseas markets through the GDR route, Chief Financial Officer S Talukdar said.
The company has a capital expenditure plan of Rs 23,000 crore over the next three years. It plans to fund 70 per cent of its capital expenditure through debt. Rest of the financial requirement would be meet with equity infusion and internal accrual, Talukdar said.
