ManagementNalco to foray into energy sector
National Aluminium Company (Nalco), a leading producer of aluminium in the country, intends to enter the energy sector as an independent power producer.
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The company is exploring thermal, hydro and nuclear route to achieve this ambition.
The company has already successfully negotiated with Nuclear Power Corporation of India Limited (NPCIL) to promote a 1000 Mw nuclear power plant in joint venture at an estimated cost of Rs 8,000 crore.
The NCPIL board recently approved the JV proposal and a MoU (memorandum of understanding) between the two companies is slated to be singed within a month, said CR Pradhan, the chairman and managing director of Nalco. However, the location of the project is yet to be decided.
While Nalco will hold 49 per cent stake in the project, the majority 51 per cent stake will be vested with NPCIL. As per the agreed formula, NPCIL will be in control of the reactor of the nuclear power plant and Nalco will look after the power generation process after steam is produced using nuclear power.
This apart, the Navratna aluminium PSU is scouting several locations in Orissa, north-east and Nepal for hydro-electricity projects. It has already intimated its interest to the Orissa government for developing three hydro-electricity projects, between Hirakud and Rengali.