NALCO wants to make waves in power

Posted by twaluminum on July 23rd, 2015

BS reported that National Aluminium Company has chalked out plans to enter the power business through the special purpose vehicle route. The company plans to produce over 2,000 MW by 2016.

Mr BL Bagra director finance of NALCO said that once equity investment in its power business starts, NALCO will hive off the business into an SPV named Nalco Power or NALCO Energy. We will create an SPV in investment in the power sector. Our existing power plants will not be shifted into the SPV, as they are for Nalco's captive smelter use. That model will continue as it is. The company may even list the SPV once it has few projects under its belt.

Mr Bagra said that according to the corporate plan we have made, we should by 2016 be operating at least 1,000 MW of independent power, not linked to our aluminium business. That will happen with the power plant in Gujarat, so we feel that we should reach more than 2,000 MW by 2016.

NALCO has tied up with Nuclear Power Corporation to set up a power plant in Gujarat. The 2x700 MW plant will be built at a cost of INR 13,000 crore and It has 49% stake in it. Apart from the plant in Gujarat, the company would bid for 2 ultra mega power plants one each in Orissa and Chhattisgarh.

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