By Bizodisha Bureau, Bhubaneswar, October 16, 2017: Bauxite rich Odisha is working on a plan to build an ecosystem for ancillary and downstream units. Odisha government on Monday held discussions with over 70 Indian companies and invited them to invest in Odisha’s downstream ecosystem in its bid to promote investments in downstream aluminium sector.
The Industries Department organised the event here in association with the Confederation of Indian Industry and highlighted the advantages of investing in Angul Aluminium Park, a first-of-its-kind project in the subcontinent with the facility to directly obtain molten aluminium from the smelter.
The state government’s effort to attract investments in ancillary and downstream industries is one of the six focus sectors listed in its latest industrial policy statement of 2015.
The state is the largest aluminium producer in India and accounts for 54 per cent of the country’s total smelting capacity and is setting up the Angul Park with an investment of Rs 180 crore.
Spread over 223 acres, the park will create ample opportunities for downstream industries in the state. Besides, it would reflect a complete industrial state-of-the-art entity, fully equipped with logistics infrastructure facility, an exclusive training centre, a park administration, and a display and trade services facility.
The park would also contain an Aluminium Product Evaluation Centre (Apec) furnished with a full-fledged tool room, testing, simulation and evaluation facilities, processing hall and prototype development facility to foster innovation and deliver excellence in terms of quality.
This is the first of its kind project in the country where molten aluminium would be sourced directly to feed the downstream units at the park. The state has already received investment proposals in downstream industries of conductors, extrusions, castings, and foils to name a few.
CII Chairman (Odisha) and Nalco CMD T.K. Chand said: “There is a huge opportunity for downstream products in the state. Investors will be getting developed land, power and training facilities. Additionally, the state government will also assist investors in setting up their operations.”
The downstream industry will have a cost benefit of Rs 10,000 per tonne and enough raw material committed to them. Nalco will provide hand-holding to all downstream and ancillary units, said Chand.
Industries Secretary Sanjeev Chopra said, the state has already received several investment proposals for the Angul park and aim to create around 15,000 job opportunities through the project.
Investments in aluminium downstream sector have been gaining momentum in Odisha. Over five years, the state has attracted investments of Rs 893 crore, including proposals by Bahrain-based Midal Cables and Power Grid Corporation of India (PGCIL) subsidiary Grid Conductors.
Four of the five proposals drawn are for the aluminium park developed jointly by Nalco and Odisha Industrial Infrastructure Development Corporation at Angul.
S.K. Mohanty, CEO, Angul Aluminium Park, said: “Odisha accounts for 50 per cent of the aluminium production in the country. The aluminium refining capacity has gone up to 5.775 million tonnes per annum (MTPA) from 0.80 MTPA and smelting capacity to 2.634 MTPA from 0.509 MTPA. Availability of abundant raw material from Nalco, Vedanta will be very crucial for the downstream aluminium and ancillary industry.”
Companies from India like KEI Industries, Jindal Steel, Havells India, Indian Oil, Hindustan Petroleum Corporation Limited and Sterlite Technologies Ltd attended the event.
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