By Bizodisha Bureau, Bhubaneswar, June 3, 2019: As part of Odisha government’s drive to attract investments in ancillary and downstream industries, Vedanta Aluminium Ltd (VAL), a subsidiary of Vedanta Resources Plc, is planning to set up an auto ancillary park a Jharsuguda in Orissa.

Odisha – home to operational units of top three aluminium producers – Vedanta, Hindalco Industries and National Aluminium Company (Nalco) – is intensifying efforts to build an ecosystem for ancillary and downstream units. The initiative is in tune with the state government’s efforts.

Vedanta now plans to set up a hot metal park at Jharsuguda in partnership with the state government. The proposed joint venture will have auto ancillary units in the park with Vedanta’s aluminium unit being the anchor.

The Orissa Government has identified 150 acre for the purpose. The proposed park is likely to house at least 10-15 medium size downstream units with the total investment expected to be in excess of Rs 5,000 crore. These units are likely to use liquid alumina or ingot produced by VAL for manufacturing various specially alloy wheels and other automobile parts.

The aluminium park which is to be set up close to the VAL’s smelter plant at Jharsuguda is expected to reduce the input cost for downstream products.

Sources in Vedanta said, the company is in talks with all top automobile original equipment makers (OEMs) over the last few months and has signed agreements with few of them. Apart from other auto products, Vedanta is specifically looking at alloy wheels, sources added.

Odisha government has recently accorded its approval to Vedanta’s Lanjigarh alumina refinery expansion at a cost of Rs 6,486 crore. The metals and mining conglomerate wanted to raise capacity from one to 6 million tonnes annually. At Jharsuguda, the investment planned is Rs 1,204 crore.

Vedanta currently has an aluminium metal capacity of 2.3 mt. Last year, it ramped up alumina capacity by 25 per cent at Lanjigarh.