On 14 May 2002, the board of Bharat Aluminium Company (Balco) approved a Rs.5,000 crore expansion project to be implemented at its Korba plant in Chhattisgarh.

Balco has plans to increase its alumina capacity from 1,80,000 tonnes to 8,30,000 tonnes per annum and aluminium capacity from 1,00,000 tonnes to 3,34,000 tonnes per annum. The board has also approved augmentation of captive power plant capacity from 270 MW to 810 MW.

This is the first capital expenditure of its size being approved by the company after it was acquired by Sterlite Industries, in 2001.

The company proposes to fund the expansion project through a combination of equity, internal accruals and debt. Of the total investment, about Rs.2,000 crore would be by way of equity and internal accruals, while the balance would be through debt.

The expansion is expected to take at least three years from the time of arrangement of finances.