The board of directors of Indian Aluminium Co has cleared the second phase of the company's overall expansion project. The Rs.2,000 crore project is targeted for completion by end-2007.

The project would involve the following:

1. Expansion of alumina refinery at Muri (Bihar) from 1.1 lakh tpa to 5 lakh tpa
2. Expansion of alumina refinery at Belgaum (Karnataka) from 3.4 lakh tpa to 5.5 lakh tpa
3. Expansion of Hirakud aluminium smelter in Orissa from 65,000 tpa to 1 lakh tpa.
4. Expansion of Hirakud power plant from 167.5 MW to 267.5 MW

Project segments 1 & 2 would together cost Rs.1,400 crore while segments 3 & 4 would involve Rs.600 crore. The project will have a debt equity ratio of 40:60.

In Phase I of the project, which is almost complete, aluminium smelting capacity at the Hirakud smelter was increased from 57,200 tpa to 65,000 tpa, by transfering electrolytic pots from the defunct Belgaum smelter in Karnataka. Power capacity is being raised from 100 MW to 167.5 MW.