Hindalco Industries, on 23 May 2006, announced that the company has entered into an MOU with the Madhya Pradesh government for a greenfield aluminium smelter project in the state.

The project with an estimated outlay of Rs.7,700 crore will involve the setting up of a 3.25 lakh tpa greenfield aluminium smelter supported by a 750 MW coal-based captive power plant and a captive coal mine. The smelter will come up on 5,000 acres of land in Orgari near Bargawan village of Siddhi district (See note.)

Alumina required for the smelter will be provided by Utkal Alumina (also part of the AV Birla Group) that is setting up a 1.5 million tpa alumina refinery in Orissa in joint venture with Alcan of Canada.

Coal for the power plant will be supplied by Mahan Coal Co Ltd -- a joint venture between Hindalco Industries and Essar Power MP Ltd.

The project has reached financial closure with entire financing through internal accruals and debt. The project will be commissioned in phases over the next four years. Hindalco Industries has already filed applications for land and related infrastructure.

The aluminium smelter is expected to create 4000-5000 new jobs and generate another 12,000 jobs indirectly.

Note: Unconfirmed news on this development was available on 23 March 2006. The same has been available on www.projectstoday.com since then. Click here.

Related Link:

ProjectsToday's special feature on Hindalco Industries (Nov-05)