Nalco and NPCIL to Build 1,400-Megawatt Nuclear Power Plant at Surat in Gujarat

---

Researched by Industrial Info Resources (Sugar Land, Texas)--India's National Aluminium Company Limited (BSE:532234) (Nalco) (Bhubaneswar, Orissa) plans to build a nuclear power plant at Surat in Gujarat, in a joint venture with the Nuclear Power Corporation of India Limited (NPCIL) (Mumbai). Both Nalco and NPCIL are public-sector enterprises of the government of India; last year, they entered into an agreement to explore the possibilities in collaborating on nuclear power generation.

The proposed power plant will have a total generating capacity of 1,400 MW and will consist of two separate units of 700 MW each. According to Nalco Chairman A.K. Shrivastava, the project will be controlled by a joint venture company that is expected to be established by the end of the month. NPCIL will hold a controlling stake in the joint venture company.

With a total combined investment of $2.8 billion, which will be provided jointly by both companies in proportion to their eventual stake in the joint venture company, the venture into nuclear power represents a new direction for Nalco. "We are now betting big on the power sector," Shrivastava said. "We have joined hands with NPCIL to foray into the business of generating nuclear power for commercial use."

However, Nalco will not be ignoring its core business of aluminum, despite the new venture. The company has recently announced its third phase of expansion plans within the aluminium sector, amounting to $1.34 billion, although this includes the establishment of an additional 1,250 MW of power generating capacity at its existing Orissa aluminium facilities.

Nalco already operates a coal-fired, 1,200-MW power plant at its Angul, Orissa, aluminium operations facility to provide a secure power supply for the aluminium smelter. The captive power plant is also connected to the Orissa state grid.

In another power-generating project, Nalco has plans to establish a supercritical thermal power plant in the Dhenkanal district of Orissa State. The power plant will reportedly have a total generating capacity of 1,980 MW, made up of three units of 660 MW capacity each.

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.