Vedanta Building $5 Billion Smelter, Power Station in Bengal

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Vedanta Resources (London) has signed a memorandum of agreement with India's West Bengal Industrial Development Corporation to build a $5 billion aluminum smelter. Bengal's state government is assisting the company in the acquisition of land at Bidhanbag near Asanol city to make up the 1,000-acre site. Vedanta already owns 270 acres in the area.

The 650,000-ton-per-annum (TPA) smelter will get its power feed from a 3,000-megawatt (MW) captive power plant, which will be set up in two 1,500 MW stages. The plant will receive coal feed from the nearby Orissa coal belt, and Vedanta will supply alumina from its Orissa operations.

A metals park, which would be built after the smelter becomes operational, has been proposed. Downstream units in the park could receive power from the captive power station. The units will be supplied with aluminum from the plant and other metals, such as zinc and copper, which are part of the Vedanta non-ferrous metals resource. About 2,500 people will be employed at the smelter plant, and indirect employment created by the project is estimated at 25,000.

Vedanta Aluminum is made up of two companies. The largest, Balco, has a current capacity of 350,000 TPA and Malco has 40,000 TPA. Malco has an integrated operation with its own bauxite mines whereas Balco sources 60% of alumina requirements from third parties.

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process and energy related industries with products and services ranging from industry news, forecasting, plant and project databases, as well as multimedia advertising campaign assistance.