Nalco to set up refinery plant in Vizag

National Aluminium Company Limited (Nalco), India's leading manufacturer and exporter of alumina and aluminium, is likely to set up its refinery near Makavarapalem in Visakhapatnam district.

The site for the refinery is likely to be finalised by the authorities soon. A major chunk of land at Rachapalli panchayat near Makavarapalem mandal has been identified where the private Anrak company is busy constructing its alumina refinery.

Nalco had got the central government's approval to mine bauxite for its proposed alumina refinery in Visakhapatnam 20 months ago. With the approval, Nalco would be able to mine an estimated deposits of 85 million tonnes of bauxite reserves in Gudem of G K Veedhi mandal in Visakha Agency and Katamraju Konda in East Godavari district.

The 1.4 million metric tonne capacity green field refinery at an estimated investment of more than Rs 4000 crore is expected to be commissioned in next three years, a senior officer of Nalco told TOI over phone from Bhubaneswar.

Nalco has already conducted a survey for the site to set up refinery in the district. "We have visited two places near Narsipatnam for the plant a year ago. The sites were near Makavarapalem and it would be finalised soon," he said.

The APIIC and the revenue authorities have started their exercise of identifying the land at Rachapalli, Koduru panchayats and Erakannapalem village area, sources said. The authorities have identified a major chunk of barren land, 1500 acres, at Rachapalli panchayat and another 200 acres of barren land at Koduru panachayat, they said. "They would need 200 acres from the farmers at Erakannapalem," sources revealed.

It is, however, estimated that the plant needs nearly 2000 acres. Setting up an alumina plant at the vicinity of another upcoming plant would not be a problem to both the companies, a senior officer of APIIC said. "Both companies would have their own strategies, marketing plans and the clients. Nalco, the leading exporter and well established company, would not be a competitor to any new company," he said.