BS reported that Bahrain based Midal Cables Limited has submitted a proposal to set up an aluminium conductor and rod manufacturing unit at Angul at an investment of INR 250 crore to INR 300 crore.
The overseas investor is keen to set up this facility at the aluminium downstream and ancillary products park at Angul to be developed jointly by the state's nodal land acquisition agency Industrial Infrastructure Development Corporation of Odisha and navratna firm National Alunminium Company.
The aluminium park was to be set up as 50:50 JV between Idco and Nalco on 204 acres of land close to the aluminium major's smelting facility at a cost of INR 75 crore. A special purpose vehicle called Angul Aluminium Park Private Limited was formed by Idco and Nalco for the purpose.
Midal Cables has sought 30 to 40 acres of land within this park. The aluminium conductor unit is expected to cater to domestic as well as international market. Company authorities stated that they expected to commission the facility within 12 to 15 months of getting land and other approvals.
Midal Cables had submitted the proposal in response to the expression of interest of AAPPL. As many as 53 proposals were received in response to the EoI. Earlier, the chief investment officer of Midal Cables had visited Odisha in May this year and held meetings with top officials of Idco, Industrial Promotion and Investment Corporation of Odisha Limited and Nalco in connection with the project.
Subsequently, Midal Cables chairman came to Bhubaneswar on June 1st 2012 and met the Odisha chief secretary B K Patnaik and chairman and managing director of Nalco B L Bagra to expedite the proposal.
The company intends to use molten aluminium to manufacture its products. Molten aluminium requirement of Midal Cables is pegged at 60,000 tonnes per annum and the company wants to enter into 25 year metal contract with Nalco at variable pricing mechanism.
A top Nalco executive said that Midal Cables is one of the many investors that have evinced interest in setting up downstream facilities at the Angul aluminium park. While Nalco will be supplying molten aluminium as raw material to all such units, there is no way we are going to enter into any contract with Midal Cables.
Development of the aluminium park by Idco and Nalco has been hit due to delay in land acquisition. Out of the total land requirement of 204 acres, 64.51 acres have been alienated which is not contiguous. Moreover, against the total requirement of 108 acres of private land that need to be acquired in two villages Tulasipal and Languliabeda, order under Section 7 of the Land Acquisition Act has been issued by the revenue department.
The ancillary and downstream industries identified to come up in the park include caustic soda, calcined petroleum coke, coal tar pitch, aluminium fluoride, aluminium conductors, alumunium extrusions, aluminium castings and slugs among others.
Source - Business Recorder
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