With the aim to promote investments in downstream aluminium sector, the industries department of the government of Odisha today organized an event in association with CII to engage with over 70 Indian companies and invited them to invest in Odisha’s downstream ecosystem.
India’s aluminium consumption is growing at a compound rate of 15% (year-on-year), making it one of the largest consumption markets in the world. With the demand of aluminium expected to rise further, Odisha which is the largest producer of aluminium in the country and contributing to 54% of the country’s total smelting capacity is setting up first of its kind Aluminium Park in Angul with the facility for downstream industries to directly obtain molten aluminium from the smelter. Spreading over 223 acres of industrial land, the Aluminium Park will create ample of opportunities for the downstream industries in the state.
Odisha is home to leading aluminium companies like NALCO, HINDALCO and Vedanta which ensures availability of raw materials for the downstream industries. For the Aluminium Park at Angul, the state government has already received investment proposals in downstream industries of conductors, extrusions, castings and foils to name a few. The extent of these investments diversifies to other value added products catering to white goods, auto components, construction and other allied industries. Ancillary businesses are also expected to benefit from this project and their investors include providers of raw material of calcined petroleum, special refractory bricks, cryolite, caustic soda and aluminium fluoride.
Various companies from India like KEI Industries, Jindal Steel, Havells India, Indian Oil, Hindustan Petroleum Corporation Limited and Sterlite Technologies Ltd among many others attended the round table. Addressing the investors from various Indian states, Chairman, CII Odisha and CMD, NALCO T K Chand said, “There is a huge opportunity for downstream products in the state. Investors will be getting developed land, power and training facilities. Additionally, the State Government will be also be assisting the investors in setting up their operations.’”
The downstream industry will have cost benefit of Rs 10,000 per tonne and will have enough raw material committed to them. Additionally, Mr Chand said that Nalco will provide hand holding to all the downstream and ancillary units.
Highlighting the business friendly reforms of the Government of Odisha, robust industrial ecosystem, world class infrastructure and various opportunities for the downstream industries in the state, Principal Secretary (Industries), Mr. Sanjeev Chopra interacted with the investors present at the event. There was also a Panel discussion on ‘Ancillary and downstream ecosystem in aluminium sector’, an open house discussion followed by a site visit of Angul Aluminium Park.
Addressing the investors, Sanjeev Chopra said, “Odisha is witnessing rapid industrial transformation as per the roadmap laid out in our ‘Vision 2025’ document. Odisha is a mineral rich state and by developing world class infrastructure we aim to provide an ideal business ecosystem for all the related sectors to flourish. We have already received several investment proposals for the Aluminium Park in Angul and we aim to create around 15000 job opportunities through the project.”
Investments in aluminium downstream sector have been gaining momentum in Odisha. Over the past five years, the state has attracted investments worth Rs 893 crore, including proposals by Bahrain-based Midal Cables and Power Grid Corporation of India (PGCIL) subsidiary Grid Conductors. Four out of the five proposals drawn are for the aluminium park developed jointly by Nalco and IDCO at Angul.
In his welcome address, S K Mohanty, CEO, Angul Aluminium Park said, “Odisha accounts for 50% of the aluminium production in the country. The aluminium refining capacity has gone up to 5.775 million tonnes per annum (MTPA) from 0.80 MTPA and smelting capacity to 2.634 MTPA from 0.509 MTPA. Availability of abundant raw material from Nalco, Vedanta will be very crucial for the downstream aluminium and ancillary industry.”
On the occasion, Abhijit Pati, Chief Executive Officer (Aluminium), Vedanta Limited said “With 25% of coal and 60% of bauxite in the state, there cannot be another state which can be aluminium capital. We have to create success story of consumption and demand of aluminium in the state. In this direction, the downstream industry will also help generate huge employment potential in the state. Also, R&D impetus will further boost growth in the sector.”
With an investment of Rs 180 crore on the infrastructure of the project, the aluminium park will provide world class logistics and infrastructure facilities, an exclusive training centre, Aluminium Product Evaluation Centre (APEC) furnished with a full-fledged tool room, testing, simulation and evaluation facilities, processing hall and prototype development facility to foster innovation and deliver excellence in terms of quality.
Odisha is also offering special incentives to employment intensive industries, directly contributing to an increase in the GDP of the state. With Odisha being one of the leaders in Ease of Doing Business and the pioneers of Single Window Clearance procedures, the state government is confident of providing approvals within 30 days and also oversee rapid implementation of the investment proposals.
Last month, the state government, in collaboration with Tata Steel and Jindal Stainless (JSL), hosted a similar meet for the steel and stainless steel downstream industries at Kalinganagar.