Nalco to invest Rs 11,450 crore in nuclear power

Nalco plans to diversify into nuclear power investing Rs 11,450 crore.

Nalco CMD BL Bagra said his firm has dentified Kakarapar Atomic Power Station – 3 & 4 Project for development, jointly with Nuclear Power Corporation of India at a cost of Rs 11,450 crore. The recommendation for the investment is under consideration by the Government. Bagra said the company had been pursuing to set up a smelter and power project in Orissa. However, considering uncertainty on location, company might have to explore for an alternate location elsewhere in the country, he said.

The company also announced plans to move out of Orissa for its new smelter and power project in view of uncertainty on location.

Nalco is actively pursuing to set up a smelter and power project in Indonesia, primarily because of availability of good quality coal at economic price. Two coal mining firms have been identified for long-term arrangement for sourcing coal for the planned project, he said.

“The company earned a net profit after tax of Rs 1,069 crore in 2010-11 as compared to Rs 814 crore in previous year, registering a jump of 31 per cent,” Nalco CMD BL Bagra said addressing its annual general meeting.

Similarly, sales revenue during the year at Rs 5,959 crore was higher by Rs 904 crore, an increase of 18 per cent as compared to the previous year, he said. Rise in profit was because of higher sales, Bagra said adding the results would have been still better, but for the adverse impact of exchange rate of rupee on sales, which made a dent of Rs 159 crore during the year.