23 August 2019
Bhubaneswar: A Rs 4,000 crore high end aluminium alloy development and manufacturing facility is being set-up as a Joint-Venture between MIDHANI and NALCO in Nellore District of Andhra Pradesh. Vice President M Venkaiah Naidu will lay the foundation stone on Monday at Bodduvaripalem, Nellore District in Andhra Pradesh.
The Vice President has taken a keen interest in the setting up of this plant in Nellore district and has held extensive discussions over the past one and half years with DRDO, NALCO, MIDHANI and others concerned. He also took up the need for early clearance with the NITI Aayog, which finally agreed on the viability of the project after holding discussions with the stake-holders involved in the project.
The Vice President held meetings with NALCO, MIDHANI, Ministry of Mines along with Chairman, DRDO and agreed to lay the foundation stone during his forthcoming visit to the district. The plant envisages meeting the strategic requirement of defence aerospace and transporting applications under the Make-in-India programme and would produce 60,000 tonnes per annum.
At present Aluminium Flat Rolled Products (FRP) estimated demand is around 6,50,000 TPA, of which 40 % is being met through imports. It is estimated that the demand in the next five years will increase to 1.5 Mn Tonnes per annum, with a deficit of around 300000 Tonnes, after considering existing production capacity in India.
The proposed plant seeks to fulfill the strategic requirement, fill the estimated deficit and to make India self-reliant in production of critical materials. To meet this end, MIDHANI and NALCO had executed an MoU on April 15, 2017 to set up the 60,000 tonne per annum capacity plant.The plan will also generate direct and indirect employment through ancillary industries.
The project is estimated to be completed within 36 months. Financing of the project is proposed with Debt Equity ratio of 70:30.