Poised for a big leap in its diversification plan, aluminium giant NALCO is all set to invest around Rs 40,000 crore to make a foray into energy sector besides implementing a host of new projects and expansion works.

"The company has taken up several greenfield projects. As part of this drive, plans are afoot to set up a new smelter in Western Odisha with an investment of about Rs 16,000 crore," NALCO CMD B.L. Bagra said.

The project is now being pursued with the Odisha government by the Navaratna PSU, he said. The company is also planning to set up a Rs 4,500 crore alumina refinery in Gujarat with one million tonnes per annum capacity. Preparation of Detailed Project Report (DPR) has been taken up, Bagra said.

In addition, the company also has plans to set up a 1.4 million tonnes per annum alumina refinery in Andhra Pradesh, based on bauxite reserves in that state.

"To start with, some CSR works have been undertaken in the vicinity," the NALCO CMD told reporters here.

Turning to the aluminium major's diversification plans, Bagra said in energy sector, the company has formed a Joint Venture with Nuclear Power Corporation of India Ltd (NPCIL) to set up nuclear power plants in India.

Both the partners have selected Kakrapar Units 3 and 4 of 700 MW each in Gujarat as their first JV project with an estimated project cost of Rs 11,500 crore, he said.

The construction work has already started and the project is scheduled to be commissioned by December, 2015.

Moreover, with a view to harness the unconventional energy source, NALCO is setting up a Rs 274 crore Wind Power Project in Andhra Pradesh with a capacity of 50.4 MW, which is in the final stage of commissioning. Plans are afoot for a second Wind Power Project of equal capacity, Bagra said.

This apart, a third plant has been planned in the company’s own worked out mined area at Panchpatmali in Koraput district of Odisha. Also, a Solar Power Plant of 15 MW is on the cards.

NALCO has also shown keen interest in the proposed 4,000 MW Ultra Megal Power Plant (UMPP) in at Bedabahal in Sundargarh district of Odisha, Bagra said adding bidding for the project is likely later this year.

The company is in the process of forming a consortium of PSUs including BHEL, NMDC and Neyvelli Lignite Corporation in an effort to strengthen its bid.

Carrying forward its diversification plan, NALCO has expressed keen interest in the steel sector too.

The company proposes to take over Kalinga Iron Works Ltd (KIWL) at Barbil in Odisha, he said adding a proposal for take over ant establishment of a 1 MTPA steel plant has been submitted to the state government.

Referring to Brownfield Projects, the CMD said the company has initiated activities for 3rd phase brownfield expansion at the existing facilities in Odisha at an estimated investment of Rs 7,500 crore.

He said the company plans to add one more stream in the existing alumina refinery. The capacity of the stream would be 1 MTPA at an investment of around Rs 4,000 crore and preparation of DPR for this is under way.

Smelter potliness, operating at 180 KA for the last two-and-a-half decades, have been taken to enhance current to 220 KA at an outlay of Rs 900 crore and the capacity of the plant would be raised by 1.07 lakh to 5.67 lakh MTPA.

The proposed 500 MW power plant at CPP would be primarily meet the power requirement for the technology upgradation of smelter potliness, he said adding the project cost is estimated at Rs 2,522 crore.

With the commissioning of 4th Stream of Alumina Refinery during the year, the Rs 4402 crore 2nd Phase Expansion Project of the company now stands completed, the Nalco CMD said.

With the completion of this expansion programme, the annual capacity of the Bauxite Mines has increased to 63 lakh tonnes per annum, while that of the Alumina Refinery has gone up to 21 lakh tonnes per annum.

Similarly, the capacity of the Aluminium Smelter has gone up to 4.6 lakh tonnes per annum and that of the Captive Power Plant to 1200 MW.

Referring to raw materials, he said the company has taken up steps to avail Pottangi bauxite mines in Odisha, Gudem and KR Konda bauxite mines in Andhra Pradesh and Utkal E-Coal Block in Angul district of Odisha.