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The Cabinet Committee on Economic Affairs approved on Wednesday the proposal of National Aluminium Company Limited (NALCO) to further expand its mining, refinery and smelter capacities at a cost of Rs.4,091 crore. The second phase expansion to be completed in 50 months will increase NALCO's Bauxite mining capacity from the present 48,00,000 tonnes to 63,00,000 tonnes, Alumina production from 15,75,000 to 21,00,000 tonnes, Aluminium production from 3,45,000 to 4,60,000 tonnes and power generation from 960 MW to 1200 MW. The project will be financed on Equity : Debt ratio of 1 : 1. Entire equity will be met from the internal resources of the company.
With the implementation of second phase expansion, NALCO which is Asia's largest integrated Aluminium complex will become the sixth largest in the world in terms of refining capacity. The expansion project is more cost effective in terms of capital investment since land and other basic infrastructure facilities are already available with NALCO. The supervisory and managerial manpower available with NALCO will be optimally utilized after the second phase expansion. These advantages will further bring down the cost of production of Alumina and Aluminium adding to NALCO's global competitiveness.
First phase expansion of NALCO was implemented between 1996 and 2003 at a cost of Rs.4,206.58 crore.
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