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Vedanta Group Signs Rs 20K-Crore Deal With State, set up an aluminium smelter and power plant


By siddharth22, Section Business
Posted on Wed Mar 12, 2008 at 11:44:19 PM EST

Bengal finally figures on the global aluminium map. On Wednesday, the Vedanta group signed an agreement with West Bengal Industrial Development Corporation (WBIDC) to set up an aluminium smelter and power plant at a cost of Rs 20,000 crore.

Company officials said the smelting unit would have a capacity of 6.5 lakh tonne and the power plant's capacity would be 3,000 MW. Both ventures will come up in Bidhanbag near
Asansol within three years.

The venture would need 1,000 acres. "Our government will help Vedanta acquire the land," chief minister Buddhadeb Bhattacharjee said, adding that the company already has 270 acres.

Vedanta group chairman Anil Agarwal said he was also keen on helping the state set up a metal park near the smelting plant. The entire 3,000 MW of power generated will be used for captive purposes.

A portion of that, however, could be given to downstream units in the proposed metal park.

The twin projects will generate 2,500 jobs and indirect employment would be more than 25,000.

"Downstream units can be developed near the mother plant. We will supply the power. Besides aluminium, we may supply other metals, like zinc and copper, to the downstream units," said Agarwal.

The project will be implemented by group outfits Vedanta Aluminium and Balco. The choice of Bengal as a location was prompted by the fact that the state has a history of metal-related projects and coal is available here, Agarwal said.

"Power is a key input for aluminium. So we wanted to be close to the coal belt. We will bring the surplus alumina from our Orissa operations for this project. We also have some land in the area, which is an advantage," said Agarwal.

Bauxite is converted to alumina and then to aluminium. The group has a presence in all major non ferrous metals in India, like aluminium, copper and zinc. The group's outfits in India include Sterlite, Balco, Hindustan Zinc, Malco, Vedanta Alumina and India Foils.

Source:The Times Of India,13-03-08

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