India’s National Aluminium Company (NALCO) has had expansion plans on the anvil for some time now.
Towards this goal, it has started taking the first steps.
Part of this effort is the indigenization of technology and equipment specific to the aluminum sector. It is a commonly known fact that only is India’s per capita aluminum consumption is low as compared with other countries, and much of the industry is dependent on imports and foreign technology.
A few days ago, the state-owned company signed a joint venture agreement with another public sector undertaking, the Mishra Dhatu Nigam (MIDHANI), to set up a high-end aluminum alloys plant for manufacturing of plates, sheets and more, the Business Standard reported.
MIDHANI and NALCO will, at least at the start, be equal shareholders in the joint venture company, according to the Business Standard.
NALCO has lined up a multibillion-dollar fund to increase capacity, get into new areas (like mining and tech), and step up coal production.
Under this funding plan, it is on the way to setting up an alumina refinery stream that is likely to be commissioned in 2021-2022.
But a more recent move by the company has caught the media’s attention in India.
According to The Financial Express, NALCO will soon set up a technology division.
The aim of the new division is to research and develop indigenous technologies for making equipment that will cater to the domestic aluminum industry. The board has already cleared the proposal; now the proposal is before the mines ministry.
All this is part of the government’s “Make In India” plan. Initially, it will collaborate with foreign suppliers to develop technology and expertise. Then, it will link up with domestic fabricators to manufacture equipment that will largely be India-specific.
The Financial Express reported said engineers will be studying technologies and engineering available across the world, particularly in Australia and Brazil.
A few weeks ago, NALCO, Hindustan Copper Ltd and Mineral Exploration Co Ltd (MECL) signed an agreement to set up a 40:30:30 joint venture company called Khanij Bidesh India Ltd (KABIL) to establish a supply chain for critical and strategic minerals in India. Pralhad Joshi, minister of Coal, Mines and Parliamentary Affairs, in a statement before Parliament said while KABIL will ensure the mineral security of the nation, it will also help in realizing the objective of import substitution.
India’s per-capita aluminum consumption at 3 kg, compared with the global average of 11 kg, is extremely low. Projections indicate consumption would go up at a compounded annual growth rate of 7.5% to reach 10 million tons per year by 2031-32, according The Financial Express.