RSB Metaltech plans Rs 6800cr project

Business Standard, Dec 22, 2008

RSB Metaltech Private Ltd., a leading automotive component and system manufacturer, signed a memorandum of understanding (MoU) with Orissa government for setting up a greenfield integrated aluminium project in the state.

The project encompasses 0.7 million tonne per annum (MTPA) alumina refinery, 0.2 mtpa special grade alumina plant, 0.175 mtpa aluminium smelter, 450 Mw captive power plant (CPP) and 0.09 mtpa downstream facilities. The downstream facilities will include aluminium die casting, extrusion, rolling and forging. The combined investment for all these projects is estimated at Rs 6800 crore in the first phase.

Ashok Dalwai, secretary, steel and mines department, Orissa government and S K Behera, managing director, RSB Metaltech signed the documents in the presence of the chief minister Naveen Patnaik in the state secretariat.

The land requirement for the downstream industries, smelter and CPP is about 4000 acres and the company will require about 1500 to 2000 acres for the alumina refinery in Raygada.

The project will be implemented over a period of 5 years and is proposed to be financed through a mix of 40 percent equity and 60 percent debt. RSB is hopeful of achieving financial closure in next 15 to 18 months. Interestingly, this will be the first end to end project in the state based on aluminium.

R K Behera, chairman, RSB Metaltech said, the auto component manufacturing complex at Mania in Cuttack district was originally planned for manufacturing forged and cast components. It is being expanded to take up manufacturing of construction equipment aggregates for exports to Terex, Europe.

The first phase of the project will be completed within 24 months from the date of signing the MoU and the company will take care of environment, set up technical institutions and will develop integrated housing project. This project will generate direct employment for 11,000 persons and indirectly employ another 11,000 persons.

Speaking on the occasion the chief minister Naveen Patnaik said, “The upcoming port at Gopalpur and RSB alumina refinery at Raygada will together strengthen the industrial corridor in the southern parts of Orissa. This will further get integrated with the alumina hinterland in Kalahandi, Koraput and Raygada district.”