20-25 acres of land has been earmarked for the setting up of ancillary units at Lanjigarh

Vedanta Aluminium to set up downstream park
Bishnu Dash / Kolkata/ Bhubaneswar October 9, 2009,
Business Standard, Oct 9, 2009



To promote downstream utilization of aluminium, Vedanta Aluminium Limited (VAL), a subsidiary of Vedanta Resources Plc, plans to set up an aluminium park at Jharsuguda.

The proposed park is expected to house at least 10-15 medium size downstream units with the total investment projected to be in excess of Rs 5000 crore. About 150 acres of land has been identified by the Orissa government for the purpose, sources said.

The units to come up in the park will utilise liquid alumina or ingot produced by VAL for manufacturing various products like electrical appliances, cable, aluminium extrusion and automobile parts.

The location of the park close to the VAL’s smelter plant at Jharsuguda is expected to reduce the input cost for downstream products.

“It will be very cost advantageous for the vendors as they will save a lot on transportation. These units will also promote local employment in a big way”, Abhijit Pati, chief operating officer (COO), VAL, Jharsuguda, told Business Standard.

Meanwhile, two downstream units have already applied to the district administration to set up shops in the proposed park.

On the other hand, the company’s refinery unit located at Lanjigarh has initiated steps for setting up an ancillary complex in its vicinity. The complex will house industries related to the field of fly ash bricks, cement, mineral water, hotels and food processing.

Joint advertisement by the company and District Industries Centre located at Lanjigarh was published and more than 80 applications have been received for setting up of industries in the identified field.

Sources said, about 20-25 acres of land has been earmarked for the setting up of ancillary units and the concerned DIC has requested the government to allot the land to the company.

“In next 2-3 months, fly ash bricks and flyash based other units are expected to come up at Lanjigarh and Vedanta will provide the required knowhow”, Dr. Mukesh Kumar, COO, VAL, Lanjigarh said.

It may be noted, the company has already set up a 1 million tonne per annum greenfield alumina refinery at Lanjigarh and a 0.5 million tonne per annum aluminum smelter at Jharsuguda.