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Home arrow News arrow Business News arrow Hindalco achieves financial closure for Aluminium Smelter Project in M.P.
Hindalco achieves financial closure for Aluminium Smelter Project in M.P. Print E-mail
Written by Vijay   
Friday, 01 April 2011
Mumbai: Hindalco Industries Ltd is setting up a Greenfield Aluminium Smelter Project in Madhya Pradesh (Mahan Project) with a capacity of 359,000 TPA of aluminium, supported by a 900 MW captive power plant at a cost of Rs. 10,500 Crore.

The Company has successfully achieved financial closure of the Mahan Project with the signing of Common Rupee Loan Agreement for Rs. 7,875 crores on March 30, 2011. This constitutes the entire debt requirement of the Project.

The project has access to the Mahan coal block (off the main basin in the Singrauli coal fields) through a joint venture with Essar Power. Hindalco’s share in the coal block is about 3.6 million mtpa.

Site work is going on in full swing. Engineering and ordering of packages for both smelter and power plant are moving ahead of schedule. All the major approvals are in place and site activities are progressing well. Major contractors have mobilised at site. A major chunk of land is already acquired.

The project is expected to be commissioned in October 2011.

Hindalco is raising funds to fast track domestic projects.

According to sources, the company is expected to raise Rs 8000 crores for Aditya Aluminium project, a greenfield integrated aluminium complex. The project includes a 4.2 million-tpa bauxite mine, 1.5 million-tpa alumina refinery at Kansariguda and 359-ktpa smelter at Lapanga. The refinery is expected to produce 2 million tpa within three years of its startup.

The project also has a 20 million-tpa joint venture coal mine at Ib Valley, coal blocks Talabira II and III, Orissa, and a 900-MW captive power plant at Lapanga.

A major portion of the total land required for the project has been acquired. Most of the important clearances have been obtained, and major orders have been placed for the smelter and power plant.

Aditya Smelter is expected to be commissioned in End 2012. Aditya Refinery is expected to be commissioned in End 2014.

The company had earmarked a capex of around Rs.40,000 crore towards it's various projects.

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