National Aluminium Company Ltd (Nalco), the country’s second largest aluminium producer, is planning to get into cement manufacturing business and is looking at a tie-up with established domestic or global cement players to float a medium- to large-size cement plant.
The State-owned company is currently scouting for joint venture partners to set up the cement plant and plans to use fly ash generated at its captive power plant at Angul in Orissa and convert it into saleable products, industry sources said.
The company is looking at manufacturing Pozzolana Portland Cement (PPC) and is open to marketing of cement for both domestic and export market using the fly ash from the plant. The company is likely to take a firm view on the cement manufacturing plan and utilisation model for fly ash once it ties-up the joint venture.
Nalco currently has a captive power capacity of 960 MW. Two more power plants with a capacity of 120 MW are slated for commissioning in 2008. The company generates about 6,000 million tonnes of ash per day and 4,800 million tonnes of fly ash daily from these plants.
“The Indian cement industry is passing through one of its fastest growing phase. Nalco’s decision to enter this sector will help it to have an additional source for revenue,” an analyst tracking the sector said.