Update: Hindalco to ramp up production at MP aluminium smelter

Aditya Birla Group-promoted Hindalco Industries has said it would attain its full capacity at its Mahan aluminium smelter in Madhya Pradesh soon. The investment project faced a few road-blocks earlier pertaining to coal procurement apart from protests from environmentalists, but went on stream in mid-2013.

Hindalco said: "Its (Mahan aluminium smelter project) final production capacity will be 3.6 lakh tonnes of aluminium metal per year. Currently, the unit is producing close to 95% of this capacity and is ramping up towards its full capacity, which is expected to be hit soon."

In May 2006, Hindalco had signed a deal with state government and had proposed a sector specific special economic zone (SEZ) to attract an investment of more than INR 20,000 crore of which it had proposed to invest INR 18,000 crore in phased manner and the rest was expected to come from downstream projects.

"Our total investment till date has been around INR 13,000 crore," the company said. Since it could not get the Mahan coal mines in the vicinity of the project, it is now procuring coal from the market through a mix of e-auctions, purchases from traders and imports. Hindalco had joined hands with Essar for coal blocks.

It had said in 2006 that there was tremendous scope for setting up world-class quality units for manufacturing downstream products such as aluminium composite panels for architecture purposes; painted sheet for roofing panelling; units for automobiles; sophisticated cookware; heat exchange units for chemical plants; sports bicycles; forged components for aerospace, aircraft, and automobiles; defence items; and research and development units for aluminium processing and finishing.

The company presently has around 1,400 direct employees on its payrolls. It is expected on completion the project will create more jobs. "We also generate indirect employment to the tune of around 3,500 people," the company said.

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