No plans to divest Nalco stake, instead Rs 5,540 cr investment on cards: Centre

New Delhi/Bhubaneswar: Rubbishing recent media reports that the Centre is planning to divest its stake in National Aluminium Company Ltd (NALCO), a Navratna public sector undertaking, the Mines Ministry today stated that rather a proposal for investment of Rs 5,540 crore for the PSU’s expansion is under consideration.

The ministry sources said the Rs 5,540 crore amount will be utilised for the third phase expansion at Nalco including setting up of an alumina refinery with production capacity of one million tonne per annum at Damanjodi.

The Centre has also decided to renew lease agreement with Nalco for Pottangi mines for another 5 years.

Earlier, Odisha Chief Minister Naveen Patnaik had expressed concern about the disinvestment in Nalco undertaken at regular intervals in a letter to Prime Minister Narendra Modi on June 23. He had also urged the Centre to put the decision of further disinvestment in Nalco on hold.

The Chief Minister had also mentioned in the letter that the high level clearance authority has recently approved two expansion proposals of Nalco both at the smelter at Angul and refinery at Damanjodi.