Hindalco investing $5 bn to double capacity

“There are many fund raising options available. It could be debt,project financing,bonds,local or external commercial borrowings. Once the project comes to fusion,then we look for the funds.

“We are investing USD 5 billion right now and it could be another USD 5 billion,” Bhattacharya said on the sidelines of INCAL-2011,a three-day event on the Aluminium sector.

“Without coal blocks,we will not put up a power plant. Without a power plant,we will not put up our smelter. So,the starting point is bauxite mine and then coal mine. If we get these two,we will certainly go ahead (with expansion),” he added.

The country’s largest Aluminium producer with annual capacity of 7.5 lakh tonnes is in the process of expanding its Uttar Pradesh and Odisha plants.

It is also setting up three greenfield facilities – one in Maharashtra and two in Jharkhand.

Bhattacharya said the company’s 3.6 lakh tonne annual capacity plant in Madhya Pradesh is expected to commence production in 3-5 weeks.

He said as there were delays in obtaining forest clearances for its coal blocks meant for power plants,the company decided to buy coal from other sources.

To a query,he said the company will use some of the plants closed down by Novelis,which was acquired by Hindalco,with a mix of 30 per cent old and 70 per cent new machinery.