Nalco, a leading producer of aluminium is planning to set up its second smelter plant in Sundergarh district in Orissa. It had earlier considered, Jharsuguda however it had been spaced up by other upcoming aluminium projects of Vedanta (1.6 mtpa) Hindalco (0.36 mtpa ) and L&T Dubal (0.3 mtpa). Considering the environmental impact, the state government had asked Nagpur based National Environment Engineering Research Institute (NEERI) to conduct a pollution carrying capacity study for the region and it has put a cap at 2.0 mtpa for the region. Now, Nalco is looking to set up the project 200 kms away and the size of the project depends on water availability. The company would need 1200 acres of land for 0.5 mtpa aluminium smelter and 1260 MW captive power generation unit. It has written to state government for construction of a barrage across river Ib for the water requirement of the project and agreed to bear the cost of Rs. 1000 million.
Lahmeyer International had conducted a study on water availability for the project and
concluded favourably for the project.