MUMBAI (Commodity Online): Nalco, India’s second largest aluminium producer, will invest Rs 1,000-crore in future projects of state-run Nuclear Power Corp.

National Aluminium Company Ltd (Nalco) and Nuclear Power Corporation of India Limited (NPCIL) had last month signed an agreement to collaborate with each other for setting up nuclear power plants in the country.

As per the MoU, Nalco intends to invest as a part of its strategy to diversify into commercial generation of electricity through nuclear power plants jointly with NPCIL.

Nalco may be putting in Rs 1,000-crore. The aluminium major had a cash surplus of Rs 4,000-crore and wanted to invest in nuclear energy for long-term reasonable returns on investment.

The company has a team that is working on it. Nalco want to invest in any of the immediate future projects. They may invest in any of the reactors coming at the five sites identified by the government or it may invest in projects presently under construction at Kaiga and Rajasthan.

The government has identified five new locations in West Bengal, Gujarat, Andhra Pradesh, Haryana and Madhya Pradesh to set up nuclear reactors.

NPCIL is developing 2,160MW of projects at Kaiga, Kudankulam, Rajasthan and Kalpakkam to be operational in the next two-years.

State-run fuel retailer, Indian Oil Corp (IOC), has also inked a similar agreement with NPCIL and earlier this month announced that it would pick up 26-49 per cent stake in a Rs 10,000-crore nuclear plant that the two companies would jointly set up.

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