Aluminium major National Aluminium Company (Nalco) performed the ground breaking ceremony and laid the foundation stone for the Rs 1800 crore caustic soda plant proposed at Dahej (Gujarat).

Nalco has forged a joint venture (JV) company with Gujarat government owned Gujarat Alkalies and Chemicals Ltd (GACL). Nalco holds 40 per cent stake in the JV and the rest is owned by GACL. The plant would produce 270,000 tonne of caustic soda per annum. The land transfer and ordering of plant equipment are in the final stage. The office of the new company was also inaugurated today in Baroda.

"As a backward integration plan of Nalco, the project is expected to be a highly profitable venture for us. Nalco shall purchase at least 50,000 tonne of caustic soda per year to start with at market price", said T K Chand, chairman and managing director, Nalco.

It may be mentioned here that the availability of caustic soda in India is very low and the major part of the domestic requirement is met at a high cost. The venture will bring in import substitution of caustic soda in the domestic market.

Nalco is also in the process of setting up a 0.5 million tonnes per annum Alumina Refinery in Kutch district of Gujarat in joint venture with Gujarat Mineral Development Corporation (GMDC), a Gujarat government undertaking. The detailed project report (DPR) for the project has been prepared.