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India forms state-run defence JV for 60k tons/yr aluminium alloy plant

New Delhi: India has established a joint venture between two state-run enterprises to produce 60,000 tonnes-a-year of high end aluminium alloy used in the strategically important aerospace, aviation and defence sectors.

India’s defence ministry-run Mishra Dhatu Nigam Limited (MIDHANI) and mining ministry-run National Aluminium Company Limited (NALCO) have incorporated the joint venture under an equal equity partnership for setting up the development and manufacturing plant in Nellore, Andhra Pradesh. MIDHANI is a mini-Ratna public sector undertaking under the Department of Defence Production, while NALCO is a Navratna public sector unit under the Ministry of Mines.

“The project is likely to be completed and would start production within five years from the zero date. The zero date will be the date of obtaining statutory clearances and completing other pre-project activities like obtaining unencumbered possession of land, environmental clearance, financial closure, etc.,” Parliament of India‘s Council of the States (Rajya Sabha), the upper chamber of the bi-cameral system of national legislatures, was informed today.

The project has the potential to create direct employment opportunities for about 400 people and indirect employment opportunities for about 1,500 people through ancillary/auxiliary industries including employment opportunities for the local youth, the parliamentary reply to questions from a member said.

Minister of State for Defence Shripad Naik, in separate replies to other questions from Rajya Sabha members, gave these details:

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