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The company has joined hands with the Dubai Aluminium Company Ltd for setting up the integrated aluminium project in Rayagada district envisaging a three million tonnes per annum capacity alumina refinery, smelter, bauxite mining and development of associated infrastructure.
While the refinery would be located in Rayagada district, the site for the smelter and 80 mw captive power plant was yet to be decided, the first phase of 1.5 million tonnes alumina stream was expected to be commissioned in 2010, L&T chairman cum managing director A.M.Naik said.
As per the agreement, Dubal would have an equity of 74 per cent in the project to be known as Raykal Aluminium Ltd - named after the two backward but bauxite-rich districts of Rayagada and Kalahandi.
L&T's equity in the venture would be 26 per cent, DUBAL's vice-chairman Ahmed Humaid Al Tayer, who called on the Chief Minister Naveen Patnaik said.
L&T had set up a heavy engineering unit at Kansbahal near Rourkela in 1962 and thought of establishing a steel plant near Gopalpur in the mid-1990s but the proposal fell through.
The company had also joined hands with Tata Steel to promote a major port at Dhamra, the first phase of which was to be completed by 2008 at a cost of Rs 1500 to Rs 2000 crore (Rs 15 to 20 billion).