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Regular-article-logo Wednesday, 10 June 2026

NORSK HYDRO PULLS OUT OF UTKAL ALUMINA 

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FROM OUR CORRESPONDENT Published 17.12.01, 12:00 AM
Mumbai, Dec. 17 :    Mumbai, Dec. 17:  Norwegian industrial conglomerate Norsk Hydro ASA today said it plans to withdraw from the Utkal Alumina International Ltd, thus putting a question mark on the feasibility of the multi-million dollar project. Norsk, with a 45 per cent stake, decided to opt out of the greenfield project in Orissa in view of its dismal perception of the future outlook for alumina markets. Now it remains to be seen whether the two remaining partners, Alcan and Indal, are willing to pick up the gauntlet. In a media statement in Oslo, Norsk Hydro gave no further details of the project. However, the company informed that construction in the proposed project area was yet to start. Indal holds 20 per cent stake in the 4 million tonne Utkal Alumina project. It was said to be in talks for a majority stake of 40 per cent in the project along with the responsibility of executing the project at Rayagad district in Orissa. Alcan, the Canadian aluminium major, with 35 per cent stake still appears to be interested in the project. Subsequent to Indal raising its stake in Utkal Alumina, the holdings of Alcan and Norsk Hydro would reduce to 30 per cent each. Alcan's role was defined as technology supplier for the project. The project is currently awaiting environmental clearance from the Centre, which is pending in lieu of a public interest litigation. This project was earlier touted as an important part of Hydro's strategy to secure the supply of raw materials necessary for the production.    
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