Agarwal group promoted UK-based Vedanta Plc, the holding company of Sterlite Industries, is exploring possibilities to bid along with other investors for National Aluminium Company Ltd (Nalco) as an when the PSU comes up on the disinvestments block.

The company is also planning invest about US$1,600 million to set up 2.5 lakh tonnes per annum aluminium smelter at Korba and 1.4 Mtpa Korba

"We my go for joint bid along with other potential investors for Nalco. We would invest about $800 million each in the Korba and Orissa Projects as part of our growth strategy for the next 2-3 years," its non-executive Chairman Brian Gilbertson said.

The Orissa project which includes bauxite mining and setting up of a 1.4 mtpa alumina refinery and 85-125 MW captive power plant would be commissioned by March 31, 2007, he said, adding that half of the alumina production in the project would be utilised internally.

The company would add about 2.5 lakh Mta aluminium, smelter to the existing capacity of 1.35 mtpa and a power plant and would also spend USD 350 million for expansion to touch four lakh tonnes zinc ingot capacity.

He The strategy for the next 2-3 years include debottlenecking plants and improving efficiency and expansion across all businesses and driving down the unit costs.

Gilbertson said the IPO proceeds would be used to fund growth, he said, adding that the company would consolidate its ownership in Hindustan Zinc Ltd and Balco. The Indian metals consumption in India was expected to double in four years and Vedanta was in position to reap the opportunity, he said.