Mahanadi Coalfields (MCL), a subsidiary of Coal India (CIL), has expressed its intention to secure government approval for an investment of Rs 340.72 billion in a comprehensive greenfield aluminum project situated in Odisha. This project encompasses a two-million-tonne alumina refinery, a 0.5-million-tonne aluminum smelter, and a 1,400-megawatt captive power plant. It has been proposed that within the framework of the aluminum complex investment, MCL will acquire a bauxite block at Sijimali or Kutrumali in Odisha, with the objective of extracting six million tonnes of bauxite annually. Initially, the resultant products will consist of primary aluminum ingots, with the introduction of value-added products anticipated at a later stage. As part of the project, MCL aims to invest Rs 102.22 billion as equity, following a debt-equity combination of 70:30. In light of this approach, MCL has sought an exemption from the investment limit stipulated by the Department of Public Enterprises. This department mandates that a Miniratna entity can allocate only 15% of its net worth to a project, subject to a cap of Rs 5 billion. Additionally, there exists an overarching investment cap of 30% of net worth across all projects combined. Given that the net worth, post-dividend, is estimated at Rs 97.16 billion, adhering to the 30 percent limit would allow for a meager Rs 29.14 billion in permissible equity. Crossing this limit necessitates the approval of the Department of Investment and Public Asset Management (DIPAM), which is responsible for overseeing matters related to the capital structure and net worth of central public sector undertakings, according to an official statement. Initially, Coal India had devised plans for a joint venture in collaboration with National Aluminium Corp (NALCO), in which MCL would retain a 74% stake, and NALCO would hold the remainder. However, the concept of the joint venture was abandoned in August 2022. Subsequently, the MCL board made the decision in January of the following year to establish a special purpose vehicle dedicated to the complex project. MCL's newly proposed venture aligns with India's commitment during COP-26 in Glasgow to achieve Net-Zero Carbon Emissions by 2070. This commitment prompted Coal India to shift its focus away from its primary coal mining business, redirecting its efforts toward diversification into non-fossil fuel sectors. The aim is to ensure a sustainable revenue stream through other business avenues. Also read:  Honer Homes unveils Rs 30 bn mega project, Honer Signatis Provident Housing launches Rs 20 bn Sustainable Living Project