Bhubaneswar, Jan 31:

National Aluminium Company Limited (Nalco) and Neelachal Ispat Nigam Limited (NINL) have signed a memorandum of understanding (MoU) to set up a joint venture company for producing coal tar pitch in Odisha.

“The agreement is part of the new business plan of Nalco to ensure backward integration and sustain the plans for forward integration,” said Nalco CMD Tapan Kumar Chand in a statement on Tuesday.

The MoU was signed by General Manager (Business Development and R&D) S.K. Satpathy and Joint Managing Director S.B. Jagdale on behalf of Nalco and NINL, respectively.

A coal tar distillation plant is proposed to be set up, under the joint venture (JV), based on the coal tar generated from NINL’s coke oven plant at its 1.1 million tonne per annum integrated iron and steel plant at Kalinganagar in Jajpur district.

NINL will be preparing a techno-economic feasibility report for the JV project. (IANS)