The refinery is expected to start production from July 2011 and the order for machinery has been already placed. It involves an estimated INR65bn ($1.42bn) of planned capital expenditure, about 30% of which is being put up as equity by the company, while the rest is being raised as debt.

The company has capital expenditure plans of over INR230bn ($5.02bn) for the next three years, including other new plants in Orissa, Madhya Pradesh and Jharkhand.

Hindalco plans to fund 30% of its total capital expenditure through equity infusion and internal accruals.