Once equity investment in its power business starts, Nalco will hive off the business into a separate entity called Nalco Power or Nalco Energy which will produce 2000MW by 2016.

Its existing power plants will not be used in the new company but will remain for Nalco's captive smelter use.

The company may even list the SPV once it has few projects under its belt.

Nalco has agreed with Nuclear Power Corporation to set up a power plant in Gujarat. The 2x700Mw plant will be built at a cost of $2.8bn which Nalco has a 49% stake in.

Finance director Mr B Bagra said, “According to the corporate plan we have made, we should by 2016 be operating at least 1000MW of independent power, not linked to our aluminium business.

"That will happen with the power plant in Gujarat, so we feel that we should reach more than 2000MW by 2016.”