You are here: Home » Companies » News
Business Standard

GMDC, NALCO drop Rs 5,400 cr alumina refinery project in Kutch

The project is being dropped after a detailed project report said it is not viable

Vinay Umarji  |  Ahmedabad 

Nalco sets Rs 1,021 crore Capex target for FY17

After years of negotiations and feasibility studies, state-owned Mineral Development Corporation Ltd (GMDC) and central public sector undertaking (PSU) National Aluminium Company Limited (NALCO) have decided to drop the Rs 5,400 crore alumina refinery.

In its 54th annual report for the year 2016-17, stated that citing nonviability of the project, has asked the state to drop the project. A joint venture between and with the former having a 26 per cent stake, the alumina refinery was supposed to come up as part of the Rs 15,000 crore aluminium park in being set up by the state government.

According to GMDC, the detailed project report (DPR) prepared by found the 500,000 tonnes per annum (tpa) plant "unviable".

"Land required for the project has been allocated by Government and part possession has been taken. Process for obtaining possession of a remaining portion of land also is in progress. for 500,000 tonnes per annum (tpa) plant got prepared by and is not viable. Hence they have requested to drop the project and the same is under the approval of Govt. of Gujarat," stated in its annual report.

"Based on the DPR, both the mutually decided not to proceed with the project," GMDC's annual report further read.

As a result, an "up front payment" of Rs 151 crore made by for setting up the refinery and smelter plant will be refunded by GMDC, the company stated in its annual report. "The company has initiated the process for repayment of the amount to without interest subject to the approval of Government of Gujarat," it stated.

With being mooted as a potential JV partner in 2011, GMDC's project had envisaged a 500,000 tonnes of smelter as well as one million tonnes of refined alumina per annum capacity. Around 100 hectares of land, of the total 300 hectares had been acquired for the project.

First Published: Wed, October 04 2017. 02:24 IST
RECOMMENDED FOR YOU