Nalco yet to decide on metal pricing for downstream units

This is despite repeated reminders from Idco, the co-developer of the park

Despite  Idco’s (Odisha Industrial Infrastructure Development Corporation) repeated  missives to the National Aluminium Company (Nalco) to finalise pricing methodology for its metal supply commitment to the industrial units at the proposed aluminium  park at Angul, the  central PSU is yet to take a call on the pricing.

“Pricing is still under consideration. We are not in the immediate business of selling hot metal as we sell  finished metals. As a goodwill gesture for the MSMEs and state government we have agreed to give 50000 tonne of hot metal”, said S S Mohapatra, Director-Production, Nalco at the sidelines of an event.

After the approval of our board, we will move Union ministry of mines for final approval and then we will come with the pricing, he added.

In a recent reminder, Idco has asked Nalco to submit the pricing details as the aluminium major has been dragging its feet over metal supply commitment to industrial units which will come up in the proposed park at Angul.

Nalco, in 2012,  had refused to enter into a long-term metal supply pact with Midal Cable, a Bahrain-based aluminium equipment maker, which intended to set up a unit at Angul, citing that it cannot enter into exclusive deal with a particular company at the park. Later, under pressure from Idco, it announced its supply commitment in June this year.

"Though Nalco is operating at reduced capacities, due to the difficulties in getting adequate supply of coal for its captive power plant, the company has agreed to supply 50,000 tonne per annum (tpa) of molten metal initially to Angul Aluminium Park for promoting downstream industries", it had said in a release.

The industrial complex at Angul is to be developed on 204 acres of land at a cost of around Rs 125 crore. So far, Idco has aggregated more than 120 acres and is implementing the external connectivity infrastructure to operationalise the park at the earlier.