Odisha to vet progress of 10 MoU signed projects

Projects of Vedanta, Aditya Alumina to go under scanner

The state government will soon review the progress of 10 MoU (memorandum of understanding) signed projects in sectors like aluminium, cement, auto ancillaries and titanium.

The projects of Vedanta Aluminium Ltd (VAL), Aditya Alumina Ltd, RSB Metaltech Ltd, ASO Cement, Ultra Tech Cement Ltd, OCL India Ltd, Shiva Cement, RSB Transmission Pvt Ltd, Amtek Metal & Mining Ltd and Titanium Products Pvt Ltd are set to go under scrutiny. The physical and financial progress as well as MoU validity of these projects will be appraised by chief secretary, B K Patnaik.

Accordingly, the industries department has urged Industrial Promotion & Investment Corporation of Odisha Ltd (Ipicol) to furnish the present status of these projects.

VAL had entered into MoU with the state government in June, 2003, with the pact expiring in April, 2009. It has a one million tonne per annum (mtpa) alumina refinery at Lanjigarh which has been shut since December 5 last year due to bauxite unavailability. It is also running 0.5 mtpa aluminium smelter and 1215 Mw captive power plant (CPP) at Jharsuguda.

The MoU of Aditya Aluminium Ltd, signed in April, 2005, has also expired since April 2012. The company had proposed one mtpa alumina refinery at Rayagada and 0.26 mtpa smelting facility at Jharsuguda, envisaging an investment of Rs 10,725 crore.

Among the cement projects, only OCL India has started production from its 3.5 mtpa unit at Sundergarh. The pacts of ASO Cement and Ultra Tech Cement are awaiting renewal.

In the auto ancillaries space too, the MoUs of the two proponents — RSB Transmission and Amtek Metal & Mining Ltd have lapsed. Both these projects had envisaged a combined investment of Rs 16,185 crore.

Similarly, the MoU validity of a titanium complex proposed at Chhatrapur in Ganjam district at a cost of Rs 1,200 crore, is yet to be extended.