Utkal Hunts For Team Of International Legal Eagles

The board of directors of Utkal Alumina Ltd, a company jointly promoted by Indian Aluminium Co Ltd (Indal), Norsk Hydro and Tata Industries, has decided to appoint an international law firm and an Indian legal unit as its legal advisors.

The company has already short-listed three investment banks for the post of its financial advisor from the nine investment banks seeking the position.

The issue is likely to be taken up at the Utkal Alumina board meeting which is scheduled to be held next week in Mumbai.

After the appointment of the financial and legal advisors, decisions on various projects will be expedited.

 

The board meet will also consider financial arrangements to be made for the projects, for which a committee has already been set up.

Apart from the joint venture partners, funds for the projects will be raised from other sources as well. Meanwhile, the Canadian aluminium major Alcan has been formally inducted as an equity partner in the project to be put up in Orissa. Utkal Alumina has plans to set up an export oriented one million tonne (mt) alumina plant in the Koraput district of Orissa.

The offtake of alumina for the promoters from the project will be in proportion to their equity holding. Following the induction of Alcan as a partner in the project, the equity distribution has undergone a change. Indal, Alcan and Tata Industries will hold 20 per cent each in the venture, while Norsk Hydro will have a 40 per cent stake.

Land acquisition for the first phase of the Koraput project is almost complete. The mining licence has been cleared by the central government.

Permission for allocation of land at Vizag port for captive loading and unloading is still pending.