Anrak Aluminium Limited (AAL), a joint venture of Penna Group and Ras Al Khaimah is optimistic about starting operations of its 1.5 million tonne alumina refinery in Visakhapatnam in the next few months after Hyderabad High Court passing a judgement in favour of it. The refinery is lying no-operational even after five years of its construction.
The High Court has recently asked the State Bank of India (SBI) to withdraw its petition against the one-time settlement proposed by the Anrak Aluminium. The company has spent INR 6,000 crore on building the refinery.
The AAL has agreed for one-time settlement of INR 1,275 crore to the SBI-led consortium of lenders against a loan of INR3,461 crore. In their appeal they said that the refinery was built on the promise of bauxite, agreed upon by the undivided Andhra Pradesh government in 2017 and they attributed the failure to launch the refinery to the cancellation of bauxite supply agreement.
The refinery would need 4.5 million tonne of bauxite ore per annum to run at its full capacity. Andhra Pradesh Mineral Development Corporation (APMDC) promised to supply bauxite from different blocks in Visakhapatnam but the agreement was scrapped later by the state government on various discrepancies.
The SBI then had filed a plea against the AAL for default in the loan repayment.
“Now, we will source a part of our requirement of bauxite ore during auctions by Gujarat Mineral Development Corporation and Odisha Mining Corporation. Odisha has bauxite mines at Kakirigumma and Kodangimali in the undivided Koraput district, which is close to Visakhapatnam,” AAL vice-president (works) L.S. Rao told The Hindu.
AAL also intends to import bauxite from Australia, Indonesia and Guinea. Once operational, the refinery is expected to create 20,000 to 25,000 jobs, Mr Rao added.
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