
Government of India will form an Inter-Ministerial Group to respond to Ras-Al-Khaimah Investment Authority's arbitration notice seeking compensation on a total investment of US$44.71 million that is being made by it or ensure immediate supply of bauxite to the alumina refinery set up in the southern state of Andhra Pradesh, reported sources aware of the development.
The Ministry of Mines has been appointed as the nodal ministerial body and entrusted with the duty of contesting the arbitration notice, by the Ministry of External Affair vide letter No AC/202/459/2016, dated December 30, 2016. The Secretary of the concerned administrative ministry will be heading the IMG, sources said. 
The planned alumina refinery was a joint venture between RAKIA and the Penna Group who had signed a MoU with the AP Mineral Development Corporation regarding sourcing of bauxite from the Agency areas. The clearances for the same were obtained from the Ministry of Mines, Government of India.
The problem arose when the AP Cabinet took decision to scrap the MoU with Anrak Aluminium Limited (AAL) last year. Objections coming in from the opposition parties, tribal people and anti-mining groups had forced the state government to take such a decision.
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India Ministry of Mines stated in the office memorandum dated January 5, that they had received RAKIA’s arbitration notice under the India-UAE Bilateral Investment Promotion and Protection Agreements (BIPA) dated December 8, 2016.
RAKIA had forwarded the notice to the PMO as well as several ministries, including Mines, External Affairs, Environment, Forests & Climate Change and the AP government, invoking Article 10(5)(b) of India-UAE BIPA and Article 3 of United Nations Commission on International Trade of Law (UNCTRAL) Rules.
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