20 OCTOBER 2014AlCircle.com
Lack of clear pricing policy deterring investors from investing in Angul Aluminium Park
Edited by : AL CIRCLE
2 min read
There is uncertainty revolving around investors willing to contribute towards Angul Aluminium Park (AAP) due to the lack of a clear pricing policy.
This park is meant to be the first of its kind venture in the subcontinent where there will be infrastructure support and facilities to directly receive molten as well as conventional solid forms of aluminium from the adjoining Nalco smelter and used for downstream ventures.
In a letter to Nalco’s CMD Ansuman Das, the CMD of state-owned Idco, Vishal Dev states that the investors are enquiring about the terms regarding pricing methodology and metal supply writing, "it is hereby again requested to formulate a standard hot metal supply agreement and finalise the pricing methodology at the earliest”.
Earlier there had been a commitment issued by Nalco to the state government for the supply of 50,000 tonne of molten metal for 20 years to Angul Aluminium annually. A committee consisting of officials form IDCO, IPICOL and Nalco would decide the further distribution of the hot metal to unit promoters.
However, here has been no clear policy for the molten metal pricing from the central-sector aluminium major yet as a result of which, no investor is ready to invest in the park, said a senior IDCO official.
This park is meant to be the first of its kind venture in the subcontinent where there will be infrastructure support and facilities to directly receive molten as well as conventional solid forms of aluminium from the adjoining Nalco smelter and used for downstream ventures.
In a letter to Nalco’s CMD Ansuman Das, the CMD of state-owned Idco, Vishal Dev states that the investors are enquiring about the terms regarding pricing methodology and metal supply writing, "it is hereby again requested to formulate a standard hot metal supply agreement and finalise the pricing methodology at the earliest”.
Earlier there had been a commitment issued by Nalco to the state government for the supply of 50,000 tonne of molten metal for 20 years to Angul Aluminium annually. A committee consisting of officials form IDCO, IPICOL and Nalco would decide the further distribution of the hot metal to unit promoters.
However, here has been no clear policy for the molten metal pricing from the central-sector aluminium major yet as a result of which, no investor is ready to invest in the park, said a senior IDCO official.
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