Supreme Court directs Nalco to supply 30,000 tonnes of alumina to Vedanta's Visakhapatnam unit

On Wednesday, August 19, the Supreme Court ordered National Aluminium Company (NALCO) to ensure delivery of 30,000 tonnes of metallurgical-grade calcined alumina to Vedanta at Visakhapatnam on Free on Board (FOB) basis. The same will be for use in Vedanta’s SEZ unit at Jharsuguda in Orissa, mandated the Supreme Court.

Vedanta Resources had filed a contempt petition to the Supreme Court against Nalco, alleging “willful disobedience” of January order that allowed the UK-based arm to participate in the state-run aluminium producer’s tender for the sale of surplus 30,000 tonnes of metallurgical-grade calcined alumina.

Vedanta had emerged as a successful bidder for Nalco’s alumina tenders meant for exports. But the latter refused to allow the UK firm to take the consignment to its SEZ unit and insisted on terminating the transaction at Visakhapatnam port.

On Wednesday, a bench led by Chief Justice SA Bobde said both Nalco and Vedanta had agreed to abide by its January order. “Nalco has no difficulty in delivering the consignment at Visakhapatnam port on FOB basis, though the same is meant to be used by Vedanta SEZ unit at Jharsuguda,” the order stated, while noting the Vedanta’s statement that it will accept the goods at Visakhapatnam port.

However, senior counsel Mukul Rohtagi, who appeared for Vedanta, wanted the Supreme Court to keep the contempt petition pending, stating that he had serious doubt if Nalco was abiding by the apex court order.

He argued that Nalco made repeated attempts to sidestep the SC order, firstly by refusing to raise invoice in Vedanta’s SEZ office. “Nalco officials are purposely and wilfully trying to circumvent the SC’s directions,” stated Rohtagi.

Nalco executive director R N Mohapatra was also present at the Supreme Court virtual hearing as he was issued a notice in early August.