Nalco declines to supply alumina to Vedanta

Bhubaneswar: Citing internal problems state-run National Aluminium Company (Nalco) on Friday showed its inability to supply alumina to Vedanta Aluminium Ltd's (VAL) aluminium smelter at Jharsuguda.

"Due to some technical problems in the company we are unable to give bauxite or alumina to any other company in the country," said Ansuman Das, CMD of the aluminium company.

While the company is in the process of setting up a refinery of 1 million tonne capacity at Damanjodi in Odisha, another 1 million tonne capacity refinery has been planned in Gujarat. "Once both these refineries are commissioned, the capacity of the company will go up to 4.2 million tonne from current 2.2 million tonne capacity," Das said.

Earlier of this month, VAL's MD S K Roongta had written a letter to state's chief secretary J K Mohapatra requesting him to persuade Nalco to sell its surplus and exportable alumina to Vedanta.

“We earnestly request you to impress upon Nalco to start selling/allow participation of smelter companies located in Odisha, which would be treated as deemed exports for Nalco in its alumina tenders, so that the same can be utilised for increasing revenues for the exchequer, ensuring value addition and also generation of employment opportunities,” Roongta had said in his letter.

Even he mentioned that the deal would help Nalco earn extra revenues to the tune of Rs 200 crore annually over and above its export realisation.

VAL's one mtpa refinery at Lanjigarh is currently running at 40% capacity and needs 3 lakh tonnes of bauxite every month for full operation.