with The Indian Express show that Bagra, got the JV with GMDC approved under which Nalco will buy bauxite for 25 years at a price linked to the mineral’s prevailing rate at the London Metal Exchange. Back home in Orissa, Nalco sources alumina from its captive mines at far cheaper price which accounts for the company’s high valuation. Nalco’s director (project and technicals) NR Mohanty told The Indian
Express he was unaware of any such probe, but said the project would go ahead only after the Detailed Project Report gets ready. “After that we would take a call,” he said.
Nalco’s project in Kutch district is expected to build up a capacity of 1 million tonne per annum of alumina as well as a 0.5 million tonne per annum aluminum smelter.
CVC sources said an inquiry by Nalco’s Chief Vigilance Officer is now underway after two separate complaints reached the CVC over the company management failing to cover its financial risk while signing the MoU with GMDC.
While one complainant’s name is being kept secret under Public Interest Disclosure and Protection of Whistleblower scheme of the Commission, the other complaint was lodged by Nalco Employees Union in Damanjodi and President of Nalco Officers’ Association in Angul.