Gujarat Mineral Development Corporation (GMDC) and National Aluminium Company (Nalco) have dropped the plan to set up an aluminium smelter plant in Gujarat.
Gujarat Mineral Development Corporation (GMDC) and National Aluminium Company (Nalco) have dropped the plan to set up an aluminium smelter plant in Gujarat. Both the PSUs of the state and central governments had joined hands to set up an aluminium plant at the Gujarat government’s ambitious Rs 15,000-crore aluminium park in Kutch.
As per the annual report of GMDC for 2016-17, the 5 lakh tonne per annum alumina refinery and smelter plant in Kutch is not viable, hence both the companies have decided not to go ahead with the project.
The report said, “Land required for the project has been allocated by the state government and part possession has been taken. Process for obtaining possession of remaining portion of land also is under progress. DPR for 0.5 million TPA plant got prepared by Nalco and is not viable. Hence they (Nalco) have requested GMDC to drop the project and the same is under approval of the government of Gujarat.”
According to sources, about 100 hectares of the required about 300 hectares of land was already acquired for the purpose. Nalco had also made upfront payment of Rs 151 crore for setting up the alumina refinery and smelter plant.
In its annual report, GMDC stated, “Accordingly based on facts and circumstances on the transition date the same was disclosed as non-current non-financial liability. However, subsequently based on detailed project report, both the companies mutually decided not to proceed with the project. The company has initiated the process for repayment of the amount to Nalco without interest subject to approval of Government of Gujarat. Accordingly the amount has been classified as an other current financial liability.”
GMDC had 26% equity in this joint venture and would supply bauxite for the project from its group of mines in Kutch. Earlier, it was estimated that investment for the first phase of the project would be around Rs 5,400 crore and the total investment for the project including the aluminium smelter would be around Rs 10,000-12,000 crore.
GMDC’s annual general meeting took place on September 29.