Gujarat Mineral Development Corporation (GMDC) says it will take till January 20 to select and announce a partner for its Rs 14,000-crore aluminium project in Kutch.
V S Gadhvi, managing director, told Business Standard: “We wanted to announce the partner during the ‘Vibrant Gujarat’ event which begins on January 12. However, we won’t be able to complete the assesment of the Expression of Interests (EoI) by that time. We are studying the EoIs by nine companies and will announce the decision by January 20.”
GMDC has appointed two agencies to study the EOIs, do a technical assessment and financial background checks of the applicant companies.
Added Gadhvi: “Since all the companies are of sound financial health and very strong corporate houses, we might narrow down to three companies and then ask them to furnish some more details, which will help us to select one company to partner with.”
The EoIs came from Hindalco Industries, Gujarat Foils, JSW Aluminium, Nalco, Aluchem (USA), Dubai Aluminium, Jaiprakash Associates, Adani Group and Jindal Steel and Power.
The project is for setting up a million-tonne alumina refinery and a 500,000-tonne aluminium smelter. GMDC will be the bauxite provider for the alumina production from its mines in Kutch. The company has bauxite reserves to last 25-30 years.
Gujarat Foils has tied up with the world’s largest aluminium company, Rusal (Russia)and has bid for the project. According to the company, the total investment needed would be about Rs 14,000 crore. However, B L Bagra, director (finance), Nalco, another suitor, estimates the project would cost Rs 10,000 crore.
The EoI document had no mention of a power plant, which is very important, as aluminium production needs huge quantities of power. Gadhvi said, “The companies, in their EoIs, have mentioned the power plant and they themselves will be setting it up. Also, for the water requirement, the state government is setting up a desalination plant as a long-term measure to support the industries in Kutch.” There is presently a temproary water pipeline arrangement, he said.