"Applicants (keen to set up their units in the aluminium park) are requesting for the terms of the metal contract and pricing methodology. It is hereby requested to kindly formulate a standard hot metal supply agreement and finalise the pricing methodology at the earliest," said Vishal Dev, chairman cum managing director (CMD), Idco, in a letter to Nalco.
This is the second reminder from Idco to Nalco over submission of pricing details as the aluminium maker has been dragging its feet over metal supply commitment to industrial units which will come up in the proposed park at Angul. In 2012, Nalco had refused to enter into a long-term metal supply pact with Midal Cable, a Bahrain-based aluminium equipment maker, which intended to set up a unit at Angul, citing that it cannot enter into exclusive deal with a particular company at the park. Later, under pressure from Idco, it announced its supply commitment in June this year.
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"Though Nalco is operating at reduced capacities, due to the difficulties in getting adequate supply of coal for its captive power plant, the company has agreed to supply 50,000 tonne per annum (tpa) of molten metal initially to Angul Aluminium Park for promoting downstream industries", it had said in a release.
The industrial complex at Angul is to be developed on 204 acres of land at a cost of around Rs 125 crore. So far, Idco has aggregated more than 120 acres and is implementing the external connectivity infrastructure to operationalise the park at the earlier.
Till now, the park has attracted investments worth Rs 631 crore. Two industries - Midal Cables and Metal Powder Company Ltd have proposed to set up their units in the park.
Idco has already allotted land to Midal Cables in the proposed park.
The Department of Industrial Policy & Promotion (DIPP), under Union commerce & industry ministry, recently agreed to provide a grant of Rs 43.01 crore to the park under Modified Industrial Infrastructure Upgradation Scheme.