Jindals, AP govt ink pact for aluminium plants

The OP Jindal Group today signed a memorandum of understanding with the Andhra Pradesh government for aluminium refinery and aluminium smelter plants.

The plants, to be set up near Vizag by the Rs 18,000 crore group, will involve an estimated capital outlay of about Rs 9,000 crore.

As per the MoU, the state government and the Jindal South West (JSW) Holding Limited, have mutually agreed to incorporate and promote an aluminium refinery and smelter company to produce about 2.5 lakh tonnes of aluminium per year initially, with a provision for suitable expansion.

State-owned Andhra Pradesh Mining Development Corporation (APMDC), which will have an equity holding in the project, would undertake mining and supply bauxite ore.

APMDC would supply bauxite from Araku and Sapparla areas consisting of approximately 2,446 hectares and containing approximately 240 million tonnes of bauxite for the project.

The agreement was signed by Krupanandam, secretary, Industries department, and Raman Madhok, joint managing director and CEO of JSW Steel Limited in the presence of chief minister Y S Rajasekhara Reddy and Sajjan Jindal, vice-president and managing director of JSW Steel Limited.

"The aluminium company will offer equity to APMDC in the company at the percentage as may be decided by the committee appointed by the government," a government press release said.

There will be a detailed collaboration agreement between APMDC and the aluminium company from the date of grant of mining leases by the Government of India.

According to a JSW press release, the time span between the project plan and production take-off is expected to be about three years.

The project is expected to employ about 10,000 people.