AP explores options to end stalemate over UAE alumina refinery project

By Santosh Patnaik Visakhapatnam:  After finding itself on a sticky wicket, the Andhra Pradesh Government is keen to find out a viable solution to operationalise an alumina project near here, seven years after it was completed with an investment of about Rs.6,000 crore.
The trigger for the exercise was the international arbitration raised by Ras-al-Khaimah Investment Authority (RAKIA) after the State Government led by Chief Minister Y.S. Jagan Mohan Reddy cancelled the bauxite supply agreement made by AP Mineral Development Corporation (APMDC). The erstwhile Telugu Desam Party Government of Chief Minister N. Chandrababu Naidu had also announced not to allow bauxite mining in the forests of Eastern Ghats following protests by tribal and anti-mining activists.
Ras-al-Khaima is among the seven emirates that form the UAE.
RAKIA along with its Indian partner Penna Group had signed agreement with APMDC for massive investment in an alumina refinery, smelter and captive power plant at Rachapalle in Makavarapalem block of Visakhapatnam district, about 80 km from here. A special purpose vehicle Anrak Aluminum Limited was formed to implement the project on a fast-track mode.
The project proponent which acquired land completed work on 1.5 million capacity refinery in 2013. It could not operate it for want of bauxite ore, the main raw material, which was promised from Gudem and Chintapalle blocks in the district. The mining areas are considered hotbed for outlawed left-wing extremists.