Anrak Aluminium gearing to commission alumina refinery in India

The joint venture of Ras-Al Khaimah Investment Authority (RAKIA) and Penna Group of Companies, Anrak Aluminium Limited (AAL) following several implicates is hard-pressed in making efforts to commission its 1.5 million tonne alumina refinery set up at Rachapalli, which is around 80 km away from Visakhapatnam, Andhra Pradesh.

The company, went into the turbulent situation with a loan of INR 3,461 crore it borrowed from a consortium of banks led by SBI, has eventually manifested to commission the refinery set up at Rachapalli in Makavarapalem Mandal, about 80 km from Visakhapatnam in 2013 with an estimated Capex of around INR 6,000 crore.

As per our sources, “The management has already imported 'adequate' quantity of bauxite ore to operate the refinery, which was lying idle following cancellation of Government order (GO)by the TDP Government in 2016 to supply 224 million tonnes of bauxite ore from Gudem and Chintapalle blocks in the scheduled areas through AP Mining Development Corporation (APMDC).”

“The company has also made the arrangements for commissioning its captive power generation station, which can produce 224 MW. The State Government also refused to allow mining bauxite in the scheduled areas due to objections from the many.”

However, as part of efforts towards commissioning the alumina refinery, the company has also gone on a recruitment drive for multiple technical and non-technical openings.

Following, the cancellation of MoU by the state govt. with Anrak, which was duly signed in 2008, the project promoter had also filed arbitration for compensation of $44.71 million due to the failure by the authorities had failed to meet their obligation to supply bauxite to produce aluminium through APMDC.

Anrak Aluminium had accomplished the pre-construction undertakings and mechanical works including pre-commissioning trials by June 2014. However, for the requirement of raw material, it could not be empowered to date notwithstanding efforts to source it from bauxite-rich Kakiriguma and Bahumali in the undivided Koraput district of the neighbouring state, Odisha.

D Sathibabu, the National Level trade union in charge of Narsipatnam division, said, “Anrak management has stepped up efforts to start the operations of the refinery. We don't have any objection as long as they generate jobs and do not cause any harm to the environment."