New Delhi: National Aluminum Co Ltd (Nalco) has moved the Supreme Court challenging an Odisha High Court ruling that had favoured Vedanta Jharsuguda unit. The high court had allowed Vedanta Jharsuguda to participate in a tender that Nalco floated for the sale of surplus alumina.
Nalco, in its special leave petition, said that according to policy, the tender for export of alumina was issued only to overseas customers and, therefore, Vedanta could not be included in the process.
It also said Vedanta’s plea had been rejected as the company was established under the Special Economic Zone (SEZ) statute.
Further, Nalco clarified that Vedanta could participate in the tender, if interested, through its sister concern based in London.
Vedanta Jharsuguda had moved the Odisha High Court, aggrieved by Nalco’s decision to not include it in the tendering process for sale of alumina.
The Odisha High Court in an order delivered March 26 said: “Because on one hand, it (Nalco) refuses the petitioner (Vedanta) to participate in the tender, on the other hand, the opposite party has allowed the petitioner to apply through its sister concern based in London and spend huge Forex to transport to London and call it back for its use at SEZ, does not find favour with the commercial sense.” Vedanta challenged the corporate conditions contained in the tender of spot sale of 30,000 mt of Metallurgical Grade Calcined Alumina floated by Nalco.
Vedanta said the decision of Nalco adversely affected the public interest of fetching maximum revenue by sale of a alumina produced from bauxite (which is readily available to the opposite party through mining on account of it being a public sector undertaking).
Vedanta claimed it was the largest manufacturer of aluminium and was engaged in manufacturing and selling aluminium products.
The company is a leading producer of low-cost metallurgical grade alumina in the world and the commodity produced is used to meet its requirements to produce primary aluminium at its smelter.
The company has 1.6 million tonnes per annum (MTPA) aluminium smelter plant which includes a SEZ unit having an Aluminum Smelter Plant with a capacity of 1.25 MTPA at Bhurkamunda in Jharsuguda. The surplus alumina is sold to third parties in the export market.
Nalco told the apex court that it had decided to sell alumina overseas, after considering various circumstances, in 2005.
—post news network
