Passing judgement in the matter of alumina tenders, the Orissa High Court on Tuesday asked Nalco to allow the Vedanta Limited to participate in the alumina tenders floated by the PSU.
This is latest development in the tussle between the two aluminium giants over the crucial raw material, which also saw Jharsuguda citizens lending their voice and support to the ‘Odisha’s resources for Odisha first’ movement.
Where Vedanta is struggling from the want of alumina, Nalco exports more than a million metric tonnes of alumina every year. Vedanta has repeatedly sought supply of alumina from Nalco, but denied participation in tenders floated by the latter citing grounds.
Prior to seeking legal recourse into the matter, Vedanta had tried participating in the open alumina tenders but to no avail. The company is undergoing immense raw material scarcity despite being in Odisha, home to India’s richest bauxite reserves. Forced to turn to imports, the company loses millions in forex annually.
Alumina supply from Nalco could provide some respite to Vedanta, as the company looks to adding more value in the State through its proposed Aluminium Park at Jharsuguda which can create an ecosystem of ancillary industries near the mother smelter.
Vedanta is the economic backbone of Jharsuguda, which has gained reputation as an industrial town and is one of the biggest contributors to State GDP.
In January, a delegation led by eminent citizens of Jharsuguda reached out to Nalco on behalf of a people’s movement where nearly 12,000 people of Jharsuguda signed a petition requesting Nalco to supply alumina to Vedanta.
The delegation also met Chief Secretary AP Padhi, requesting intervention in the matter. This was followed by another appeal from the delegation when Nalco opened tender for 30,000 metric tonnes of alumina in February, in which Vedanta requested participation.
Upon rejection to participate, Vedanta sought legal intervention by filing a writ petition with Orissa High Court.
On March 26, the High Court found Vedanta eligible for the tenders under all prevailing conditions and directed Nalco to allow Vedanta to participate in the same.