The Nalco has finalised a price mechanism of aluminium metal for the Angul Aluminium Park. Nalco CMD Dr TK Chand has informed Industries Principal Secretary Sanjeev Chopra in this regard recently.
The State Government was sending missives to the Nalco to finalise the mechanism so that units would come up in the proposed park.
Chand is taking up the matter with all seriousness, for which the price mechanism, necessary for the park, took the final shape, said Nalco sources. The price mechanism is the basic framework for sale of aluminium to the units to come up in the park.
The price mechanism will be valid for five years from the date of commencement of supply of aluminium. Different price mechanisms have been formulated for MSMEs and other units to provide price preference. In the event of any change in tax and duty structures impacting metal pricing, the pricing of aluminium will be reviewed.
The Aluminium Park being developed jointly by the Nalco and State-owned Idco has received several proposals for establishment of downstream units. The Ipicol and the Angul District Industries Centre (DIC) are receiving applications for setting up the downstream units.
An MoU has been signed between the Nalco and the Idco for the Aluminium Park, which s coming up with the approval of the Department of Industrial Policy and Promotion (DIPP) under the Union Ministry of Commerce and Industry.
The hub is being developed by a special purpose vehicle (SPV) called Angul Aluminium Park Private ltd (AAPPl) with shareholding of 50.50% and 49.50% between the Idco and the Nalco, respectively. It would come up over 450 acre of land, out of which 160 acre is taken up for development in the first phase.
The Nalco has agreed to supply 50,000 tonne per annum of molten metal for promoting downstream industries in the aluminium complex.