The alumina refinery project at Bhuj in Gujarat, implemented by Alumina Refinery Limited (ARL), is facing delay due to problems in acquisition of land. Though other details relating to the same are not available, it is understood that the delay has not resulted in any cost overrun. However, the envisaged commissioning of the project by the last quarter of the current fiscal may not happen as the company has been able to spend hardly 10% of the cost till the information last available, that is, 31st May 2014. However, one of the positive developments about the project is the fact that the company has received in-principle approval from its lenders for the proposed debt.
ARL has signed a MoU with Gujarat Mining Development Corporation Limited (GMDC) under which GMDC would be investing 26% equity capital in the project and also would be supplying Bauxite from its Kutch Bauxite mines to ARL for manufacturing of Specialty Alumina which is mainly used in refractory, abrasives, ceramic, paper industry, water treatment plants and as water purifying agents, detergents and glass industry. The project is estimated to cost Rs. 120 crore which will be funded with debt to equity of 2:1.
