The Hindu Business Line : Ras Al Khaimah, AP sign pact for bauxite mining

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Hyderabad Feb. 15 The State Government and representatives from Ras Al Khaimah on Wednesday signed up for assured supply of bauxite to support the proposed alumina plant of 2.5 million tonnes capacity and an aluminium smelter plant with an investment of about Rs 9,000 crore.

According to a statement from the Chief Minister's Office, the MoU was signed by Ms Y. Srilakshmi, State Secretary for Industries and Commerce, and Sheikh Bin Saqr Al Qasimi, the Crown prince and deputy ruler of Ras Al Khaimah in the presence of the Chief Minister, Dr Y.S. Rajasekhara Reddy.

According to terms of the understanding, the State-owned Andhra Pradesh Mineral Development Corporation is expected to mine the bauxite reserves and meet the requirement for the proposed plant. This arrangement is being agreed upon as the mining tracts come under reserve areas and mining permissions are granted only to State-owned enterprises.

As per deal terms, APMDC is expected to supply 224 million tonnes of bauxite under the Jerella group of villages of Chintapalli mandal, Visakhapatnam district, to meet the requirement for the proposed alumina plant and smelter.

Ras Al Khaimah has hinted that the proposed project could potentially be completed within 36 months after all necessary clearances are received.

As per the arrangement, the aluminium company shall allocate 0.5 per cent of the turnover for tribal development and APMDC in turn would allocate about 20 per cent of its profit in the bauxite mining project for tribal development. The State is likely to get a royalty of Rs 40 crore per annum.

As per estimates, about 10,000 people may get direct and indirect employment through the project besides State getting about Rs 120 crore through various tax imposts through the project.

The CMO statement said the Department of Economic Affairs of the Union Government has accorded clearance for the project from a bilateral point of view.

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