The Hindu Business Line : Reopening of Hindalco unit unlikely

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Kochi, March 6 The reopening of the Hindalco's smelter unit at nearby Eloor is unlikely and instead the management is planning to put forward a proposal to the Kerala Government for developing/diversifying the existing unit to provide employment to the retrenched workers.

The company management as agreed upon during a meeting called by the Industries Minister recently is to submit its report before March 31, reliable sources told Business Line.

HIGH POWER COST

The company, they said, is unlikely to go ahead with reopening of the smelter unit because of the high power cost, which has made its operation unviable.

The management had shut down the unit from August 1, 2003, and asked its 326 employees to stay at home, following the expiry of concession on power charges extended to the company by the State Government in early 2003.

However, the extrusion plant employing 100 people here is being operated now by using billets brought from Hindalco's smelter unit in Hirakud, Orissa.

Though it involves an additional cost on transportation, the current operation is found to be viable, as the power cost in Hirakud is much cheaper. Operating the smelter unit here through high cost power would be uneconomical, they said.

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