Chhattisgarh pact with Balco for smelter

Raipur, Aug 19: The Chhattisgarh government has signed a memorandum of understanding with Bharat Aluminium Co Ltd (Balco) to set up a 6.5 lakh tonne per annum aluminium smelter at Korba at a cost of Rs 8,100 crore.

The agreement signifies the intent of Chhattisgarh government for rapid industrialisation and prosperity of the state and its population. The government has sought to extend comprehensive assistance to the new smelter project through active participation.

Chief Minister Raman Singh, Lok Sabha member Ramesh Bais, state health minister Amar Agrawal, the minister for forests, revenue, tourism and youth welfare, Brij Mohan Agrawal, minister for Raipur Ajay Chandrakar, industries & PWD minister Rajesh Munot, Raipur Mayor Sunil Soni, chief secretary Shiv Raj Singh, additional chief secretary, P Joy Oomen and principal secretary (energy) Vivek Dhandh were present.

Vedanta Group Chairman, Anil Agarwal, Balco's CEO and fulltime director Pramod Suri and other Balco officials represented Balco.

The chief minister said: "It is indeed an important occasion for the state that yet another landmark was put on its soil. Chhattisgarh is not only the energy capital of India but it will also become the aluminium capital."

Agarwal said, "The new smelter with the latest technology will add dynamism to the economy of the entire state. We aim to become the lowest-cost producer of aluminium in the world. I am thankful to the state government for supporting and encouraging our vision and projects."

The chief minister said alumina would be procured from Jharkhand and Orissa as there is shortage of bauxite in Chhattisgarh.

"We have requested the Vedanta group to build an aluminium park in Korba and promised to give total raw material and cheap electricity. It will be completed within five months," he said.

The Chief Minister urged Agarwal to open a hospital and engineering college at Korba, and to develop the Kawardha region from where bauxite is being excavated and where one of the world's most backward tribes lives.

Vedanta's Agarwal said Balco had a turnover of only Rs 92 crore when he took over the company from the government during a disinvestment drive.

"Then, with 6,000 employees on its rolls, it was suffering a loss of Rs. 43 crore. Its production capacity was 1 lakh tonnes, against which it produced 89,000 tonne of aluminium," Agarwal noted.

Since Balco's acquisition by Sterlite, the mining operations have been revamped, output maximized and outside purchase of bauxite stopped. Alumina production has increased to...