The Odisha High Court on Tuesday directed National Aluminium Company NSE 0.19 % (Nalco) to allow resources conglomerate VedantaNSE 0.94 % to bid in the former’s tender for the sale of surplus alumina, an issue that has been at the heart of a legal tussle between the two aluminium producers.
In a writ petition filed in the Odisha High Court earlier this month, Vedanta sought judicial intervention to be eligible to bid for purchasing alumina from the state-run Nalco.
Vedanta said it was forced to approach the court after it was denied the chance to participate in the tender floated by Nalco for the sale of surplus alumina. Nalco sells around 1.2 million tonnes of alumina every year.
Nalco rejected Vedanta’s bid because it cannot sell alumina to overseas buyers. However, Vedanta has argued that the SEZ status of its smelter at Jharsuguda makes it eligible to participate in the Nalco tender.
“If the contention which has been raised by the petitioners is not accepted, they have to import the raw material…, and in that process spend huge amount of ship fare which will add costs to the company in question…. Whereas if it is allowed to purchase from Nalco, the Indian raw material can be used within India and will serve the purpose of the new policy of the central government, i.e. ‘Make in India’,” the court ruling said.
Commenting on Tuesday’s court order, a Vedanta official said: “We welcome the decision of the Odisha High Court. It is a good move and will boost economic activity and value addition in the state.”
