Nalco appeals SC again over Odisha HC¡¯s order allowing Vedanta to participate in alumina sale tender

National Aluminium Company (Nalco), on Tuesday, December 3, once again appealed the Supreme Court to challenge the Odisha High Court’s March order that allowed Vedanta’s Jharsugda unit to participate in the tender for the sale of surplus 30,000 tonnes of metallurgical grade calcined alumina.

In April this year, Nalco had first approached the Supreme Court over this issue, citing that the tender for alumina exports was issued only to overseas customers and, therefore, Vedanta’s Jharsugda unit was not entitled to participate in the tender.

Later on, the state-owned Navratna company clarified that Vedanta could participate in the tender through its sister concern based in London.

Nalco also exports its surplus alumina of over 1.2 million tonnes after meeting its in-house need at Angul Aluminium Park.

Senior counsel Ranjit Kumar, appearing for Nalco, alleged that “Vedanta wants to finish Nalco. They have a predatory approach. Vedanta doesn’t want calcina to be exported by the PSU as it buys it from us and also exports it… Vedanta is the highest in production and exports and almost commands 48% market share. They are also given many tax and duty exemptions for conducting operations in SEZ.”

Senior counsel Mukul Rohatgi, appearing for Vedanta, however, stated that the bidding conditions mentioned by Nalco were arbitrary and discriminatory.

Vedanta being a SEZ unit and global diversified metals and mining company with headquarters in London can be considered a foreign buyer and treated at par with the overseas entities, according to Rohatgi. 

As per the provisions of SEZ Act 2005, the SEZs are categorised as a territory outside of India and supplies from Domestic Tariff Area to SEZ are considered as export.

The Odisha High Court, while allowing Vedanta, had also noted the lack of economic sense requiring the Anil Agarwal company to apply as a foreign firm. “Because, on one hand, it (Nalco) refuses Vedanta to participate in the tender and on the other hand Nalco has allowed it to apply through a sister concern based in London and spend huge foreign exchange to transport it to London and back to its plant in the SEZ, it doesn’t find any favour with commercial sense.”

The SC will continue hearing on Wednesday.

Copyright and Exemption Declaration :¢ÙAll articles, pictures and videos that are marked with "China Aluminum Network" on this website are copyright and belong to China Aluminium Network (www.alu.com.cn). When transshipment, any media, website or individual must list the source from "China Aluminium Network (www.alu.com.cn)". We seek legal actions against anyone that disobey this. ¢ÚArticles that marked as copy from others are for transferring more information to readers, do not represent or endorse their opinions or accuracy and reliability. When other media, website or individuals copy from our website, must keep the source. Anyone that changes the articles' sources will hold the responsibilities for copyright and law problems. We also seek legal actions against anyone that disobey this. ¢ÛIf any articles copied by our website concern the copyright and other problems, please contact us within one week.