Financial Daily from THE HINDU group of publications
Friday, May 13, 2005
Ashapura-Sichuan wins bid to set up Gujarat alumina plant
Mumbai , May 12
THE Ashapura Minechem-Sichuan Aostar Aluminium Corporation combine has won the bid to set up a one million tonne alumina plant at a cost of Rs 2,500 crore in Gujarat. Man Industries Ltd was the other bidder for the project.
Ashapura Minechem announced that it has received the Gujarat Government's approval to set up the plant in Kutch district.
Ashapura and Sichuan Aostar had come together to set up a 50:50 joint venture to bid for this project.
Sichuan Aostar is a subsidiary of Chinese Sichuan Electric Power Corp.
The project is expected to be executed in two phases. The first phase is expected to cost Rs 1,190 crore. The project is slated to be set up in Mandvi, 40 km from Mundra Port in Kutch district. It has the provision for a captive jetty.
Kutch has 40 million tonnes of bauxite reserves, according to Mr Chetan Shah, Managing Director, Ashapura Minechem.
The investment for this project will be a combination of equity and debt.
Ashapura Minechem and the Gujarat Government will take 50 per cent of the equity and Sichuan will invest the rest.
The debt will be a combination of project finance and suppliers' credit from India and China.
The Gujarat Government is likely to take a stake of 5-11 per cent in the joint venture, with Ashapura holding 39-45 per cent and Sichuan holding the rest.
Guiyang Aluminium Magnesium Design and Research Institute (GAMI) is the technology partner.
This project, according to Mr Chetan Shah, will provide direct employment to 700 persons.
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