By Bizodisha Bureau, Bhubaneswar, August 20, 2020:
The Supreme Court finally asked NALCO to ensure delivery of 30,000 MT of metallurgical-grade alumina to Vedanta firm at Visakhapatnam on FOB basis, though the same will be for use in Vedanta’s SEZ unit at Jharsuguda, Orissa.

VAL has been deprived of the alumina for more than a decade virtually putting its investment of more than Rs 50,000 crore in Odisha in a tight spot. For instance, way back on the 6th and the 20th of August, 2013 NALCO had issued a tender for shipment of 30,000 tonne of alumina each which was awarded at $326 and $327 respectively. Vedanta had participated in this and offered $330. But the bid was unsolicited on the grounds that NALCO is committed to exporting the same.

This year also VRL had emerged successful bidder for Nalco’s alumina tenders meant for exports, but Nalco once again had refused to allow the Anil Agarwal owned firm to take the consignment to its SEZ unit and had insisted on terminating the transaction at Visakhapatnam Port.

Besides, the producer had also asked VRL to obtain Let Export Order (LET), a mandatory requirement for completion of the transaction, from the Customs authorities at Visakhapatnam Port contrary to the Apex Court’s directions that asked the VRL to get documentation from SEZ authorities.

Incidentally, Vedanta had filed the contempt petition alleging “wilful disobedience” of its January order. A Bench led by Chief Justice SA Bobde, while disposing of the Vedanta’s contempt petition on Wednesday, said both Nalco and VRL had agreed to abide by its January order.

“Nalco has no difficulty in delivering the consignment at Visakhapatnam port on FOB basis, though th

that it will accept the goods at Visakhapatnam port.

e same is meant to be used by Vedanta SEZ unit at Jharsuguda,” the order stated, while noting the Vedanta’s statement

The top court had in January allowed VRL to bid for Nalco’s alumina tenders meant for exports but said the delivery of consignment would take place at Visakhapatnam on FOB basis. Nalco had then opposed the participation of Vedanta’s Jharsuguda unit, saying the tender for alumina exports can be issued only to overseas customers.