STOCK MARKET BSE NSE

Govt efforts to settle RAKIA arbitration fall flat

The case came up for hearing in the last week of November and officials of the mining department went to London and held discussions  with RAKIA for settling the issue amicably.

Published: 04th December 2021 08:28 AM  |   Last Updated: 04th December 2021 08:28 AM   |  A+A-

Express News Service

VIJAYAWADA: Efforts of the State government to settle the international arbitration raised by Ras-Al-Khaimah Investment Authority (RAKIA) over the cancellation of the Bauxite Supply Agreement (BSA) entered between the AP Mineral Development Corporation (APMDC) and ANRAK Aluminium Limited outside the court did not yield any result. It is learnt that the representatives of RAKIA turned down the proposal of the AP Mining department officials.

Sources said as against $245 million demanded by RAKIA, the state government offered a maximum of $24 million. The case came up for hearing in the last week of November and officials of the mining department went to London and held discussions  with RAKIA for settling the issue amicably.

Informing that further hearing of the arbitration was adjourned, an official told TNIE that their efforts to settle the issue out of the court had failed and they would have to wait for the court orders. RAKIA and Penna Group jointly set up an alumina plant in Visakhapatnam Agency as per the agreement exchanged with the APMDC for mining bauxite from the agency area. However, the State government imposed a ban on bauxite mining in the State and cancelled the agreement and RAKIA went for international arbitration seeking compensation. 

According to the officials, RAKIA has only 13% stake in the alumina refinery near Makavarapalem in Vizag agency while the Penna Group is the major partner with 87 per cent stake in the alumina refinery.
The officials were of the view that in case of RAKIA agreeing to their proposal to settle the issue outside the court, the Government would pay the amount. Later, Penna Group can take over the refinery unit by paying back the amount to the State government, the sources added.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp