The Hindu    30.08.2012

Water scarcity to delay Anrak refinery

The efforts of Anrak Aluminium Limited (AAL) to commission its Greenfield alumina refinery may not materialise in the near future with severe water shortage being experienced by the Greater Visakhapatnam Municipal Corporation.

Though construction of the refinery with a capacity of 1.5 million tonnes was completed at Rachapalle in Makavarapalem mandal, about 100 km from here sometime ago, the company may not go on stream at least for a year or so.Anrak has a plan to invest Rs.14,000 crore on the refinery as well as 2.50 lakh-tonne smelter and a 90 MW captive power plant.

Anrak website claims it will draw five million gallons per day (MGD) from the Yeleru Left Main Canal, which is adjacent to the project site.“AAL has already obtained the necessary approvals for the same,” it says.

The GVMC is at present toying with the idea of introducing alternative day supply of drinking water due to deficient rain this year.

“Drinking water and agriculture are first priority of the government. Hence, there is no scope for the alumina refinery to get water from the GVMC. It is better if it explores setting up of a desalination plant to meet its requirement, instead of banking on natural resources,” pointed out Rebbapragda Ravi, executive director of Samata.

The NGO campaigns against bauxite mining in Scheduled areas.The AAL was floated by Penna Group and Ras Al-Khaimah Investment Authority (RAKIA) in 2007 following a MoU with the Government of Andhra Pradesh.

As per the agreement, the AP Mineral Development Corporation has to supply the raw material by digging bauxite ore from Jerrela and adjoining blocks.

The mines earmarked for Anrak in the Eastern Ghats are just 90 km away from the refinery site.

Following suspension of all clearances accorded to bauxite mining in the Scheduled areas of Andhra Pradesh by the Ministry of Mines in August 2010, Anrak management resolved to go the Vedanta way in Odisha by sourcing bauxite ore from Gujarat, Odisha, Chhattisgarh, and Jharkhand.

It is also understood to be in touch with Glencore, world renowned commodity supplier, to get part of its raw material requirement.