Have nothing to do with Ras-Al-Khaimah Investment Authority arbitration: Centre to Andhra Pradesh

VIJAYAWADA: The Centre has reportedly informed the State that it has nothing to do with the  international arbitration raised by Ras-Al-Khaimah Investment Authority (RAKIA) over the cancellation of a Bauxite supply agreement entered into between AP Mineral Development Corporation and ANRAK Aluminium Limited. 

As the hearing of the case is going on in a London court, the Centre, which is also a party in the arbitration petition, is learnt to have faulted the State government for cancelling the agreement without informing the Centre.

RAKIA and the Penna Group jointly set up an alumina refinery near Makavarapalem in Visakhapatnam Agency area based on an MoU signed with the APMDC for bauxite mining. Later, the State government decided to ban mining in the Agency areas and cancelled the agreement. RAKIA went for international arbitration seeking compensation.

Sources in the Mining department say that though the AP Government expressed its view that it had no objection for the functioning of the aluminum plant in Vizag agency area by getting the required bauxite from Odisha or other location outside, there was no progress on the proposal.