VISAKHAPATNAM: In a dramatic turn of events, Jindal South West Aluminium Limited (JSWAL) has decided to explore Srungavarapu Kota for locating its 1.4 million tonnes per annum alumina refinery after zeroing in on Sabbavaram, about 40 km. from here.

Incidentally, the decision has been taken after a public hearing held here during last month-end by the district administration amid protest by Left party activists and some NGOs.

When contacted, JSWAL Director Sandeep Gokhale told The Hindu on Tuesday that depending on techno-economic viability, they would select between Sabbavaram and S.Kota for setting up the alumina refinery complex at an estimated cost of Rs.3,500 crores. He said the smelter would be located somewhere close to the coalmines - which would be the raw material for smelting. Gas from Krishna-Godavari basin might not be a viable option, he said.

JSWAL, part of Rs.18,000-crore Jindal group, has stated in its rapid environment impact assessment (EIA) report that the establishment of the refinery and a township at Sabbavaram would not cause any displacement after identifying 1700 acres of Government land. However, villagers who are under occupation of part of the land for several years, are opposed to acquisition without offering them compensation as per rehabilitation and resettlement policy.

Strategic move

The S.Kota option is being evaluated for strategic reasons. Distance-wise, it is closer to Galikonda, the bauxite mining site near Araku and has rail connectivity making transportation of the ore easy. It will also reduce freight expenses. However, availability of water has to be ensured as a huge quantity is required.

JSWAL signed a memorandum of understanding with the State Government on July 1, 2005 for setting up the alumina refinery and 0.24 million tonnes per annum capacity smelter and a 600-mw captive power plant.

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