Bhubaneswar: The Supreme Court has directed Odisha-based National Aluminium Company Ltd (Nalco) to allocate 90,000 ton of of metallurgical-grade calcined alumina to Vedanta Resources Ltd (VRL), UK as final settlement of the entire outstanding quantity remaining to be executed.
Hearing a contempt petition filed by Vedanta against Nalco over non-compliance of the apex court’s order on January 14, 2020, the bench of Justices DY Chandrachud and V Ramasubramanian directed the Nalco to allocate the alumina between May 1 and July 31.
The bench also directed VRL to provide a revolving corporate guarantee together at least 48 hours in advance of the actual delivery of assignment to enable Nalco to receive the export benefits. The total quantum of aluminium will be delivered to Vedanta firm at Visakhapatnam on FOB basis, though it will be used in Vedanta’s SEZ unit at Jharsuguda, the bench said.
It may be noted that VRL had emerged as successful bidder for Nalco’s alumina tenders meant for exports. But the leading producer of low-cost metallurgical-grade alumina had refused to allow the UK firm to take the consignment to its SEZ unit and insisted on terminating the transaction.
Besides, Nalco had also asked VRL to obtain Let Export Order (LET) from the Customs authorities at Visakhapatnam Port. Then Vedanta had filed the contempt petition alleging “wilful disobedience” of its January order.
While disposing of the Vedanta’s contempt petition on Wednesday, the bench 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 the same is meant to be used by Vedanta SEZ unit at Jharsuguda,” the Financial Express quoted the bench saying in its order.
