Ashapura Group receives Final Go Ahead for Alumina Refinery

Ashapura Group has been selected to promote and implement the 1 million ton Alumina Refinery in Kutch district of Gujarat by the Gujarat Government.

The original decision taken by the Government of Gujarat was challenged in the Gujarat High Court by an American corporation. Pursuant to the Court directive in June of this year, the final decision was left to the Chief Minister of Gujarat with the condition that it will be binding on both parties and there will be no further litigation permitted.  After evaluating the merits of both parties, the Government of Gujarat has agreed to grant this project to the Ashapura Group.

The 1 milllion ton refinery to be implemented in one or two phases will have a total outlay of approximately Rs. 2500 crores.  The project will be implemented as a JV between Ashapura Minechem Limited and QingTongXia Aluminium Group Company Limited and associates.  QingTongXia is one of the largest single location smelter in China located in Ningxia Hui Autonomous Region in North West China. The project will be financed with a mix of debt and equity in the ratio 2:1. 

Commenting on the project, Mr. Chetan Shah, Managing Director, Ashapura Minechem Limited stated, inspite of the litigation and uncertainty about the project a lot of planning and preparatory work has already been completed and hence it will be easier for start off the actual implementation without further delay.  We are committed and confident that we will be able to convert this dream of the Gujarat State into a reality in the quickest possible time.