The Andhra Pradesh government signed a memorandum of understanding (MoU) with the government of Ras Al Khaimah, assuring supply of bauxite for a proposed alumina plant in Visakhapatnam district.
The MoU was signed by Y. Srilakshmi, secretary, the Industries and Commerce Department, and Sheikh Saud Bin Saqr Al Qasimi, the crown prince and deputy ruler of Ras Al Khaimah in the presence of Chief Minister Y.S. Rajasekhara Reddy here in the evening.
Ras Al Khaimah has come forward to set up the 2.5 million tonnes alumina plant and an aluminium smelter of 0.25 tonnes capacity with a total investment of $2 billion (about Rs.90 billion).
It had requested the state to supply bauxite to the plant by allocating 224 million tonnes of bauxite deposits falling in the Jerrela group of villages of Chintapalli block of Vishakhapatnam district.
The Andhra Pradesh Mineral Development Corporation (APMDC) will mine these deposits and supply the material to the proposed industry.
The project is proposed to be completed within 36 months after all clearances are received. It is expected to provide direct and indirect employment to about 10,000 people.
The department of economic affairs of the Indian government has already accorded clearance for this project.
Ras Al Khaimah is one of the United Arab Emirates and is situated in the northern part of the Arab peninsula, bordering Oman.