The company would spend about Rs800bn ($15.4bn) to set up a 1.5Mt capacity refinery besides 250kt capacity smelter and 90MW gas-based captive power plants at Makavaripalem near Visakhapatnam, Andhra Pradesh.
“APIIC has acquired nearly 2100 acres from farmers at Makavaripalem for the project. Of this, 1900 acres have been allotted to Anrak while the remaining 300 acres would be used for rehabilitation purposes,” said Eswar Rao, chief general manager, APIIC.
APIIC paid Rs250k ($4.8) per acre to local people who lived on the site while Anrak paid another Rs2k ($3.8) for each acre to farmers. The company will also give Rs50k ($0.9) to each land-losing family as part of the rehabilitation package. About 2000 families are eligible for this rehabilitation package, he said.
The Andhra Pradesh Mineral Development Corporation (APMDC) will supply bauxite ore for the project. Bauxite reserves in the agency area of Visakhapatnam district is estimated at 700Mt.