Saved by Aluminium-for-Power Deal

Saved by Aluminium-for-Power Deal Hansavivek MADRAS ALUMINIUM has entered into an agreement with Andhra Pradesh government with the concurrence of the Tamil Nadu government, whereby it will barter during the current year 6,000 tonnes of EC aluminium for 120 million units of power during the summer months. In TN state now there is a power cut of 15 per cent for continuous process industries like aluminium. The company is, however, safeguarded to the extent of 25 per cent through the agreement with AP government. This has saved it from a disaster such as was rig experienced in the past. The agreement is for two years lasting upto the end of 1980, subject to review at the end of 1979. Thanks to this agreement and the commissioning of the Tuticorin project during July 1979 which would add another 200 MW to the TN grid, MALCO should be free from the hazard of power cut to a considerable degree upto the end of next year.