ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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The Orissa Aluminium Complex-Points toward a Debate

Points toward a Debate Kannan Srinivasan Vinod Vyasulu S Rajagopalan The financial viability and the foreign exchange earnings of the public sector Orissa aluminium pro- ject depend crucially on alumina prices and the interest rate on the Eurocurrency loan. Given that present interest rates are substantially higher than assumed by the Government of India and given that we do not possess any leverage to make the alumina price reflect the cost of money or the cost of production, the project seems viable only on the most optimistic assumptions about alumina prices and money and production costs.

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