Bauxite major Ashapura Minechem Ltd will set up a Rs 2,500 crore Alumina Refinery at Kutch in Gujarat under a joint venture with a Chinese firm QTX on a 50:50 basis.
The alumina refinery will have debt-equity component of 2:1 and the financial closure for the same is expected to be completed by in the next two months. The project construction will take place from September this year after obtaining all regulatory clearances including one from the environmental department.
Ashapura Minechem Managing Director Chetan Shah said with a 2:1 debt-equity ratio, the company and the Chinese firm QTX will chip in the equity contribution of Rs 800 crore and the remaining Rs 1,700 crore will be raised through debt such as long term loans.
“The Rs 2500 crore project will be set up in two phases. QTX will buy 75 per cent of total production while the rest will be sold in the open market. We are expecting to take the advantage of tremendous shortage in Chinese market,” Mr Shah said.