Various news reports mention that BHP Biliton’s proposal has been rejected by the Orissa government as it did not have an appropriate value addition component. Following are excerpts from the Financial Express report.

The Orissa government has rejected BHP Billiton’s proposal to set up a 3-million tonne alumina refinery special economic zone (SEZ) in Gopalpur with an investemnt of $3.3 billion (Rs 14,000 crore). …

The government reportedly refused to accept the offer on the ground that the project did not have any proposal for aluminium smelter. The state government, which is insisting on value addition to at least 50% of the alumina in the state as part of its bauxite mineral policy, has asked the company to submit a fresh proposal with facilities for production of aluminium.

BHP Billiton has sought bauxite mines with proven reserve of 300 million tonne and 5500 acre in Gopalpur for the project.