Tribunal rejects claim against APMDC

Vijayawada: The London Arbitration Tribunal in a recent award dismissed the claim of

Ras Al Khaimah Investment Authority

(

RAKIA

) seeking damages or loss that it incurred because of the cancellation of Bauxite Supply Agreement (

BSA

) by Andhra Pradesh Mineral Development Corporation (

APMDC

).The arbitration tribunal observed that it has no jurisdiction to decide the matter as the agreement was made between ANRAK Aluminium Limited and APMDC which are both Indian companies.Government of

Ras Al Khaimah

entered into a Memorandum of Understanding (MoU) with the state government to set up an alumina refinery, aluminium smelter and power plant through RAKIA. The project was vehemently opposed by NGOs, environmental activists and in 2016, the state government decided to cancel the BSA. The tribunal clarified that only direct action of a government that cause loss to an investor of other country can invoke the jurisdiction of the arbitration tribunal.