Odisha government amends long-term linkage policy for bauxite
The State Cabinet in its meeting held yesterday, February 21, has approved the amendment of the long-term linkage policy to facilitate bauxite linkage. Chief Secretary Aditya Prasad Padhi said 70 per cent of the saleable stock of bauxite will be made available for long-term linkage and the balance 30 per cent sold through national e-auction.
Padhi said: “As a general principle in the national e-auction, Odisha Mining Corporation (OMC) will directly deal with the end-user industries. Participation by traders will be considered only if there is persistent lack of adequate response from end-user industries.”
The decision will enable Vedanta Limited to source bauxite from OMC on a long-term basis at auction rates. Vedanta has been struggling to source bauxite for its Lanjigarh alumina refinery in Kalahandi district.
“There will be of course some respite to the company due to the long-term linkage policy. But, everything depends on price of bauxite to be determined by the state government later,” an official of Vedanta said.
A state run mining entity Odisha Mining Corporation (OMC) had received all clearances for Kodingamali bauxite mine and expects to commence operations at the mine in two months.
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