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Odisha Govt expresses inability to supply bauxite to Vedanta Alumina
Edited by : AL CIRCLE
2 min read
In a major setback toVedanta Aluminium Limited (VAL), the Odisha Government on Tuesday expressed its inability to immediately supply bauxite to Vedanta Aluminium Limited (VAL) after the company sought permission to shut down its refinery at Lanjigarh due to scarcity of raw material.
After attending the High Level Clearance Authority (HLCA) meeting Chief Secretary B K Patnaik said, "The state government is not ready at the moment to supply bauxite to Vedanta's refinery at Lanjigarh. VAL's case in the matter of bauxite mining is pending in the Supreme Court ... They (VAL) are trying to arrange raw material for the plant
Though the state has a vast reserve of the mineral, it is not able to explore it due to different reasons including forest clearance and mining plan, he said.
The state government's stand was made known after VAL formally informed the administration to allow it to shut down the refinery from December 5.
Responding to Government’s decision, VAL Chief Operating Officer Mukesh Kumar said Kumar said despite the state government's commitment to supply raw material to the refinery, it not given 'even one gram' of bauxite so far.
Under the situation, the company had already incurred Rs 2500 crore loss to run the Lanjigarh refinery and was not in a position to procure bauxite from other sources.
After attending the High Level Clearance Authority (HLCA) meeting Chief Secretary B K Patnaik said, "The state government is not ready at the moment to supply bauxite to Vedanta's refinery at Lanjigarh. VAL's case in the matter of bauxite mining is pending in the Supreme Court ... They (VAL) are trying to arrange raw material for the plant
Though the state has a vast reserve of the mineral, it is not able to explore it due to different reasons including forest clearance and mining plan, he said.
The state government's stand was made known after VAL formally informed the administration to allow it to shut down the refinery from December 5.
Responding to Government’s decision, VAL Chief Operating Officer Mukesh Kumar said Kumar said despite the state government's commitment to supply raw material to the refinery, it not given 'even one gram' of bauxite so far.
Under the situation, the company had already incurred Rs 2500 crore loss to run the Lanjigarh refinery and was not in a position to procure bauxite from other sources.
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