Vedanta is back in action with smelter ramp up and coal linkage

<p>Vedanta Limited is slowly getting back to full-fledged operations in all its facilities after a slowdown due to a number of issues like potline failure due to power shut down, raw material scarcity, low metal price, and cheap imports from China etc.&nbsp; According to a press update from Vedanta Limited the Third 660 MW unit of Talwandi Sabo Power Plant in Punjab has started commercial production on 24th August 2016 and will be capitalized in September 2016.<br /><br />On the aluminium segment, Vedanta confirmed that they have completed commissioning of the first pot line at the 1.25mtpa Jharsuguda-II Aluminium smelter in July 2016. The commissioning of the second line is continuing and that of the third line of the smelter would start in September 2016.<br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/vedanta%20smelter.jpg" alt="News" width="350" height="300" /><br /><br />Vedanta also updates that the 325kt BALCO-II smelter has started operation with all 336 pots working in August, and are expected to be capitalized by October 2016. The current run-rate of Aluminium production is 1 mtpa, and the overall FY2017 volume guidance remains unchanged at 1.2mn tonnes.<br /><br />Another silver lining in Vedanta&rsquo;s operational update is that the firm has secured 6.09 million tonnes per annum of coal for their captive power plants during the coal auction conducted by Coal India Limited in August 2016.&nbsp; This would secure power supply to their Aluminium smelters at Jharsuguda and Balco. As mentioned in the MMDR act, the allocation would be for 5 years with an option to extend this further. This will contribute to the long-term security of coal requirement for their smelters at a competitive price.</p>