Sunday, June 12, 2011

Vedanta has shelved the University project in Puri due to legal hassltes and local opposition

Economic Times, June 12, 2011

BHUBANESWAR: Vedanta Aluminium Ltd (VAL), a unit of Anil Agarwal-led Vedanta Resources PLC, will invest about Rs 10,000 crore to complete its aluminium smelter and independent power plants at Jharsuguda.


The company has so far invested around Rs 40,000-crore in its Lanjigarh and Jharsuguda projects in Orissa. It has set up a greenfield alumina refinery with a capacity of 1-million tons at Lanjigarh in Kalahandi.

"We have so far invested around Rs 40,000-crore in Orissa and will invest about Rs 10,000 crore to complete the ongoing smelter and powr projects at Jharsuguda", VAL president and CEO, Dr Mukesh Kumar on Sunday told "The ET" over telephone from Lanjigarh.

Incidentally, VAL had lined up investment of Rs one lakh crore its Orissa including the Vedanta University at Puri and expansion of aluminium smelter at Lanjigarh, but it has shelved the University project due to legal hassltes and local opposition while the latter one is mired in legal controversies.

The VAL has also plans to set up an Aluminium Park in Jharsuguda at an estimated cost Rs 15000-Rs 20000 crore that will co-locate multiple downstream industries. "The proposed park will help promote the budding enterprises by utilising molten or liquid alumina, the process would reduce the cost of producing different aluminium products like electrical appliances, aluminium extrusion and automobile parts", Dr Kumar added.

The company plans to increase smelting capacity at its Jharsuguda plant to 1.75-million tons from the present 0.5-million tons, by 2013-14. The first phase of the smelter (0.25 mtpa) is on the verge of completion and work on the second phase is progressing well. It has alos invested for 1215 MW captive power plant at Jharsuguda.

The VAL has set up a greenfield alumina refinery in Orissa's Kalahandi district with a capacity of one million tons per annum, [MTPA] and a 75 MW captive power plant. The company has plans to ramp-up its alumina refinery to five million tons from the present 1-million tons at Lanjigarh 300 MW post expansion.

The expansion of the refinery has, however, ran into rough weather with the union ministry of forest and environment stopped the expansion not giving clearance on October 21, 2010. The company and several tribal organization have moved the Orissa High Court on the issue.

Jharsuguda is also the site of the 2400 MW power plant of Sterlite Energy Ltd , a group company of Vedanta Resources. "So far we have achieved 2,415 MW in our two power plants at Jharsuguda. We hope to achieve 3,615 MW by 2012," Dr Kumar said.

In fact, Vedanta Group has come to the rescue of power-starved Orissa which is currently facing an acute power shortage due to scanty rainfall and "almost dried-up" reservoirs.

3 comments:

Dillip Kumar das said...

The VAL originally had the plan to invest 4500 crore rupees for Lanjigarh project. Though I dont know their investment plan at Jharsuguda still I am confused how VAL is telling that they have invested around 40000 crore (around 10 times of their original plan)? Is it including their bribe money to Government officials and Politicians ?

Dillip Kumar Das
Kalahandi

Digambara Patra said...

Dear Dillip Babu,
4500 crore was only for Lanjigarh.
Initial plan for Jharsuguda smelter was 7500 crore, expansion and thermal plant could have made additional amount. I beleive as the company had started expansion in Lanjigarh, it might have invsted additional amount though the matter is in court. However, possibility of last part of your question can not be avoided.
Best regards
Digambara

Anonymous said...

sabu air pollution jinsa rourkela nu bhabanipatna bhitare kaara

university,institute eeta sabu bbsr..katkya language mein bole toh bhubwanswara area thi kaara,ame ta katkya kein pusbar lagi peda heichu.nain??