The New Indian Express, Sept 7, 2012
The Vedanta Aluminium Limited (VAL) on Thursday served a closure notice to the State Government owing to the acute shortage of raw materials to run its 1 mtpa refinery at Lanjigarh in Kalahandi district.
In the notice, it was stated that as per the MoU signed between VAL and the State Government in 2004, it had been agreed that the government would supply 150 MT of bauxite ore to the company through Odisha Mining Corporation to establish the alumina refinery at Lanjigarh.
“Based on this MoU, VAL had set up this plant and started production. But it had to arrange for bauxite from other sources and in the process, the company incurred a loss of Rs 2,500 crore. However, even after eight years of the MoU, no arrangement has been made by the State Government to provide bauxite,” the notice read.
“We have proposed to go for a temporary closure (stopping the refinery) by December 5,” Mukesh Kumar,Chief Operating Officer (COO) of VAL, said.
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