The `52,000-crore Posco India steel project is in limbo, so is the fate of the `42,000-crore Milltal steel plant project. And now the `4,500-crore Vedanta Aluminium Limited’s one-million-tonne refinery project at Lanjigarh in Orissa’s Kalahandi district is facing a total closure because of the apparent “policy paralysis”.
The refinery project’s “economic viability” is in question in absence of unavailability of the bauxite, the main raw material, locally.
According to sources, the company which is incurring losses to the tune of `3 to `4 crores a day, is strongly considering the option to close down the unit this week.
Vedanta Aluminium Limited (VAL) was pledged Niyamgiri bauxite mines close to its facility at Lanjigarh. But because of frequent politically-motivated protests and subsequent litigations, which are pending disposal, it is yet to get access to Niayamgiri mine.
The company used to source bauxite from Chhattisgarh, Gujarat and Andhra Pradesh. But all those sources are “drying up” because of “local issues” and new regulatory norms in those states, informed the sources.
Seven years ago, because of the persistent protests and litigations, VAL, as an alternative option, had submitted around 26 applications to the Orissa government for new bauxite mines in the state. But the government has not processed even one. The governmental sloth has pushed the project to the brink of a virtual shutdown.
There was also a commitment from state government to provide 150 MT of bauxite by the state-owned Orissa Mining Corporation for running of the plant. Nothing has also happened in that respect.
For the last few days, the plant is being run an batch-operation mode. Experts say once the plant is fully shut down because of non-availability of the raw material, machinery and other equipment will get damaged.
“The situation at present is very difficult as bauxite is not available. The only option is there if bauxite is available in Odisha, the plant can be saved,” a company official said.
Alumina refinery is a resource-based plant. It can be operated where raw material is available.