Vedanta unit shuts down temporarily

After operating its refinery at Lanjigarh for seven years, Vedanta Aluminium Ltd announced a temporary shutdown of its unit due to lack of raw material.

Published: 14th October 2012 11:22 AM  |   Last Updated: 14th October 2012 11:22 AM   |  A+A-

After operating its refinery at Lanjigarh for seven years, Vedanta Aluminium Ltd (VAL) on Saturday announced a temporary shutdown of its unit due to lack of raw material.

Simultaneously, its captive power plant generating 75 MW has also been shut down.

“Yes, it is a painful decision. We have shut down the refinery for the time being today due to acute scarcity of bauxite. It is a temporary closure,” VAL Chief Operating Officer Mukesh Kumar said.

“We had earlier planned to shut down the refinery on December 5. The situation did not permit us to continue operation without raw material support,” Kumar said.

Stating that the company would also shut down the captive power plant, Kumar said it informed the local power distribution company to supply at least 8 MW for keeping certain machinery in running condition.

The company was running the refinery by utilising only 35 to 40 per cent of its 1 mtpa capacity, he said, adding the VAL would resume production as soon as it gets bauxite.

The company requires 10,000 MT of bauxite everyday to operate its 1 mtpa capacity.

“My teams are already on the job to get the raw material from anywhere in India,” Kumar said.

The Odisha Government, which in its MoU with the aluminium major had committed to supply bauxite, has expressed its inability to come to the rescue of the company immediately.

 The closure of the refinery would hit the livelihood of about 6,500 people, including 550 employed directly, 5,000 engaged indirectly and 1,000 self-employed in and around the plant, sources said.   

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