Ministerial panel meet on raw material supply ahead of VAL closure notice

Bhubaneswar: A day before the notice of Vedanta Aluminium Limited (VAL) to shutdown its Lanjigarh refinery in Kalahandi district ends, a panel of ministers will meet for second time on Tuesday to discuss on the supply of raw materials to the end use industries in the state.

According to sources, the panel, who first met on November 26 would submit its report by January 2013 on how companies can avail bauxite, chromite and manganese in a long term basis. The discussion will also focus on issues the industries are facing in receiving raw materials after restrictions put in place, said sources close to the development.

Earlier the state government by virtue of a resolution had decided to vest all the mines with the State-owned Odisha Mining Corporation (OMC) which would develop the mines and distribute raw materials to the user industries as per their requirements.

Vedanta group, in September had served a notice to the state government to close its one million tonne refinery citing severe shortage of bauxite to run the plant.

“We are yet to get an assurance from the state government regarding the supply of bauxite. We have no option but to stick to the time line,” a company official said on condition of anonymity.  

The shutdown is likely to affect 7,000 workforce both directly and indirectly, said sources.