Even though the company was cornered after it failed to get the nod of gram sabhas for the bauxite mining in Niyamgiri Hills, it received full support of the ruling BJD government in Odisha in the election year. As per the new agreements, Vedanta can source bauxite from L&T’s reserves.
The brainstorming concluded that Vedanta can get bauxite from L&T’s reserves at Sijimali and Kutrumali mines in Rayagada and Kalahandi districts respectively. The latest assurance from the Odisha Government and L&T came as a big relief for the Rs 5,000 crore alumina refinery plant at Lanjigarh in Odisha.
Vedanta’s Lanjigarh unit needs 3 million tonnes of bauxite to run the 1 million tonne per annum alumina refinery. Earlier, Vedanta had entered into a joint venture with L&T @ Rs 12,000 crore in which L&T would invest about Rs 4,000 crore.