Vedanta plans Orissa plant with L&T

Bhubaneswar, Jan. 21: Vedanta Group, the UK-based aluminium giant, is keen on a steel plant in Orissa in collaboration with Larsen & Toubro.

“We are going to sign a tripartite agreement with the state and Larsen & Toubro,” Vedanta Group chairman Anil Agarwal told reporters after meeting Orissa chief minister Naveen Patnaik. He did not elaborate on the project.

About five years ago, Sterlite Iron and Steel Company Ltd, a subsidiary of Vedanta, had signed a pact with the Orissa government to build a 5-million-tonne steel plant at Palasponga in Keonjhar district in two phases at a total investment of Rs 12,500 crore.

However, the project had not made any progress. Sources said Vedanta would pursue that project with L&T.

Agarwal said Vedanta had already invested Rs 39,000 crore in Orissa in various projects.

“I apprised the chief minister of the progress of our Orissa projects,” he said.

Vedanta’s one-million-tonne-per-annum alumina refinery has started production at Lanjigarh in Kalahandi district.

But the company is facing a raw material shortage and has to procure bauxite from other states as the Centre is yet to allow mining in the Niyamgiri mines.

Sources said the problem was discussed with the Orissa chief minister and the company had been assured of bauxite from alternative sources.

“I think getting bauxite should not be a problem. We are sitting on the world’s fourth largest bauxite deposits in Orissa,” Agarwal told reporters.