Vedanta hopeful of using IPP power for smelter

Alternate raw material supplies continue to elude Lanjigarh refinery

Anil Agarwal controlled Vedanta Resources Ltd said it is hopeful of getting the Odisha government’s nod to use power from group owned Sesa Sterlite’s 2400 Mw coal based plant to run its aluminium smelter complex at Jharsuguda.

“We have 3,600 Mw power generating capacity at Jharsuguda (including 1,200 Mw captive capacity). We are running our Jharsuguda smelter at 25 per cent capacity. The chief minister assured us that the entire power can be used to run the smelter so that more jobs and revenue is created for the state,” Agarwal said after meeting chief minister Naveen Patnaik.

Sesa Sterlite’s 1.25 million tonne per annum (mtpa) aluminium smelter set up as a sector specific Special Economic Zone (SEZ) at Jharsuguda is lying idle presently for want of power. The company has already invested Rs 12,000 crore on the smelter complex. Commissioning of the SEZ facility promised to boost the local economy by generating business potential worth Rs 15,000 crore every year. Direct and indirect employment opportunities for nearly 12,000 persons are set to be created.
 

“Since Odisha is now a power surplus state, we can afford to use the entire power generated for running our smelter unit. Whenever the state needs power, we can supply it,” said the Vedanta Group chairman.

Agarwal said there is potential to set up 100 aluminium downstream units across the state. “We have a licence to produce 1.7 million tonne of aluminium and five million tonne of alumina. We are going to create the largest employment for the state,” he added. Asked if he discussed raw material issues with the chief minister, Agarwal said, “He (chief minister) was very positive about the bauxite mines and said the matter will be dealt with top priority. Presently, we are running our one million tonne Lanjigarh refinery on imported bauxite.” On sustainability of Lanjigarh refinery, he said, “These plants are set up for 100 years. It is bread and butter for the people. Such plants are meant for development.”

Agarwal admitted the Lanjigarh refinery was running on losses but exuded hope of turning profitable after securing raw material supplies.

Vedanta’s bid to mine bauxite atop ecologically fragile Niyamgirihills got a blow with the Union ministry of environment & forests (MoEF) rejecting the mining plan after local tribals unanimously voted against the plan in a referendum. In November last year, the state government had assured Vedanta that it would take all steps to ensure that mining lease could be granted in the next two months for small laterite mines which could serve as a short-term breather for its refinery. Vedanta had also filed 33 applications for alternative bauxite mines currently pending at different stages of approval.