Vedanta optimistic about raw material for Lanjigarh unit

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A man walks past the Vedanta office building in Mumbai August 16, 2010. India-focused miner Vedanta Resources said it will acquire 51-60 percent of Cairn India for about $8.5-9.6 billion in cash to be funded via debt and cash resources, a move that would represent Vedanta's first foray into oil and gas, and help Edinburgh-based Cairn Energy fund an expensive drilling programme in Greenland. REUTERS/Danish Siddiqui (INDIA - Tags: BUSINESS ENERGY)

Bhubaneswar, Nov 25: Vedanta aluminium has reposed its faith on the state government in the supply of raw materials to run its alumina refinery plant at Lanjigarh in Kalahandi district.

Chief Executive Officer of the company said on Tuesday that the company is hopeful of receiving raw material for its refinery soon.

The Odisha government is actively considering some supply for the unit (Lanjigarh refinery). “It is basically to reinstate the fact that we are suffering on account of raw material supply. We have been doing this appeal to the state government and we have further revisited this appeal today,” he said.

He said the company is incurring a daily loss of Rs 3 crore in refinery operations as the plant requires at least three lakh metric tonne of Bauxite per annum to run its refinery.

At present, the production capacity of the refinery has fallen by about 50 percent due to non-availability of adequate raw materials, he said.

He also made it clear that Vedanta has decided not to close down its refinery unit.

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