Vedanta may leave Orissa

Bhubaneswar

Oct. 11: Procedural delays, bureaucratic hassles and lack of political will may result in the possibility of yet another foreign direct investment (FDI) project shying away from Orissa.
The London-based Vedanta Alumina Limited (VAL), which has already set up its 4,500-crore refinery project at Lanjigarh in the Kalahandi district much ahead of the schedule, now faces threat to its survival as it has not yet been allowed for the mining of bauxite at Niyamgiri hills near the project site despite complying to the directions given by the Supreme Court.
VAL is sourcing bauxite – the main raw material for the production of alumina - from Gujarat and its BALCO project which is in Chhattisgarh, so it is paying hefty sums on the transportation. According to company officials, bauxite transportation charges from such distant places accounts for half of the production cost.
The VAL to feed it refinery project had entered into a JV with the state-owned Orissa Mining Corporation — for exploitation of bauxite from Niyamgiri hills. However, a section of locals and some environmentalists objected to it on the ground that it would jeopardise the local eco-system.