Bhubaneswar, Aug 28: Vdanta Aluminium has started process to close its Lanjigarh plant in Odisha. The plant’s output would be declined to half and 2,000 people associated with the plant would be losing their jobs following the closure of its plant.
The company authorities said that the sharp fall in aluminium rates and non-availability of bauxite from within the state of Odisha were the major reasons behind the closure of its plant in Odisha. Initially the one out of two steams at Lanjigarh plant will be closed reducing its production at plant by fifty percent.
Vedanta Aluminium CEO Abhijit Pati said that it was a gradual process, as the company was concerned about the high input costs and non-availability of bauxite for its plant. He said that they pained to take decision to close their operation in Odisha.
He said the closing process of one of the steams at plant would take two months of time, and if things would not improve then the company may consider closing the other steam too. Vedanta’s aluminium arm is one of the country’s largest producers of the metal and operates the refinery, which has a capacity of one million tonnes per annum (MTPA) and its plant in Odisha provides direct employment to 2,000 people and indirect to another 8,000. Pati urged to the government to take serious note over the issue as 2,000 jobs would be affected due to the closure of the plant.
The management filed the development with Bombay Stock Exchange (BSE) stating that the company constrained by excess cost burden on Lanjigarh operations and management decided to close its plant in Odisha.