Vedanta says considering layoffs at Odisha plant

BHUBANESWAR Wed Dec 19, 2012 3:03pm IST

A bird flies by the Vedanta office building in Mumbai August 16, 2010. REUTERS/Danish Siddiqui/Files

A bird flies by the Vedanta office building in Mumbai August 16, 2010.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   

BHUBANESWAR (Reuters) - Vedanta Aluminium Ltd (VAL), India's largest aluminium maker, is considering layoffs within two months at its alumina refinery in Odisha as hopes of an immediate revival of the plant fade, the president of the company said.

VAL, a unit of London-listed Vedanta Resources (VED.L), has about 550 employees. It closed down the 1-million-tonne per year refinery exactly two weeks ago due to a shortage of bauxite, the key raw material used to produce alumina.

India, the world's fifth-biggest bauxite producer, has been limiting the issue of bauxite leases mainly because of local protests over land acquisition.

"We don't know how long this crisis will continue. We don't have any other choice left but to retrench staff," VAL President Mukesh Kumar told Reuters.

"It could be 10 or 100 by January-February depending on the situation," Kumar said.

About 75 employees, including engineers and executives, have already left the refinery, at Lanjigarh in Kalahandi district, about 450 kilometres from state capital Bhubaneswar, in the past three months, while many more are scouting for opportunities.

The Lanjigarh plant has faced bauxite shortages since its commissioning in August 2007, after a supply arrangement with a state agency to source from the nearby Niyamgiri hills ran afoul with the federal environment and forest ministry and got mired in litigation.

The refinery requires 10,000 tonnes of bauxite a day to operate at full capacity.

Vedanta says the plant is designed for local bauxite and only this can ensure its sustainability.

(Reporting by Jatindra Dash; editing by Malini Menon and G.Ram Mohan)

FILED UNDER:
  • Most Popular
  • Most Shared

Pending Reform

REUTERS SHOWCASE

Power Theft

Power Theft

India to invest $4 billion to tackle power theft  Full Article 

Debt Funds

Debt Funds

India monitors foreign flows into debt funds, may tighten rules  Full Article 

Bulgari Back in India

Bulgari Back in India

CEO: we shouldn’t have left India so we’re back  Full Article 

 Hindu "Modi-fication"

Hindu "Modi-fication"

Fears grow about Hindu "Modi-fication" of education  Full Article 

Weak Credit

Weak Credit

Hard to hit tax revenue target, credit weak - Jaitley  Full Article 

China Rate Cut

China Rate Cut

China surprises with interest rate cut to spur growth  Full Article 

Gold Imports

Gold Imports

RBI cautious on response to gold import surge  Full Article 

Economic Corridor

Economic Corridor

China commits $45.6 billion for economic corridor with Pakistan  Full Article 

Overseas Funds

Overseas Funds

RBI says overseas borrowed funds can be parked with banks in India  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage