The Vedanta Lanjigarh Refinery plays an essential role in India’s aluminium value chain. Located in Odisha’s Kalahandi district, Vedanta’s alumina refinery has backed regional economies since its inception, but long lacked secure local bauxite supplies for Vedanta bauxite mines.

Despite these challenges, Vedanta Aluminium embarks on a 5 million tonnes-per-annum (mtpa) capacity expansion and has supplemented its supply-chain resilience by upgrading rail infrastructure to back this growth. The company has constructed a 13.4 km long new railway line, which will ensure wholesome raw materials and derivatives transportation by rail.

The railway infrastructure expansion is a strategic step taken by the company to ensure seamless production and transportation at the refinery.

Rail Infrastructure – The Backbone of the Expansion

Transporting millions of tonnes of raw materials and finished alumina requires the company to have freight corridors. The commissioning of the expanded railway network will ensure hassle-free inbound and outbound movement of raw materials and commodities. Moreover, this initiative supports Vedanta’s commitment to achieving Net Zero Carbon by 2050, as the new railway line will reduce carbon emissions by 262 tonnes of CO₂ per year.

  • The newly inaugurated 13.4 km railway line is a prominent juncture in Vedanta Lanjigarh’s journey towards 100 per cent rail-coefficient logistics functionality.
  • It includes all goods conveyance only through rail.
  • Furthermore, the company has introduced six new loop lines within the in-plant yard, which is supported by an upgraded electronic signalling system.

Through all these developments, Vedanta aims to increase the plant’s capacity to handle up to 25 million tonnes of raw materials and commodities annually, accommodating 20 rakes daily with improved transport competence.

A Transformative Step to Streamline Logistics

According to Sunil Gupta, Chief Operating Officer at Vedanta Aluminium, the commissioning of a 13.4 km railway line at Vedanta Lanjigarh is a transformative move taken to streamline logistics, reduce the overall time, and support the company’s long-term production goals. The move also reinforces the group’s commitment to digital innovation and safe operations.

By integrating advanced railway infrastructure with hi-tech digital operations, Vedanta Aluminium is setting new benchmarks in the aluminium industry. This strategic expansion not only enhances Vedanta Lanjigarh refinery’s chain efficiency but also reinforces the company’s contribution towards India’s industrial growth and development.

Vedanta Bauxite Mines: A World-Class Refinery Without Local Bauxite Access

Despite all the initiatives taken by Vedanta in the region’s development, the Vedanta Bauxite Mines Lanjigarh project continues to operate without a secured nearby bauxite source.  Rather, the company has to import bauxite from other states, including Gujarat, Maharashtra, and even overseas. The locals and tribal leaders, aware of the vast Kalahandi deposits, are urging the state government to permit Vedanta’s mining of local bauxite.

Despite the approval by the Supreme Court Justice S.H. Kapadia of Vedanta’s Bauxite Mines Lanjigarh project, the company has to source bauxite from other states. Secure local mining would spur land-lease revenues, provide direct employment to indigenous communities, and help in the growth of ancillary businesses (transport, services, retail).

In line with this, a delegation submitted a memorandum to the state’s MLAs, Sagar Charan Das (Bhawanipatna), Sudhir Ranjan Pattjoshi (Dharamgarh), and Pradeep Kumar Dishari (Lanjigarh), showing the urgency for responsible mineral extraction to foster employment, infrastructure growth, and industrialisation. In recent months, more than 4,000 people from Lanjigarh and nearby villages gathered to show their support for Vedanta bauxite mines.

Vedanta’s Responsible Mining Framework

Vedanta has always supported Odisha’s growth, while reaffirming its commitment to sustainable mining. To support the region’s development, Vedanta announced an investment plan worth INR 1,200 crore over the next 25 years. This investment will be made through the existing Lanjigarh Periphery Area Development Fund and the proposed Sijimali Periphery Area Development Fund. Both these funds aimed at transforming the region’s growth.

The funds will be utilised to improve infrastructure such as roads, schools, and hospitals; create job opportunities for the locals; and build training centres to empower the skills of the people.

Final Thoughts

With India aspiring to become a global manufacturing hub, ignoring the strategic value of Vedanta Lanjigarh refinery would be a costly mistake. Prioritising bauxite allocation to Vedanta is not just about supporting a single company; rather, it’s about balancing economic growth with local development

FAQs

Aiming to reduce its carbon footprint, Vedanta Aluminium constructed a 13.4 km long new railway line, which will ensure wholesome raw materials and derivatives transportation by rail. It will reduce costs and emissions by replacing road hauls with rail.

Vedanta’s Bauxite mines in Lanjigarh are anticipated to bring in INR 2,200 crore annually in revenue for the state government. Moreover, the project will result in the creation of more than 1,500 direct and indirect job opportunities in the region.

Yes, all Vedanta’s mining projects are environmentally safe.

Through rail and local mines, Vedanta aims to make Lanjigarh a world-class, self-sustaining alumina hub. India ranks fifth globally in bauxite reserves, and Odisha holds a significant position in the country's total reserves. Indeed, these developments will help in the economic and social development of Odisha’s tribal belt.

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