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Odisha Pollution Board Asks Vedanta To Close Five Power Units

The partial closure may marginally impact cost of production of aluminium, Vedanta says.



Trucks are loaded with iron ore at a Kalinga Mining Corp. iron ore mine (Photographer: Adam Ferguson/Bloomberg)
Trucks are loaded with iron ore at a Kalinga Mining Corp. iron ore mine (Photographer: Adam Ferguson/Bloomberg)

Metals and mining conglomerate Vedanta on Thursday said the State Pollution Control Board (SPCB), Odisha, has directed it to temporarily close five units of its power plants which may marginally have an impact on the cost of production of aluminium.

The SPCB has asked the company to submit a “concrete plan” to comply with certain conditions, it said.

In a filing to BSE, Vedanta said, “Following a breach in the Ash Pond dyke wall at Jharsuguda at the end of August, the SPCB, Odisha, on September 13, 2017 served a direction resulting in temporary closure of three units of 135 MW each of the 1215 MW power plant and two units of 600 MW each of the 2400 MW power plant.”

Permission has been given to the company to operate the remaining units of the 1215 MW power plant to operate until October 12, 2017. Similarly, the other units of the 2400 MW plant have received a go-head to operate till September 20.

The SPCB has asked the company for compliance of certain conditions with a concrete plan within five days. The company is complying with the order of SPCB along with a request for the revoking the said closure orders.
Vedanta BSE Filing 

The action may require a temporary power purchase of up to 200 MW and hence a marginal impact on cost of production of aluminium, Vedanta said. The company, however, expects to be able to sustain the smelter capacity without affecting its production volumes.

Vedanta added it is working towards the lifting of the closure orders of SPCB at the earliest, to ensure that production of aluminium does not take a hit.