Vedanta to shut Lanjigarh plant on high production cost

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26 Aug, 2025 12:21

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Vedanta on Thursday said that collapse in aluminium prices and lack of availability of bauxite from Odisha had forced the conglomerate to opt for a gradual closure of its Lanjigarh facility in the state. In a BSE filing, the Anil Agarwal-led firm said, "While we continue to do our best to sustain the operations, we are severely constrained by this excessive cost burden on our Lanjigarh operations, but seem to be left with no choice to implement a gradual closure." Aluminium prices globally have collapsed in the past few months and the current indications are that this trend will continue, the filing added. "Our Lanjigarh operations have additionally been affected by the non-availability of bauxite from within the state of Odisha. As a result, our cost of production is significantly higher and is impacting the viability of our Lanjigarh operations," Vedanta said. Vedanta Aluminium, one of India's largest aluminium producers, operates a refinery having a capacity of one million tonnes per annum (MTPA) at Lanjigarh in Odisha. Earlier this week Vedanta Aluminium CEO Abhijit Pati had said, "In the absence of bauxite supply from Odisha, the current market dynamic has threatened our survival. With a heavy heart, we are bound to take some steps which are going to be painful." The firm is "forced" to initiate the process of gradual closure of the facility and is taking steps to formally communicate this to the concerned state departments about the development, it had said in a statement. "With the current market turmoil, which is unlikely to improve soon and in the absence of access to bauxite from within the state, the Lanjgarh refinery is facing a daily loss of Rs 3 crore. Hence, we are forced to initiate the process of gradual closure," plant's chief operating officer K K Dave had said.

Vedanta shares were trading at Rs 90.65 apiece, up by 5.96 percent in the afternoon trade on BSE.