Vedanta not to pull out of Orissa

Vedanta Group, which was denied mining rights in Orissa's Niyamgiri hills, on Thursdaysaid it will not pull out of the state.

"There is no possibility of pulling out of Orissa," chief operating officer of Vedanta Group's refinery at Lanjigarh Mukesh Kumar told reporters after meeting state steel and mines secretary here.

The fate of the Lanjigarh refinery unit also hangs in balance in view of a show cause notice from union ministry of environment and forest. Kumar said Orissa has 54.89 per cent of the country's total bauxite reserve and "one has to remain in Orissa in order to flourish in the aluminium sector."

"There is also no question of shifting to any other state in the country," he said in reply to a question.

Asked to comment on MoEF questioning Vedanta as to why permission to its refinery unit should not be withdrawn for violating environmental laws, he said the company had not indulged in any illegal act.

"We have already replied to the show case notice of the ministry. The company had submitted documentary proof to answer each question raised by the ministry," he said.

The UK-based company, which had already started production at both its refinery and smelter plants located at Lanjigarh and Jharsuguda respectively, is yet to get raw material link.