The London-listed Vedanta Resources heaved a sigh of relief on Thursday as the ministry of environment and forests (MoEF) stopped the expansion of its existing 1 million tonne per annum (MTPA) alumina refinery at Lanjigarh in Orissa?s Kalahandi district but did not withdraw the environment clearances accorded to the refinery.

?That the existing refinery was saved is of great satisfaction to us,? Vedanta Aluminium (VAL) COO Mukesh Kumar told FE.

The ministry?s permission to source bauxite from mines is also a great relief, he added.

VAL top bosses were quite apprehensive about the ministry?s ban on sourcing bauxite from mines in Orissa and Jharkahand. The company is running the refinery with bauxite from 14 mines in the two states.

Kumar was in Lanjigarh on Thursday to tell the employees that the existing refinery was not going to be closed.

The MoEF on Thursday announced its verdict in connection with the violation of forest and environment laws by Vedanta Aluminium in Orissa.

The ministry has directed the company to submit an irrevocable bank guarantee of Rs 10 crore within 15 days to the Orissa State Pollution Control Board (OSPCB) for implementation of all environmental protection measures.

The ministry has directed that the company shall immediately install Piezometers around the red mud and ash ponds to monitor the ground water level. At least 25% of the plant area must be covered with green belt within two years.

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