Stories
Vedanta Aluminium Faces Setback: High Court Dismisses Bauxite Policy Plea.
- •The Odisha High Court has dismissed Vedanta Aluminium's writ petition challenging provisions of the bauxite linkage policy.
- •The company had sought the restoration of the old pricing mechanism for bauxite received from Odisha Mining Corporation (OMC).
- •The court stated that terminated agreements, whose termination was not challenged by the company, cannot be reinstated or indirectly enforced after a long time.
- •Vedanta operates an alumina refinery in Lanjigarh and an aluminium smelter in Jharsuguda, claiming investments based on assurances of long-term bauxite availability and price stability.
- •The company is reviewing the High Court's decision and will evaluate available legal options and further steps.
Key Questions Answered
The Odisha High Court dismissed Vedanta Aluminium's petition because the company sought to reinstate or enforce old bauxite agreements that were terminated back in September 2015, a decision that the company failed to challenge at the time and which had long since become final.
Vedanta demanded the restoration of the old pricing mechanism for bauxite received from the Odisha Mining Corporation, which was linked to the cost of production and a 50 percent royalty based on old agreements rather than the 2018 Long Term Linkage Policy or the 2019 rules.
Following the dismissal of its petition, Vedanta Aluminium announced in a stock exchange disclosure that it is currently reviewing the High Court's decision to evaluate available legal options and determine its future legal strategy.
