Vedanta Aluminium's president Mukesh Kumar, outlined the company's intention to close the refinery on a temporary basis earlier this month.
The Odisha refinery requires 10kt of bauxite daily to produce 1Mt/yr of alumina, but the Odisha state government, having promised to supply the plant with 150Mt of bauxite, hasn't handed over a bean, despite Vedanta applying for 26 bauxite reserves in the state.
Ironically, Odisha is the perfect place to set up an alumina refinery as it holds reserves of 800Mt of bauxite. Oddly, however, none of it is available for Vedanta.
For the people of Koraput district, the likely closure of the plant is bad news as it will mean job losses, both directly and indirectly, in the region of 10,000.
Members of the plant's workforce have urged Kalahandi MP Bhakta Charan Das to save the refinery.
A Save Vedanta Movement has been formed and there have been demonstrations by local people eager for the plant to remain open.
The Lanjigarh refinery has been kept alive by bauxite supplies from Jharkhand, Chhattishgarh, Madhya Prades, Gujarat and Andra Pradesh but, according to Kumar, supplies from these regions are no longer possible due to regulatory issues.
The plant is currently running at 50% capacity.