"In the month of October, capacity utilisation had gone up to 65% and we expect full capacity production from December," VAL managing director S K Roongta said.

The installed capacity of refinery at Lanjigarh (Odisha) is one million tonne. The plant was closed for around seven months from 5th December 2012 due to lack of bauxite.

Roongta said this (increase in refinery production) would be done even with costly imports. With increase in production, the bauxite requirement would increase to three million tonnes, he said.

The company currently meets its bauxite requirement equally from its group company Balco, buying from merchant mines of other states and imports.

VAL had earlier said it would increase its smelter production capacity at Jharsugda to 2.3 million tonnes over the next three years.

Due to resistance from local tribals, the proposed bauxite sourcing is yet to commence from Niamgiri mines, depending on which the group had invested in the aluminium sector in the state.

The company was also trying to convince Nalco to supply alumina meant for export to its plant, to which the PSU has not agreed upon so far.