London based Vedanta Resources Plc has formed a SPV – Lanjigarh Project Area Development Foundation – to take up peripheral development works around Niyamgiri bauxite mines in Kalahaindi and Rayagada districts of Orissa.
Vedanta through its subsidiary Sterlite Industries has 49 per cent stake in the SPV, while the Orissa Government and Orissa Mining Corporation (OMC) have 26 and 25 per cent, respectively.
The SPV had decided to take up programmes of solar electrification, development of infrastructure for education, health and communication in the peripheral area spreading over two districts at a cost of Rs 17.70 crore.
According to sources, the state government is taking steps for granting bauxite mining lease over an area of 721.323 ha in Niyamgiri hills of Kalahandi and Rayagada districts to OMC, which, in turn, is likely to form a JV company with Sterlite for operation of the mines. The JVC is expected to sell the bauxite to Vedanta’s plant at Lanjigarh.