The beleaguered mineral company, Vedanta Resources has said that the Orissa state government will consider of making alternative arrangement for its bauxite requirement.

The situation arose after the Center refused to grant permission to the project of Vedanta sighting environmental reasons for the refusal.

In a press release Vedanta has refuted all the allegations made by Centre and has said that it is not into possession of any mining activity in Niyamgiri and that no anti-environment activity has taken place there.

It also clarifies in the release that Ministry of Environment and Forests has refused final approval to the Orissa Mining Corporation (OMC), and not Vedanta Aluminums' proposal for bauxite mining.

Vendanta had signed a memorandum of understanding (MoU) with the Orissa government way back in 2004 for setting up an integrated alumina and aluminium complex in the state. It had also said that it would start a captive power plant. As per the deal, 150 million tons of bauxite was to be given to the company. Out of this, 78 million tons was to come from the Niyamgiri mines.

But since then there have been various agitation by the local tribe which later on became a political issue.