Reuters reported that Vedanta Aluminium Ltd is considering layoffs within two months at its alumina refinery in Odisha as hopes of an immediate revival of the plant fade.

Mr Mukesh Kumar president of VAL told Reuters that "We don't know how long this crisis will continue. We don't have any other choice left but to retrench staff."

Mr Kumar said that "It could be 10 or 100 by January-February depending on the situation."

About 75 employees, including engineers and executives, have already left the refinery, at Lanjigarh in Kalahandi district, about 450 kilometres from state capital Bhubaneswar, in the past three months, while many more are scouting for opportunities.

VAL, a unit of London-listed Vedanta Resources has about 550 employees. It closed down the 1 million tonne per year refinery exactly two weeks ago due to a shortage of bauxite after a supply arrangement with a state agency to source from the nearby Niyamgiri hills ran afoul with the federal environment and forest ministry and got mired in litigation.