Bhubaneswar: Senior Congress leader Srikant Jena on Monday flayed the Odisha government's recent decision to give long-term bauxite ore linkage to aluminium major Vedanta Group.

"The decision is detrimental to the state's interest as the state exchequer may lose around Rs 10,000 crore over the next 10 years," said Jena, threatening that his party would launch a state-wide agitation if the government did not withdraw the decision.

On February 21, the state government decided to provide long-term bauxite ore linkage to the aluminium industries, especially the Vedanta Group, which has a one-million-tonne alumina refinery at Lanjigarh.

"When the entire state was busy with Bijepur bypoll, the Naveen Patnaik government took the decision silently," said Jena.

He said the state government had decided to supply bauxite ore to Vedanta from the state-run Odisha Mining Corporation's Kodingamali mines. Besides, it has also decided to de-reserve part of Karlapat mines and auction.

"But, the corporation could have set up its own alumina refinery instead of supplying bauxite ore to Vedanta. By this, the state could have earned revenue, which could have fulfil its financial requirements," said Jena.

Jena said: "Actually, Vedanta will dictate terms in fixing the floor price as it virtually does not have any competitor in auction process."

Pointing out that Vedanta chairman Anil Agrawal said at Davos about a month ago that his company had two bauxite mines in hand in Odisha, he said: "This proves that the BJD is acting according to the Vedanta diktat."

Jena said that while the Naveen government had decided to give long-term linkage to Vedanta, the Modi government had accorded environment clearance for the bauxite mining and exploration.