Companies

Vedanta to invest $8 bn in 3 years

Our Bureau Mumbai | Updated on August 25, 2018

Vedanta is establishing a global centre for technical excellence.   -  REUTERS

Will boost production of aluminium, zinc, lead and crude oil

Anil Agarwal-owned Vedanta plans to invest $8 billion (about ₹56,000 crore) to increase the production of aluminium, zinc, lead and crude oil over the next three years.

Addressing shareholders at the company’s annual general meeting on Friday, Vedanta Chairman, Navin Agarwal, said India currently spends $125 billion on oil imports, which accounts for 80 per cent of its oil needs. As the country's largest private sector oil producer, Vedanta contributed 27 per cent to the domestic production and aspires to take it up to 50 per cent, he added. Towards this end, he said Vedanta will invest $3-4 billion over the next 2-3 years, in various projects.

Policy changes

Agarwal said there is an urgent need to bring further changes in policies for the natural resources sector, particularly the implementation of the New Mineral Policy, and to ensure a level playing field in terms of imports and duties. Encouraging the exploration and production of natural resources will lead to greater self-reliance, save billions of dollars in imports, generate immense employment opportunities, he added.

Vedanta is the world's second largest integrated zinc-lead producer and the only primary silver producer in India.

"We are also the largest aluminium producer in the country. This year, we had a record production at our zinc-lead-silver and aluminium businesses. We will be further investing $3-4 billion in these businesses in the next 2-3 years," Agarwal said.

Centre for tech excellence

The company also said it plans to establish a global centre for technical excellence.

Vedanta's free cash flow stood at ₹7,900 crore and gross debt came down by ₹8,500 crore. With a contribution of over ₹33,000 crore to the Indian exchequer, the company is among the top two corporate contributors in India Inc.

Published on August 24, 2018

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