Vedanta Aluminium Ltd (VAL), a part of the Anil Agarwal-led Vedanta Group, is in talks with banks, including the State Bank of India (SBI), to raise Rs10,000 crore debt for part-funding its project in Orissa.
However, the company officials refuse to answer queries regarding the debt raising.
Sterlite Industries, the flagship company of the Vedanta Resources, owns 30 per cent stake in VAL, while 45 per cent is held by Vedanta Resources' investment arm Twin Star Holding, and the balance by Welter Trading.
VAL plans to enhance its alumina refinery capacity to five million tonnes per annum (mtpa) from the present 1.4 mtpa, while that of aluminium smelter to 1.75 mtpa from close to 0.7 mtpa.
Agarwal in March said that it is planning to pump in Rs70,000 crore in India by 2011-12 for its aluminium, zinc, iron ore and copper projects.
The company at that time said that it had cash surplus of Rs30,000 crore and funding will not be a problem.
"We intend to invest Rs50,000 crore in (the) aluminium sector and Rs20,000 crore in other areas like copper, iron ore and zinc by 2011-12 in India," Vedanta Resources chairman Anil Agarwal said. (See: Vedanta investing Rs70,000 crore for expansion in India).
Vedanta Resources' full year profit dropped 75 per cent in 200-09, hit by declining metal prices. Net income fell to $219.4 million (Rs1086 crore) from $879 million a year earlier.
''The current economic environment has resulted in depressed commodity prices and an uncertain demand outlook for our industry,'' chairman Anil Agarwal said in a statement.