Vedanta Aluminium to raise Rs10,000 crore for Orissa project

06 June 2009

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.