VEDANTA SAKHI - TIMES OF INDIA - `VEDANTA HAS BIG INVESTMENT PLANS IN RAJ'

Srikanta Tripathy

THE TIMES OF INDIA

Jaipur Edition – 10^th January 2015

CHAIRMAN ANIL AGARWAL SAYS GROUP MAY CONSIDER SETTING UP A FERTILISER PLANT IN STATE

With trophy assets like Cairn India and Hindustan Zinc located in Rajasthan, the engagement of Vedanta Resources has grown deeper with the state, which is considered the mineral museum of the country. Chairman of the London listed company Anil Agarwal who visited the city on Thursday told TOI in an interview that the group has big investment plans in Rajasthan.

The draft new mining policy has proposed to open up the sector to private players and group is keen to look at the new opportunities.

“We are very excited to look at the opportunities. The group has big investment plans in Rajasthan. We will also look at the feasibility of a fertilizer plant in the state,” said Agarwal. INTERVIEW: P 12 Vedanta Resources chairman Anil Agarwal may have grown up in Patna, but the group's trophy assets like Cairn India and Hindustan Zinc have reconnected him with his roots in Rajasthan, where his grandfather hailed from. The union is complete but he wants to make it deeper .In an interview to TOI, Agarwal said Rajasthan has the biggest potential in India and the state can be a hub for natural resources in the country like Punjab became the food granary of India. He said the group has big investment plans in the state and the government's new mining policy that outlines a larger role for private sector could give wings to his plans. Cairn India and Hindustan Zinc collectively pay an annual royalty of Rs 7,000 crore to the state, but he likes to call himself as the brand ambassador of the state to the world. Excerpts...

The new government at the Centre seems to have instilled a belief that it is keen to undertake radical reforms. How the outside world perceives it?

The world media is agog about India and Prime Minister Narendra Modi. The India story is generating lot of interest among the business community outside the country .

Is that optimism enough to put the country back on the path of high growth and development?

This is a defining moment in our history . India needs global interest to chart a course like China did. During the past 15 years, China attracted FDI up to $125 billion, year after year. India is getting only about $22 billion. Today, the US multinationals are sitting on a cash pile of $3-4 trillion from their overseas operations which they won't take home because that attracts tax. They want to park the money outside and India can become a big beneficiary of that booty . Nothing could be a better time than this for attracting those companies that have changed the economic landscape of countries like China.

The government is betting big on `Make in India' or `Find in India' to boost manufacturing, reduce reliance on imports and drive job creation. How do you see it?

When a large manufacturing unit is set up, thousands of industrial units flourish around it. I have seen such transformations happen in the steel cities of Bokaro and Bhilai. They have created millions of jobs and that's what we need now. Manufacturing needs raw material and India cannot afford to run an import bill of about $500 billion. That tide has to be turned. We must find oil, gas, gold, fertilizer, iron ore, copper and bauxite domestically. Reversing that trend will also create millions of job opportunities.

The industry cites the arduous process of getting environment approvals as reasons for projects getting delayed or stuck. What is the solution?

The government can set very high standards for protection of environment but the policy should adopt a self-declaration mechanism. If anyone found violating the norms, they should be heavily penalized. This is the practice world over. That will save the industry from bureaucratic red-tape. Secondly, we didn't have the sophisticated, sustainable mining technologies and processes 50 years ago, but we have it today . Like a microscopic surgery on a human body , we exactly know what to take out and how to do that without affecting other parts of the body .

Rajasthan is considered a museum of minerals. But the sector still remains closed to private sector. The new mining policy set to overhaul that. What is the potential of the sector?

Like Punjab became the food granary of the country , Rajasthan can become a hub for natural resources. The state can take care of eradicating poverty in India. But we have to do exploration. It has oil and gas, huge gold reserves, rock phosphate, potash, lignite, and the best marbles stones in the world. What the world is looking at is how simple and transparent the policies are.

What would you like to see in the mining policy?

I believe the chief minister is very pragmatic, and hungry to take this state forward. An auction process would be the right way to bring in transparency.

The state under her leadership has already ushered in path-breaking reforms that were neglected for decades. I am pretty optimistic that the mining policy will also reflect that vision. The state is set to open up minerals like rock phosphate and potash. Will you participate if these mines are offered through auctions?

We will look at the terms and conditions. We are a huge company , with an international base. We are brand ambassadors for India and also for Rajasthan. Nobody can do better advocacy for Ra jasthan than Anil Agarwal and the company can do. But I would also like to see other people come in. For me it's very important to create a market in Rajasthan. But the big investors should not be made to face bureaucratic hurdles.

Will you look at putting up a fertilizer plant in Rajasthan if you bag rock phosphate mines?

We are very excited to look at the opportunities. The group has big investment plans in Rajasthan. We will also look at the feasibility of a fertilizer plant in the state. Rajasthan has the biggest potential in India and Vedanta would be a significant partner in the state's growth and development. Today , we are using different kinds of urea which is bad for soil. The best natural product is potash. The only place in India, I believe, potash is available is in Rajasthan. This is also true for rock phosphate. And importantly, much of rock phosphate is imported. We can meet the domestic demand if mining is allowed.

The lease period for the Barmer oil blocks expires in 2020? Do you see any hiccups or arm-twisting by the Centre for an extension? Is it affecting your investment pipeline?

All over the world, lease is for the life time of a mine. We have invested Rs 10,000 crore this year alone in Barmer on exploration, new technologies like vertical drilling, and enhanced oil recovery process. Industry and the government have to be on one side of the table. Otherwise the country won't move anywhere. I am son of the soil and part of the government's vision. I am sure the decision will be taken in the interest of the country .

Under your Sakhi initiative you have empowered 6000 rural women. You have also spent lot of energy and resources on Khushi initiative. What is next area for CSR activities?

Under the Sakhi initiative we have reached out to 6,000 rural women and the number will grow. We have not only given them the seed money and skills but also self- confidence. A woman who was earning nothing is now earning Rs 30,000. We are also supporting our Prime Minister's Swachh Bharat initiative in a big way by constructing 10,000 toilets out of the 30,000 planned Our next initiative will focus on 20 lakh Anganwadi centres in the country providing each centre with toilets, solar panels, TV sets and hand pumps. We are in talks with the women and child development minister Maneka Gandhi. The initiative will start from Rajasthan this year after we sign an agreement with the government.