Srikanta Tripathy
THE TIMES OF INDIA
Jaipur Edition – 10th 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.
