CHAIRMAN'S VISIT TO YPO, JAIPUR AND HZL, UDAIPUR

Chairman, Vedanta Group - Mr. Anil Agarwal was in Jaipur to address the YPO members (Young Presidents’ Organization) on 8th December 2017. 

He also visited Udaipur and interacted with over 60 employees including senior management of Hindustan Zinc in a workshop on 9th December 2017.

It was a memorable day filled with energy, enthusiasm and inspired all the employees.

He also met the special children of Jeevan Tarang.

BUSINESS STANDARD: ADDING VALUE TO INDIA'S DEMOGRAPHIC WEALTH

Anil Agarwal  I  10th June, 2017

It is said that age is just a number, and that this number will be an advantage for India in years to come as it inches closer to becoming the youngest country in the world, and perhaps the most populous.
With women accounting for just 23 per cent of the workforce in India today as compared to China's 46 per cent, we need to look beyond the current paradigm of job seekers and job creators. Demography and economy must go hand in hand, and considering how diverse India is, our economy needs its people to fuel growth. I am confident that Prime Minister Narendra Modi has already sensed this as it is aligned with his vision for launching “Skill India".
Our ultimate objective is to eradicate poverty and create employment for youth and this requires some visionary thinking. The government is already shifting focus to the growth of manufacturing industry. If we compare our economy to that of our neighbours, China for instance, as of 2015, the manufacturing industrial sectors contributed 40 per cent of China's GDP, while in India this contribution is just 25 per cent.
India is blessed with a very rich geology, and I strongly believe that India's journey to self-sufficiency in the natural resources sector, including oil and gas, has the capacity to create millions of job opportunities, which will overcome some of the greatest impediments to growth on the socio-economic and political front. We have a large amount of headroom, as mining accounts for only 2.5 per cent of India's gross domestic product, whereas in other mineral-rich countries such as Australia, it is around 10 per cent.
This process will also encourage the development of thousands of SMEs, which will lead to the building of a modern economy that will empower people and improve their lives, ultimately fuelling growth and encouraging young entrepreneurs. Efforts must also be made to ensure empowerment of women, so that they are placed in the forefront to contribute more actively towards the country's GDP.
Across the globe, educating and empowering women has proven time and again to be the catalyst for rapid socio-economic and political growth. Women form a very significant part our society and demonstrate great skill, intelligence, hard work and innovation. If we harness the potential of these attributes through a proper skill development programme, India's growth will be very equitable and inclusive.
In order to secure the future of India, we have to safeguard the present. I pledge to give 75 per cent of my wealth for the social good. To strengthen the foundation of children below the age of seven years  their nutrition, health and education  I am prepared to spearhead this responsibility in association with the government in a very structured manner. This includes nurturing 7.5 crore underprivileged children living in remote rural areas, below the age of seven years, who are in need of proper nutrition, health care and education. Our primary focus, therefore, is to start at the grass root level with the holistic development of children and women, who form the future of our nation.
It is with these objectives that we have reimagined the concept of Anganwadis, as project “Nand Ghar" (symbolising the child avatar of Lord Krishna), or “home for young ones" as centres of learning for both women and children. The project, which addresses issues relating to pre-primary education, health care, nutrition for children and economic empowerment for women in rural India, has been designed in partnership with the ministry of women and child development. These Nand Ghars have clean toilets, safe drinking water and electricity through solar panels and various education and recreation facilities.
Today, our pilot of 100 Nand Ghars across three states has shown a marked improvement in attendance, learning abilities and school readiness, by deploying e-learning modules in education and soft skills in collaboration with world-class partners. To make the model integrated, we are ensuring that the women undergo entrepreneurship training, including skill enhancement, to start their own micro enterprise with credit linkages, thereby increasing their contribution towards the Indian economy.
Nand Ghars will prove to be a stepping stone for future human capital that would be value-based, productive, passionate, and full of energy and ideas. With this upbringing, these children will contribute positively towards society and live a dignified life in future.
I firmly believe that strong social initiatives will be a game changer in terms of delivering long-term benefits to communities, and will place India at the top in the global economic arena. It is always better to bring change in the system if it simplifies procedures and brings the desired results. By incorporating facilities to empower women and children we aim to add value to India's unmatched demographic wealth. 

ECONOMIC TIMES: THREE YEARS MORNING SHOWS THE DAY

By Anil Agarwal I May 27, 2017

Demonetisation was announced on November 8, 2016. That one night changed the fortunes of many and brought good luck to many others. History was created. Some slept peacefully while others could not sleep at all. But one thing was certain: whether it was an individual or a company, an honest taxpayer had no worries.
Vedanta was among one of the many companies that stayed grounded during demonetisation. There had been no cash transactions for several years in the group companies. More than 80,000 people, directly or indirectly attached with Vedanta as employees or contract employees, stood fearless. Their faith in the Indian economy was reinstated.
Equally commending is the implementation of the goods and services tax). The uniformity in the stabilisation of the economy will bring a unique balance of trade within the country. The simpler — and the more unified — the tax structure, the better it is for the economy in the long run.
The transformation of the Indian economy was taking place by simultaneous monetisation and demonetisation. Many felt proud belonging to this new India, this modern India, a monetised India with its potential to Make in India.
Many projects like Digital India, Make in India and Swachh Bharat launched by the government are not just names coined to fulfil the needs and aspirations of people. The projects are also bringing hope, providing opportunities for many more new industries to open up and create millions of employment opportunities and help towards eradication of poverty.
Make in India has opened up new business models, the startups that want to get a taste of this dynamic new economy. Innovations have started and companies are importing global technology. For once, the world is seeing India with a new vision and a nation that can revive global economy.
If we do not initiate Make in India now, we will always remain an economy of imports. What the country would earn would only be utilised towards footing the import bill. Moreover, it would never bring prosperity in any capacity, as there would be no new jobs due to lack of new industries.
Like everyone, I too have a dream. I hope to make India the world’s largest zinc, aluminium and iron ore producer in the world. I hope to further maximum production of oil and gas for India so we can reduce our import bill. I also want to make the country self-sufficient in gold, fertiliser and technology.

Prime Minister Narendra Modi recently stated that the development of natural resources can be a game-changer for creating employment for millions. It’s a matter of time before our natural resources are sustainably developed to strengthen the economy and create millions of jobs to eradicate poverty, particularly in rural India.

FINANCIAL EXPRESS: REGULATORY FRAMEWORK: VEDANTA RESOURCES’ ANIL AGARWAL SAYS ‘CREATE AN UMBRELLA MINISTRY FOR NATURAL RESOURCES’

By Anil Agarwal I Published: May 15, 2017

Vedanta fully endorses the vision of Hon’ble Prime Minister of India Shri Narendra Modi Ji on utilization of immense human capital clubbed with natural resources of India for creation of millions of employment opportunities in India and making India a USD 5 trillion economy in the next few years.  A recent Morgan Stanley report also stated that with government policies and massive disruptive workforce Indian economy is well placed to reach USD 5 trillion mark by 2025.

The United States of the early to mid- 1900's has some striking parallels with the India of today. It was around this time that America began its journey towards becoming the world’s largest economy.

The biggest factors that propelled the growth and transformation of the US were technology, natural resources, manufacturing and private enterprise; a few men who dreamt big helped create the modern America. Andrew Carnegie, John Rockefeller, Cornelius Vanderbilt, J P Morgan and Henry Ford with their entrepreneurial spirit and innovative approach built businesses that helped make the transition to the modern industrial era. They laid the foundations of the American steel industry, oil and gas, natural resources and mining, manufacturing, finance and infrastructure building including roads, rail and ports.

America’s growth journey has some lessons for India. Both are large vibrant democracies with abundant natural resources. While America benefited from a large flow of immigrants in search of the American dream, India has a large population in the working age group. More importantly, like the US, India has people with entrepreneurial spirit who can visualize a new India and unleash its potential.

India is a country with one of the largest reserves of natural resources in the world, the transformational potential of India’s resources sector is immense. Over $1-Trillion treasure is waiting to be explored in India. An open and simple exploration policy for extraction of natural resources will make India an economic powerhouse that will have the potential to create millions of employment and eradicate poverty.

India’s current underutilization of resources tells almost an unbelievable story. Despite having a similar geology to North America, Latin America, Australia and South Africa, we produce only 20% of our natural resource requirements. The mineral exploration industry in countries such as Canada spends over $2 billion per annum in green-field exploration, whereas India spends less than $50 million. 

The scope is immense since Indian almost imports 100% oil, gold, fertilizers and even electronics.  

What surprises is the bauxite mining in India, a raw material used to make aluminium. In spite of rich reserves of over 3.5 billion tonnes, that can make India the top 5 aluminium producers in the world, India is not able to mine bauxite for the last over 35 years. India has failed to tap the large aluminium market, widely known as a green metal, and lost out to countries like China that fully imports the raw material. Even with 3.5 billion tonnes of bauxite, which is the third largest reserve of bauxite in the world, India only manages an annual production less than 2 million tonnes of aluminium. In contrast, China that has no reserves of bauxite but produces about 20 million tonnes of aluminium annually.

The story is similar in the case of iron ore. Given our reserve level, we are in a position to produce quantities matching Brazil’s and Australia’s, which produce in the range of 600 million tonnes per annum. Against this, we have so far been producing a modest quantity of over 100 million tonnes on yearly basis that also stands drastically reduced due to cap on production.

Narendra Modi Ji transparency can prove to be a milestone in the history of job creation through utilization of natural resources as this is a sector that has the potential to create employment not just in urban sector but also in rural part of the country. This is a sector that needs young engineers, chartered accountants, management graduates, geologists, community service professionals, and also unskilled manpower that is sourced almost 100% from nearby villages.

What is needed is a simple policy that auctions natural resources in the most sustainable and transparent manner, on revenue sharing basis or highest royalty. It will also encourage young start-ups who are keen to develop ancillary industries to utilize the metals using best of global technology. The key to this simple revolution lies in a simpler regulatory framework, based on transparent policies and processes, emphasising self-declaration and strong deterrents and penalties for non-compliance.

We also need to simplify and unify our regulatory and approval process across the board by reducing at least 80% of our processes as well as clearance time. This can be done using technology, automation and simpler policies and rules. A simplified regulatory and approval process could be a good enabler to get the best out of our bureaucracy.

As a suggestion, to strengthen the country’s economy form a single large ministry to deal with development of all natural resources, bring oil & gas, mines, coal and steel under single umbrella and under a strong visionary leader. This new Ministry of Natural Resource would look into the optimum development of natural resources.

These are some of the factors that also enabled America to emerge as an economic powerhouse. India can follow suit as long as all stakeholders have the will and commitment.

The world is looking at India as the next destination after China. Some of the biggest advantages that India has are its vibrant democracy, a vigilant media and an excellent legal framework.

CHAIRMAN HONOURED BY BIHAR CHAMBERS IN PATNA - AWARD PRESENTED BY HON'BLE VICE PRESIDENT OF INDIA, GOVERNOR OF BIHAR, CHIEF MINISTER - BIHAR AND DEPUTY CHIEF MINISTER - BIHAR

Mr. Anil Agarwal - Chairman, HZL was honoured on 9th September, 2016 by Bihar Chambers of Commerce and Industries in Patna on the occasion of the celebrations of their 90^th Anniversary. Chairman received the honour from Hon’ble Vice President – Mr. Mohd. Hamid Ansari, Hon. Governor of Bihar - Mr. Ramnath Kovind, Hon. Chief Minister Bihar – Mr. Nitish Kumar and Hon. Deputy Chief Minister Bihar – Mr. Tejashwi Prasad Yadav.

The award was bestowed on him for making the State of Bihar proud by becoming an extremely successful industrialist. While speaking to the media, Chairman spoke about his days in Bihar and how through his passion, determination and hard work, he has achieved what he is today. 

CHAIRMAN VISITS HINDUSTAN ZINC: 28TH - 30TH APRIL, 2016

CHAIRMAN, VEDANTA GROUP VISITED JAIPUR ENGINEERING COLLEGE AND RESEARCH CENTRE, JAIPUR 18TH NOVEMBER, 2015

Shri Anil Agarwal - Chairman, Vedanta Group visited Jaipur Engineering College and Research Centre, Jaipur on 18^th November, 2015. During his visit, he addressed more than 1500 students and faculty members of the institute. While interacting with the students, he spoke about the utilisation of natural resources and its importance in improving the GDP, national income and export. He also gave his views on how to reduce the import bill and laid his emphasis on how crucial it is to eradicate poverty and generate employment for development of the country.

ET EXCLUSIVE Q&A - 'FOR MAKE IN INDIA, WE NEED MINE IN INDIA' - ANIL AGARWAL - CHAIRMAN, VEDANTA GROUP - November 18, 2015

Resources and infra are two areas where we need investment. We are dependent on imports, which amount to $600 b. In today's world, technology and capital is available. We need to simplify investment regime to get large investments

Anil Agarwal, Chairman of diversified resources major Vedanta Resources, still retains enough gumption to invest big in India, in spite of the searing slump in commodities and hurdles in getting regulatory approvals for mining. His Lanjigarh refinery in Odisha is working at a quarter of its production capacity and Chinese aluminium is killing the industry. However, he insists that his company is better-placed as it figures in the first quartile of production costs. He mentions a "few pinpricks", such as the delay in obtaining clearances and on retrospective taxes, and argues that “For Make in India, weneed to facilitate 'Find in India' and 'Mine in India'. In spite of the obstacles, his group is lining up . 20,500 crore of investments in Rajasthan in the next 3-5 years. Mr. Agarwal spoke to Ms. Rakhi Mazumdar and Mr. Satish John in a conference call from London, a day after he attended a meeting that top global CEOs had with Hon'ble Prime Minister Shri Narendra Modi during his visit to UK. Edited excerpts:

How did the meeting fare with the PM?

By and large Britain had done everything possible to welcome the PM. On both sides it was a huge delegation. It has been taken very well. While there were a few pinpricks like the retrospective tax, delay in getting clearances etc. they welcomed opening up of FDI in various sectors. The British PM, David Cameron, was around all the time while the PM was in London. India's reassurance on retro tax was well received. What is needed to boost FDI was also discussed. Vedanta has made the highest FDI in India -$30 billion in 10 years -while on India's side, the Tatas are the largest investor and employer in the UK.

You mentioned recently that the government should be nimbler and faster in decision-making. Can you elaborate?

Two things come to mind. We are a resource-based country. Resources and infrastructure are the two areas where we need investment. We are dependent on imports, which amount to around $600 billion. In today's world, technology and capital is available. We need to simplify our investment regime to get large investments.India needs 10 companies like Vedanta in resources, oil & gas, iron ore, gold, etc. The new MMDR Act is geared towards that. All we need is to have revenue sharing and a policy of self-certification with heavy penalty in case of any wrongdoing. We have to compare ourselves with China. We consume only 10% of what they do with a similar population size. That indicates the kind of growth potential that exists in India when we open up. For Make in India, we need to have `Find in India' and `Mine in India'. Mining is the biggest employer in the long term. Similarly, with the kind of infrastructure we have to build, there is huge employment generation that is possible. A country of 1.25 billion people needs to develop its own resources and infrastructure. Look at oil and gas. We do not have global majors like Shell, ExxonMobil, or a Total here. But they are present in Myanmar. While many buildings are coming up, we do not have proper sewerage, highways, roads, or enough electricity.Overall, we need to simplify things and also develop a sense of urgency to get things done.

How has the downturn in commodity markets impacted resource majors like the Vedanta Group? Can you share details about issues being faced in businesses like aluminium, zinc and oil & gas?

Prices have fallen in the downturn. However, we are in the first quartile of the cost of production curve. Also, we are in the process of reducing our cost of production further. We are India-based, where consumption is good; we have a balanced portfolio with aluminium, copper, zinc, iron ore and oil & gas.

I will go one by one. Aluminium is a natural product for India, given our large reserves of bauxite and coal. We should be able to be the lowest cost producer of aluminium. That can create jobs and remove poverty. We should focus on developing `semis' under Make in India since processing of aluminium can give rise to hundreds of industries. For example, around 500 kg of aluminium goes into each car, in components like die castings, radiators, etc. Aluminium can boost Make in India in a big way. We have a large 3 million tonne (mt) capacity in aluminium in India, which we are operating at 40% capacity now. We are looking at getting bauxite to raise capacity utilisation. In zinc and lead and silver, in which we are one of largest producers at Hindustan Zinc, we raised capacity more than 10-fold in the last 12-13 years from 1.5 lakh tonne. In Goa, iron ore mining resumed after a three-and-half-year shutdown. Two things are hurting us. Prices have fallen to such an extent. We also expect the government to abolish the 10% tax on exports of low-grade ore. The government should provide more room for exploration. A liberal exploration policy will also generate self-employment. We need ten times more than what we are doing today. In oil & gas, ONGC produces 6 lakh barrels, we produce 3 lakh barrels which we will enhance to 5 lakh barrels in both on shore and off shore at an investment of $10 billion.

When do you see commodity cycles changing course for a recovery in prices?

While in (case of) iron and oil, prices may come up by 15-20%. However, it is likely to remain at that level thereafter.

There have been very few greenfield projects that are coming up in India. Why are industrialists hesitating from investing in greenfield projects (like Lanjigarh)? What will give them confidence?

It is true that industry today has less courage for new sites. The interest rates are very high and that makes projects unviable. I don't know the answer. The trend is nobody has the mood or the zeal to start a new investment. After all, the existing one has to run healthily. However, it is a question of time. Large capacities have to come up in every sector, government has to get it either through public, private or investment by multinational companies. In iron ore, for instance, we have tremendous potential. We have the same geology as in Australia. While the latter developed its iron ore and survived on it, we produce only 100 mt whereas our capacity is to produce 600 mt.Once we get going, it won't take time to reach that volume. However, in India, royalty and taxes are amongst the highest in the world.

What is the status at Lanjigarh?

In Lanjigarh, our refinery is at the base of the bauxite reserve. We are operating it at 25% capacity. We are importing bauxite to run it, while we have given up our rights to the mine which is now owned by Odisha Mining Corp and the Odisha government. It has to be used sometime or the other. If it has to be used, we need the consent of the people. Hopefully, we will get it sooner or later.

The Vedanta Group has lined up 20,500 crore in fresh investments in the next 3-5 years in Rajasthan. Do you think it is the right time to invest there? You are also talking of investing in potash.

We have already invested in zinc and oil & gas business there. Apart from expanding our capacity in zinc and oil, we also hope to develop fertilisers since they have rock phosphate and we already produce sulphuric acid. The state has tremendous resource potential in oil & gas, rock phosphate, potash and marble. In marble, the potential is much more than even Italy which has large quarries employing 10,000 people who cut and polish the stone at same site. As part of Resurgent Rajasthan, the chief minister is calling on investors and has received good response. The Centre has allowed states to do the mineral auctions and it can be done for potash, limestone, marble and also gold of which it has good reserves. In case of potash, we need $4-5 billion investment since we import our entire requirement. The state will also benefit from a liberal exploration policy.

Will you enlist a technology partner for the fertiliser project?

We have not come to that stage yet. We have people who run these businesses and work for us from the likes of Rio Tinto, Anglo American, BHP and others, and can approach them in case we need to take on a technology partner.

How big a problem is dumping of aluminium?

Some 55% of aluminium coming into India is being dumped mainly by China. We need to have safeguard duty in place soon and increase the import duty to protect the domestic industry. In steel, 10% is being dumped and it already has a safeguard duty.

By when do you expect the Cairn-Vedanta merger to come through?

Some shareholders have called for a review. Our vision is to create a fully merged natural resources firm from India. We have moved in a transparent manner. The process is going on and if anything is required, the bankers will recommend it. It should take couple of months.