“It will contribute to the creation of over five million jobs and will considerably reduce India’s import dependence for basic materials,” Agarwal said, addressing the company’s shareholders in the annual report released Thursday.
The new bill will significantly boost India’s metals and mining industry by inviting private participation in the exploration of key resources such as coal and gold, Agarwal added.
In March, Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2021, which proposes to remove curbs of end-use for future auctions of mineral mining rights, allowing operators of existing captive mines to sell up to 50% of minerals extracted in a year.
The new bill also gives powers to the central government to conduct an auction of mines if state governments do not conduct auctions in a timely manner.
Currently, the natural resources sector contributes 1.75% to India’s GDP, whereas in countries with similar reserves, the contribution is 7-7.5%.
During FY 21, Vedanta’s low-cost, scalable assets generated strong profitability and delivered robust cash flows, Agarwal said.
“We are actively deleveraging our balance sheet and are raising the bar in operational excellence across our wide canvas of operations,” he said. Even as temporary disruptions materialised, the company was able to bounce back strongly with robust EBITDA margins, he said.
Vedanta’s consolidated net profit during the Q1 of FY 22 more than tripled to Rs 5,282 crore. The company’s net sales were up 79.2% to Rs 28,105 crore.
During the last financial year, Vedanta has spent over Rs 331 crore on social development activities, spread across its core impact areas of education, health, sustainable livelihoods, women empowerment, sports and culture, environment and community development.
“Our flagship CSR initiative for women and children has touched a new milestone, with the setting up of 2,300+ Nand Ghars in 11 states,” Agarwal said.
In a move to reduce the group’s carbon footprint, Agarwal said that the company has set a vision to substantially de-carbonise its operations by 2050.
The company will focus on exploring investment opportunities in the upcoming financial year.
“At Vedanta, we are cognizant of the immense growth potential and will invest in opportunities that create value for all stakeholders. As we power ahead, we stand in solidarity with India, its ambition of being Aatmanirbhar and creating a 5 trillion-dollar economy,” Agarwal said.