Vedanta to invest $9bn in India

London-based Vedanta Resources Plc will invest roughly $9 billion in India over the next few years to expand its hydrocarbons, metals and mining businesses and meet more of India’s requirements of these commodities locally.

Anil Agarwal, founder and chairman, Vedanta Resources Plc, said: “We are planning to invest $2.5 billion in oil and gas to step up our production to half of India’s crude oil output (from 26 per cent in 2016-17).

“The other proposed investments in India include $1.5-2 billion in the aluminium sector, $2 billion in bauxite mining, $1.5 billion in zinc and $1.5 billion in iron ore mining and steel. Additionally, a part of Vedanta’s proposed $1.5 billion investments in copper will flow into India.“Directly and indirectly, these investments will create over a million jobs,” he added.The company is also looking at investing Rs 4,000 crore ($615 million) in Jharkhand to set up a 1 million tonne per annum plant producing pellets, pig iron and pipes. This plant is expected to create around 5,000 jobs.

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At the stroke of the midnight hour on the intervening night of June 30 and July 1, while the world slept, much of India was wide awake, watching President Pranab Mukherjee and Prime Minister Narendra Modi formally launch the much awaited Goods and Services Tax (GST).

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As we enter the year 2017 and review the global economic outlook, we see a horizon that is quite challenging. Global economic growth is still weak. Strategic and economic relations among major countries are undergoing a change. Global trade architecture is in for a makeover, with priorities being redefined by countries.

India needs $1 trillion in investments over the next five years to upgrade its creaking infrastructure to global standards but a combination of unfavourable market conditions, weak commodity prices, inability of Indian banks to lend large sums of money, poor raw material linkages and lack of urgency at the level of state governments have conspired to make the task even more difficult than it otherwise would have been.