New Delhi: Mining giant Vedanta Ltd, headquartered in Delhi, owned and controlled by billionaire Anil Agarwal, is currently trying to trade its Rs 4,500-worth copper plant in Tamil Nadu. A year ago, the mining firm had invited Expressions of Interest (Eols) for the same unit.
Despite inviting applications, the firm did not receive any appropriate response due to the fact that the plant was closed for the last five years.
A report by the Business Standard stated that bankers are once again reaching out to potential bidders to close the deal.
Why did the plant shut down?
Vedanta’s Tamil Nadu-based copper plant was halted on the orders of the Tamil Nadu Pollution Control Board (TNPCB). After which, Vedanta knocked doors of the Supreme Court challenging the closure decision. The final verdict is likely to be declared by August.
Applications for Expressions of Interest (Eols) began on June 12 by the firm to commence activities after the apex court’s direction.
Moving ahead, the report also stated that Vedanta Resources (VRL), which is the parent company of Vedanta Limited intends to raise funds to repay its debt. The collected funds will be used to fulfil its capital expenditure worth $1.7 billion for 2023.
Vedanta Resouces is still left to repay the debt of $ 2.2 billion in the current financial year. As per sources, the company is trying out different methods such as brand monetisation, refinancing, and transfer of general reserves to retained earnings so that it can complete its repayments within deadlines.
Vedanta’s total debt repayment for the financial year 2023 totalled $4.3 billion, out of which the firm paid $2 billion during the first quarter of the financial year 2023.
