'Operated with objective of import substitution to up production in sustainable manner': Vedanta on OCCRP claims

Mining-to-oil conglomerate Vedanta Resources, controlled by Anil Agarwal, on Thursday denied that it has flouted green rules set by the government. In a clarification to CNBC-TV 18, the company said it operated with objective of import substitution to up production in a sustainable manner. 

It further said that it made representation to the government in the best interest of national development.

The Organised Crime and Corruption Reporting Project (OCCRP) on Thursday claimed that Vedanta Resources Limited conducted a "covert" lobbying effort during the Covid-19 pandemic to weaken environmental regulations in India.

"Vedanta Limited is one of the leading natural resources organizations in India. We operate with an objective of import substitution by enhancing domestic production in a sustainable manner. In view of the same, continuous representations are submitted for consideration to the Government in the best interest of national development and India's march towards self-reliance in natural resources," said Vedanta Spokesperson.

The OCCRP report said in January 2021, Agarwal, Chairman of Vedanta Group, approached former environment minister Prakash Javadekar that mining companies could enhance production by up to 50 per cent without requiring new environmental clearances, potentially boosting India's economic recovery.

The report further stated that Vedanta's oil arm, Cairn India, successfully influenced the elimination of public hearings for exploratory drilling in government-auctioned oil blocks. "Since then, six of Cairn’s controversial oil projects in Rajasthan have been approved despite local opposition," said the report.

Responding to OCCRP, Vedanta said as "one of the leading natural resources organizations in India" the company operated "with an objective of import substitution by enhancing domestic production in a sustainable manner."

"In view of the same, continuous representations are submitted for consideration to the Government in the best interest of national development and India's march towards self-reliance in natural resources," a company spokesperson told OCCRP.

The OCCRP report claimed: "Though the head of a major industry lobby group and India’s mining secretary also pressed for the rules to be loosened, internal documents and government sources suggest Vedanta’s lobbying was key. The environment ministry then changed the regulations by publishing an office memo — meant to be used for inter-office communication — on its website." 

"The records — ranging from internal memos and the minutes of closed-door meetings to letters like the one from Agarwal — show government officials tailored the rules in line with requests made by the industry, and in particular Vedanta," it added.

The investigative platform also alleges Vedanta of lobbying to scrap public hearings for oil exploration projects for its subsidiaries Cairn Oil & Gas. "As with mining, the government quietly amended the law with no public consultation. Since then, at least six of Cairn’s oil projects in the northern deserts of Rajasthan have been greenlit for development," the report added.

"The six blocks in Rajasthan are among dozens where Vedanta bought extraction rights in government auctions. OCCRP’s analysis of official data shows Vedanta was the top benefactor of a recent government push to boost domestic oil exploration, scooping up 62 of the 220 blocks put up for sale across the country between 2018 and 2022," it further added.

Shares of Vedanta are currently trading at a price of Rs 234.85. The stock has experienced a 1.09 per cent change on Friday.

Meanwhile, Vedanta Resources said it has started an exercise to identify its dollar bondholders, as the miner prepares to repay about $2 billion of notes next year, a record annual amount for the company. 

“We have commissioned a bondholder identification exercise for a better understanding of our holders,” Vedanta told Bloomberg News. “This will allow us to possibly conduct relevant meetings and interactions with our identified set of bondholders,” it added.

Vedanta has engaged a corporate advisory firm Morrow Sodali to identify owners of notes that mature in January 2024, August 2024 and March 2025, Bloomberg News reported.

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