Vedanta shareholders approve hiking inter-corporate loan limit

NEW DELHI: Mining conglomerate Vedanta today said its shareholders have approved the proposal to raise its limit of inter-corporate loans to Rs 80,000 crore.

The firm led by billionaire Anil Agrawal had called for a postal ballot to seek approval from the shareholders.

"The special resolution as proposed in the postal ballot notice dated April 28, 2016 is passed with requisite majority," it said in a regulatory filing.

The metals major was seeking approval to raise the limit of inter-corporate loans, investments and guarantees and security in connection with loans from Rs 60,000 crore to Rs 80,000 crore.

Explaining the rationale, it said: "The company being the flagship and holding company for various subsidiaries/ Wholly Owned Subsidiaries and associate companies, extends financial support in the form of investments, loans and guarantees/ security to various group companies and also in other entities from time to time as per decision of the Board."

Vedanta's shareholders had through postal ballot approved a limit of Rs 60,000 crore for making loans, investments, guarantees and security in October 2014.