Protect Indian industry from imports: Anil Agarwal

DAVOS: Anil Agarwal, chairman of Vedanta Resources, has called upon the government to do everything to protect Indian industry from the ravages of indiscriminate foreign imports and help revive stalled manufacturing projects.

In an impassioned plea to Prime Minister Narendra Modi and finance minister Arun Jaitley ahead of the budget, Agarwal said manufacturing has a multiplier effect on GDP and growth.

"Investments made cannot be allowed to suffer. We can’t keep them idle. The government should ensure that existing businesses are not on crutches and they don’t start bleeding," he told ET in Davos.

Vedanta has been forced to curtail aluminium production due to lack of bauxite availability and its iron ore business in Goa has been hurt by government-imposed export duty. Vedanta has also been unable to exercise its option to buy the residual government-held stakes in two companies --Hindustan Zinc and aluminium producer Balco --due to various hurdles. The Supreme Court restrained the sale of shares in Hindustan Zinc to Vedanta earlier this week until it had heard a case challenging the move.

Agarwal expressed his frustration and unhappiness over the state of affairs, echoing the sentiments of other industrialists disappointed by the slow pace of prog ress and reforms. Clearances for stalled projects aren’t fast enough and issues related to land acquisition, raw material availability are yet to be resolved, they said.

Agarwal said job creation and GDP will grow faster if domestic manufacturing industry is protected from the effects of indiscriminate dumping. He praised Modi and Jaitley for having the right intentions and showing direction but officials needed to hasten delivery, he suggested.

Bureaucracy, he said, must work without fear. "They should be like the military who guard our border without fear for the consequences. It is a mindset issue. Fear should not be allowed to rule," he added.

Vedanta’s problems have been compounded by the global collapse in commodity prices resulting in lower margins and increased competition from cheap imports. Agarwal said a vast quantity of aluminium is being imported into India and that’s hurting the country’s chances of becoming a major producer of the metal.

Agarwal said there should be a sense of urgency in resolving some of the country’s complex problems and stressed that bureaucrats should take the initiative. "Today, it is very important that Prime Minister Narendra Modi calls all industrialists and says ‘I am behind you, go ahead and invest.’ Industry needs that support and recognition."