South Africa in talks with Vedanta Resources for power plant JV

NEW DELHI: South Africa has initiated talks with Vedanta Resources for setting up a power plant jointly with a state-run firm, though it is yet to decide if majority stake would be given to the Anil Agarwal-led firm.

"What we want, on the back of Vedanta's experiences and skills and expertise, is to develop power resources. We are trying to see that government investment companies can work with Vedanta to look into power generation," South Africa's Deputy Minister for Mineral Resources Godfrey Oliphant told PTI in an interview.

The Minister, who was in India recently to take a first- hand look at various establishments of Vedanta, said South Africa was looking to forge a joint venture pact with Vedanta Resources, but he declined to divulge more as "there are other issues which we can't say to public until we discuss them."

"The state investment/public investment company, which invests in a whole range of issues, is entitled to some partnership with other companies. Their focus is on energy. So at this stage, in terms of what percentage and what should be the method are uncertain," Oliphant said.

When asked if the South Africa government would offer a majority stake to Vedanta Resources in the proposed joint venture, he said, "It is pre-mature to say that."

However, he said there might be incentives that could go to Vedanta but "it's premature to pronounce it at this point of time."

The minister said South Africa follows two models - one for captive power and other for independent power producers (IPPs). It allows an IPP to use and sell some power though do neither make it mandatory to sell a certain quantity nor the price and others.

Oliphant said these issues would be decided through negotiations as government was looking into other variables before a conclusion was arrived at.

The metal, mining, oil and gas conglomerate has already presence in the oil and gas and zinc sectors in South Africa.