Not a blade of grass has moved in Niyamgiri: Anil Agarwal

From the dingy bylanes of Patna’s Goriatoli and humble Miller High School to his office in London’s exclusive Mayfair district , Anil Agarwal’s journey covers the entire gamut of rags-to-riches stories. But more than his achievements, the billionaire boss of Vedanta Resources, a $2.8-billion global mines and minerals empire, these days makes more news for his latest moves catching the wrong end of the government’s stick. From the bauxite mining project in Orissa’s Niyamgiri Hills to a foray into oil by acquiring a controlling stake in Cairn India for $9.6 billion, Vedanta’s plans in India seem to be stalling. But that is a small price to pay for democracy and development, Agarwal, a staunch believer in the India Story, tells Sanjay Dutta over lunch at his Mumbai office.

Why is there so much negative news about Vedanta’s ventures, particularly over environmental issues pertaining to the Niyamgiri project?

It is wrong to say there is negative news. Orissa is a specific subject. People say that we are mining in Niyamgiri. I can tell you not a single blade of grass has moved there. I am buying bauxite for running the Kalahandi aluminium plant and will continue to do so till the issue is resolved. I am optimistic it will work out. Mr Rahul Gandhi himself said he was not against development . In a democracy, there are processes to be followed .If there are complaints , the government must look into them. It is doing just that and we must be patient. What happened in Niyamgiri is small, you have to look at India as a whole. In Tuticorin, the High Court took a view and we went to the Supreme Court. The matter is sub-judice and I cannot say much. But I can say it is a world-class facility and 50,000 people of Tuticorin are depending on it.

A perception is building that Vedanta is a carpetbagger and does not care about local people.It is wrong to say we are against tribals. We are also for tribals. When we decided on Kalahandi aluminium plant, the place was inaccessible . We built 13 bridges, an airport, power plant. Aluminium is a green metal, basic requirement for growth. We have built up capacity, which promotes factories down the line for fabricating doors and window frames, automotive body to utensils. That means jobs and growth.

What made you look at oil?

I grew up listening to announcements on radio that we will become self-sufficient in oil. There would be a target, which would always be extended . Even today, we produce only 25% of our needs. I don’t believe there is hardly any oil (or gas) to be found in India. It’s like if you keep saying you are poor, you will never have money. We have to create more ONGCs. The government is opening up the sector, things are happening. Cairn has done a great job in Rajasthan, it’s a good opportunity for us. Vedanta will take it higher, like it has done with Sesa Goa, Hindustan Zinc etc. ‘We hope to buy govt’s stake in Balco by March’

Royalty regime in Barmer is looking like a sticky point and a historical anomaly where ONGC pays 100% royalty and cess even though it has only 30% equity. Will Vedanta agree to a change where it shares the burden in proportion to its stake?

The question does not arise. It is a contract the government had given. The matter is between the government and ONGC. Besides, the anomaly may be for ONGC. But you cannot look at ONGC and the government separately. You have to look at them together. When you do that, the government is making huge gains by way of its share of the revenue and levies and taxes. That is only going to go up with the huge upside to the production.


Q: What's happening on the Balco front, on you buying the government's residual stake?

The arbitration process is concluded . Award is expected soon. By March, we hope to acquire the government's residual stake. We are also hopeful of taking forward the process to buying the residual stake in Hindustan Zinc.