Vedanta Ltd would suffer a loss of about $100 million if its Tuticorin copper smelter in southern India continues to remain shut for a year, Chairman Anil Agarwal told television channel ET Now on Friday, July 20.
The smelter has been shut since May after the Tamil Nadu state government cut power supply to the unit, following violent protests that resulted in the death of 13 people in police firing.
Vedanta has sought a permanent injunction against the state government from interfering with the operations of its copper smelter, according to a petition filed with the country's environmental court. Speaking to the channel regarding the same, the Vedanta chairman said:
This (plant) is about 2 percent of our balance sheet... and if the plant is shut down for the whole year we will have a loss of about $100 million.
When asked about his firm's backup plan if the government orders for a permanent closure of the plant, he said: "Whatever will happen, we will accept."
Agarwal did not elaborate and the company did not respond to Reuters' email seeking comments.
Shares in the company were trading down 2.74 percent at 202.50 rupees by 0720 GMT, after falling as much as 3.6 percent earlier in the session.
Vedanta, which aims to delist its shares from the London Stock Exchange, has interest in hydrocarbons, metal, and mining business in India.
The company wants to raise its stake in Hindustan Zinc Ltd through the purchase of the government's stake.
"The government had intentions to give another 20-25 percent of shares and whenever they give, we will take it and we can merge in and make it (Hindustan Zinc) one Vedanta Ltd. But at this point I am very comfortable to run the entire company together," he said.
Agarwal said Vedanta's current cost of oil production stands at $6 a barrel and it aims to produce 50 percent of the country's oil output. The company produces about 30 percent of India's oil output, mainly through its block in the desert state of Rajasthan.
