Vedanta lines up over Rs 20,500 crore for Rajasthan business

Mining conglomerate Vedanta has set aside more than Rs 20,500 crore towards investment in oil and gas and zinc business in Rajasthan over the next three years.

While Cairn India will invest Rs 12,500 crore over the next 3 years, Hindustan Zinc (HZL) has marked Rs 8,357 crore for the same period.

"With focus on Resurgent Rajasthan Summit to be held in Jaipur on November 19-20, 2015, Vedanta has signed MoUs to invest over Rs 20,000 crore for the expansion of zinc-lead mines and oil business in Rajasthan," the firm said in a statement.

Cairn India signed the MoU for crude oil production to the order of 1,75,000 barrels per day (bbls/day) and 3 lakh cubic metre per day natural gas for supply to the Gujarat Narmada Fertiliser Corporation from 3 petroleum mining lease areas, it added.

"Cairn India would be developing Mangla-Bhagyam extended oil recovery polymer and Mangla-Aishwariya in-fills, setting up Sulphate Removal Plant and developing RGD Field, which lays the foundation for sustainable gas production," it said.

The firm will undertake these projects in Barmer and Jalore districts of Rajasthan.

HZL CEO Sunil Duggal told PTI: "HZL has been working closely with the Rajasthan government not just towards expanding business operations, but also for social projects. It has signed an MoU today worth Rs 8,357 crore to be invested in coming three years."

The firm will be expanding its mines and smelters and has proposed to set up a fertiliser plant in Rajasthan, he added.

HZL will develop and expand new and existing zinc-lead ore mines as well as smelters in Udaipur, Rajsamand, Ajmer, Chittorgarh and Bhilwara. The firm has already invested close to Rs 12,000 crore in its business in Rajasthan.

The company will expand its mine production to 12.80 million tonnes per annum (mtpa) from 9.09 mtpa and finished metal production to 1.028 mtpa from 0.85 mtpa, it said.

HZL has mines located in Rampura Agucha, Sindesar Khurd, Zawar, Rajpura Dariba and Kayad in Rajasthan, with smelters in Dariba, Chanderiya and Debari. HZL is also looking to expand its all underground mines.

The fertiliser plant to be commissioned will manufacture 0.5 mtpa of di-ammonium phosphate (DAP) in Debari in Udaipur district with an estimated investment of Rs 1,350 crore, Vedanta said.

"The company intends to implement the project in the next 3 years. This further investment would generate additional employment opportunities for more than 7,000 people," it added.