Vedanta to invest Rs 30,000 crore in Cairn India to ramp up capacity

With this investment, production capacity of Cairn India would go up to 3,50,000 barrel of oil equivalent per day

Vedanta group has lined up Rs 30,000 crore investments to ramp up the capacity of Cairn India, one of the largest independent oil and gas exploration and production companies in the country under its stable.

Cairn India is in the process of being merged with Vedanta, for which the shareholders of both the entities have already given their nod.

With this investment, the production capacity of Cairn India would go up to 3,50,000 barrel of oil equivalent per day.

The average production of Cairn India, which has its producing assets located in Rajasthan, Cambay and Ravva, was 211,671 boepd in FY 2015.

"My aim is to cater to 50 per cent of country's crude oil needs", said Vedanta group chairman Anil Agarwal.

He said, the recent decision of OPEC to reduce production by 1.2 million barrels a day would help the company as it is expected to push up prices.

Similarly, the rebound in commodity prices has given an impetus to the company to ramp up production from its iron ore mines in Goa. "Currently we are exporting low-grade iron ore to countries like China and Korea. We may ramp up production in a conducive market environment", Agarwal said.

Vedanta, which has recently bagged a composite license (for prospecting as well as mining) for a gold deposit in Chhatishgarh through the auction process under the new MMDR Act, is looking at more opportunities to acquire mineral assets by participating in auctions for other minerals like iron ore and bauxite.

"We would like to participate in the auction for iron ore mines", Agarwal said. On the possible foray into steel making business, he said, "we would consider such a proposal if the government insists on setting up of steel plants".

Agarwal said, his mineral assets in countries like Zambia, Namibia and South Africa are doing well at present.