Vedanta to raise Rs 10k cr debt for Orissa project

Vedanta Resources, promoted by NRI billionaire Anil Agarwal, is believed to be in talks with banks, including SBI, to raise Rs 10,000 crore debt to part fund the expansion of its aluminium project in Orissa.

Vedanta Aluminium (VAL), a subsidiary of global metal and mining major Vedanta Resources, is talking to a syndicate of banks led by SBI for the debt, a source close to the development said.

Vedanta Resources would not be a guarantor for the loan to be taken by VAL, he added.

When asked if VAL is in the process of raising Rs 10,000 crore debt and has roped in SBI as the lead manager, Sterlite Industries Director Finance Tarun Jain refused to comment.

Sterlite Industries, the flagship company of the London Stock Exchange-listed Vedanta Resources, owns 30 per cent stake in VAL. Vedanta Resources investment arm Twin Star Holding has 45 per cent stake in the aluminium firm while the rest is with Welter Trading.

As part of its expansion, VAL will augment the capacity of its alumina refinery to 5 million tonnes per annum (MTPA) from the present 1.4 MTPA while that of aluminium smelter to 1.75 MTPA from close to 0.7 MTPA.