Vedanta may have to hinge on debt to finance Rs 560-bn capital expenditure

It may not be easy for Anil Agarwal-led Vedanta to carry out the $8-billion (Rs 560 billion) capital expenditure (capex) through internal accruals. 

High dividend payouts, servicing of existing debt and relatively low cash profits may compel the metal-and-mining major to raise debt.

Last week, Chairman Navin Agarwal said through the capex, being planned over the next three years, the firm aims to grow by at least 50 per cent in revenue. “There is no plan at this point to raise any debt as we have comfortable cash flows. These (cash flows) will be used to fund expansion and hence