Govt may okay Vedanta’s Rs.17k-cr offer
fe Bureau: New Delhi, Dec 01 2012, 01:05 IST
as yet been made on its application for further exploration. Once the approval is given, Cairn can ramp up production from the current 175,000 barrels per day to 300,000 barrels per day within a period of two to three years. Once the clearances come through, based on the terms of the production sharing contract and a $100 per barrel price, the government stands to gain around $30 billion (of this, $8 billion goes to the Rajasthan government) over 20 years, or around $15billion on a net present value basis, assuming a discount rate of 10%.
Commenting on the state-wide ban on iron ore mining in Goa, where the group’s Sesa Goa is located, Agarwal pointed out it was a colossal loss for the country since the mining industry in Goa contributed Rs 7,750 crore annually to the central and state budgets while employing 400,000 people. The closure of the industry meant the country would end up losing $4 billion worth of forex each year – against a potential of 600 million tonnes of iron ore development in a year, India produced only 169 million tonnes last year. “The only way India can provide employment is through industry and if we carry on denying industry permissions, it will keep industry away and we will remain an import-dependent economy,” Agarwal observed.
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