Mining conglomerate Vedanta Resources will invest USD 30 million (about Rs 200 crore) in research and development (R&D) activities, its Chairman Anil Agarwal said today.
“The company will continue to invest in best-in class technology for all its assets. For this reason I announced this year 30 million dollars of funding for our in-house R&D programme,” he said.
Speaking to shareholders at the London-listed firm’s annual general meeting, Agarwal said it is an exciting time for the Indian economy, which will drive the demand for commodities globally.
“We are witnessing a gradual turnaround in commodities sector and I believe the worst is behind us. Vedanta has a high-quality portfolio of assets. We have demonstrated our efficiency as a low cost producer in a challenging market with lower commodity prices,” he added.
The company has generated strong free cash flow, reduced net and gross debt and delivered strong EBITDA margins, the billionaire said.
“The mining bill approved by the Indian Parliament last year and the auction of mines, will open up natural resources sector. Introducing the Goods and Services Tax Bill, with a uniform tax code, will attract more investment,” he said.
Prime Minister Narendra Modi’s government is spearheading a revolution in the business environment and India is now the fastest growing economy in the world, Agarwal noted.
“India saw FDI inflows of almost USD 56 billion last year. Vedanta, as a global resources company operating in India, offers investors a way to share in India’s success story,” he said.
The metals baron said Vedanta has invested USD 37 million in sustainable development and CSR projects which reached 2.25 million people around the world.