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Vedanta Chairman Anil Agarwal has called for urgent steps to develop India's domestic natural resources, warning that global conflicts are disrupting supply chains and affecting the country's energy imports. He pointed out that India imports nearly 90 per cent of its oil, 95 per cent of its copper and 99.5 per cent of its gold despite having strong geological potential. Drawing from more than four decades in the mining, metals and oil sectors, Agarwal said expanding domestic production could reduce import dependence while generating jobs, industries and exports. He also emphasised the need for policy reforms and globally competitive mining companies.
Vedanta Chairman Anil Agarwal has urged India to accelerate the development of its domestic natural resources, stating that ongoing conflicts in West Asia are disrupting global supply chains and affecting the country's energy imports. He said such geopolitical tensions highlight the risks faced by countries that rely heavily on imported commodities. Advertisement
In a statement, Agarwal said it was unfortunate that India was experiencing the negative effects of a war it was not involved in. According to him, disruptions in global supply chains and commodity prices can significantly impact countries dependent on imports.
He pointed out that India currently imports nearly 90 per cent of its oil requirements, around 95 per cent of its copper and about 99.5 per cent of its gold. Agarwal noted that this level of dependence exists despite India having strong geological potential and abundant natural resources.
Drawing on his more than four decades of experience in the minerals, metals and oil industries, Agarwal said India could substantially reduce its import dependence if domestic resources were developed efficiently. Expanding production within the country could also help create jobs, build new industries and strengthen exports, he added.
Agarwal also reflected on his own business journey, noting that he had moved to Mumbai from Bihar at the age of 19 and gradually built Vedanta from the ground up. Over time, the group expanded by acquiring major assets such as Hindustan Zinc, Bharat Aluminium Company Limited (BALCO), the oil and gas business of Cairn India and Sesa Goa Iron Ore.
He said the company's turnaround of several of these assets demonstrated the potential of private enterprise in the sector. According to Agarwal, Vedanta increased zinc production by ten times and aluminium production by twenty times after taking over certain operations. This expansion, he said, helped create large industrial ecosystems, with more than 1,000 companies emerging across these value chains.
Agarwal added that Vedanta has contributed about INR 4.5 lakh crore to the national exchequer over the past decade through taxes, royalties and other payments.
Looking ahead, he outlined the company's future production ambitions. In the oil and gas segment, Vedanta aims to reach output of one million barrels per day. In iron ore, Agarwal said he envisions production of around 100 million tonnes, which would account for roughly one-third of India's current output.
He also stressed that India needs globally competitive mining companies capable of operating at scale. Agarwal indicated that Vedanta should evolve into a company for India similar to what global mining giants such as Rio Tinto and BHP represent for Australia, and Vale for Brazil. He added that the country should ideally have several companies of similar scale and capability.
At the same time, Agarwal highlighted the need for policy reforms to support the sector's growth. He said the regulatory approach should shift towards simpler rules and greater trust in businesses. According to him, systems based on self-certification and periodic audits would be more effective than prolonged approval processes and litigation.
He further stated that the system should avoid creating unnecessary hurdles for businesses. Entrepreneurs, he said, should receive recognition and respect, and regulators should adopt a more supportive approach toward business activity.
India has in recent years taken steps to expand its mining and energy sectors through reforms such as commercial coal mining auctions and changes to mineral exploration rules. However, industry leaders have often highlighted the need for faster clearances and a more predictable regulatory environment to accelerate large-scale resource development.
Source PTI
FAQ
1. What concern has Anil Agarwal raised about India's resource dependence?
Anil Agarwal, chairman of Vedanta Limited, has urged India to accelerate the development of its domestic natural resources. He warned that global conflicts and geopolitical tensions can disrupt supply chains and affect countries like India that depend heavily on imported commodities.
2. What import dependence figures did Agarwal highlight?
Agarwal pointed out that India imports nearly 90 percent of its oil requirements, around 95 percent of its copper and approximately 99.5 percent of its gold. According to him, this level of dependence exists despite the country having strong geological potential and significant untapped natural resources.
3. Why does Agarwal believe domestic resource development is important?
He argued that expanding domestic mining and energy production could significantly reduce import dependence. Developing these resources within the country could also create large-scale employment, support the growth of related industries and strengthen India's export capabilities.
4. What examples did Agarwal give from Vedanta's growth journey?
Agarwal referred to Vedanta's expansion through acquisitions such as Hindustan Zinc Limited, Bharat Aluminium Company Limited and Cairn India. He said the company significantly increased production after these acquisitions, including a tenfold rise in zinc output and a twentyfold rise in aluminium production.
5. What future production targets did Agarwal outline?
He said Vedanta aims to scale up oil and gas production to around one million barrels per day. In iron ore, the company envisions producing around 100 million tonnes annually, which would represent roughly one-third of India's current output.
6. What comparison did Agarwal make with global mining companies?
Agarwal said India needs globally competitive mining companies similar to major international firms such as Rio Tinto, BHP and Vale. According to him, India should ideally have several large companies capable of operating at a similar scale.
7. What policy changes did Agarwal suggest to support the sector?
He emphasised the need for regulatory reforms that simplify approvals and reduce delays. Agarwal suggested that systems based on self-certification and periodic audits could replace lengthy approval processes, allowing mining and energy companies to operate more efficiently while still maintaining oversight.
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