Regulatory insight

Author: | Published: 1 Aug 2012
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What is the business profile of your company?

Vedanta is a diversified natural resources group having business interests in commodities such as copper, zinc, lead, silver, aluminium, power, iron ore and oil and gas. Vedanta is listed on the London Stock Exchange.

As a supplier, who are your major institutional and project clients?

As a customer of commodities, our clients include: for oil and gas, refineries in India such as Reliance Industries, ONGC subsidiary Mangalore Refineries and Petrochemical, and IndianOil Corporation. Domestic sales for zinc, aluminium and copper are to metal producers or end-users in India, while export sales are mainly to the Far East, the Middle East, Africa, Europe and China. For iron ore, we sell mainly to China.

How many lawyers work in-house at Vedenta Resources, and to what extent do you outsource work and to which law firms?

The in-house legal team is separate for each company within the Vedanta Group. We do outsource legal work, and some of the firms we have used recently include Allen & Overy, Ashurst, Baker & McKenzie, Latham & Watkins, Linklaters and Shearman & Sterling.

Do you think the Indian regulators are working towards a more robust environment programme?

One of the key challenges facing India today is how to maintain high economic growth and, at the same time, ensure environmental sustainability and social justice. The government has been working on various bills and initiatives, such as the MMDR bill for mining, the land acquisition bill for land, and establishing a new environment regulator.

How do you think the regulators will respond to the coal licensing issue raised by the Comptroller and Auditor General of India?

We understand that the regulators will be working on the auctioning of coal assets, which is a more efficient manner of allocating natural resources. We believe that, in the near future, coal and other mining assets will also be auctioned.

What will be the financial implications for developers and investors if such decisions are implemented?

We can see coal assets being auctioned moving forwards, which is more efficient. In a way, only serious players will be interested now.

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