The $12 Billion dollar Question. When Promoter, Group And Subsidiary All Go For a Cleanup

Cleanups don’t go deeper than this. The Anil Agarwal owned $12 billion Vedanta Group, a mining major that has had its share of confrontations with environmentalists worldwide, has embarked on a major green push.

It’s a push accompanied by similar moves at Subsidiary Hindustan Zinc limited. And not just that, all this comes even as owner Anil Agarwal launches an unprecedented push on social media to showcase his life, struggles and all.

Millions of people come to Mumbai to try their luck. I was one of them. I remember the day I left Bihar with only a tiffin box, bedding, and dreams in my eyes. I arrived at Victoria Terminus station, and for the first time… pic.twitter.com/e4cN2U89vu

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— Anil Agarwal (@AnilAgarwal_Ved) February 15, 2022

Vedanta Ltd has announced that the group will be sourcing 580 MW of renewable energy for its operations in India. Vedanta held that it has signed a Power Delivery Agreement (PDA) with special purpose vehicles that are affiliates of Sterlite Power.

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The SPVs are engaged in the business of supplying hybrid based power with solar, wind and storage solutions.

Vedanta has said the decision is aligned with its ESG vision of ‘Transforming for Good’ and help Vedanta to become net zero carbon by 2050 or sooner and use 2.5 GW of Round the Clock (RTC) renewable energy for its operations by 2030.

The official statement states that Vedanta aims to partially replace existing captive thermal power capacities with renewable energy for smelting and associated operations, and meet power requirements of capacity expansion at Vedanta Aluminium Limited, Jharsuguda, Balco and Hindustan Zinc.

The renewable energy supply will be for a period of 25 years from the date of commissioning (DOC) of the project by the affiliates of Sterlite Power under the deal. Vedanta said the project will be funded on a 70:30 debt to equity basis. Vedanta along with its subsidiaries will own 26% equity in the SPVs. The mining group says that the total investment will be up to Rs 850 crore with an expected IRR of more than 25%.

Vedanta maintains that through the purchase of 580MW of renewable energy, 2.7 million tons of greenhouse gas emissions will be prevented from entering the atmosphere.

“This agreement is an important milestone in our journey towards becoming the ESG leader in the natural resources sector. The project is poised to become one of the largest renewable energy hybrid projects in India. It demonstrates the Group’s commitment to become one of the greenest natural resources companies in the world,” said Sunil Duggal, Group CEO, Vedanta.

Hindustan Zinc’s RE Quest

Meanwhile, Vedanta’s key subsidiary and mining firm Hindustan Zinc has also announced that it will be investing Rs 350 crore to install upto 200 MW of renewable energy capacity.

The Vedanta subsidiary says that the RE project will be built under group captive norms on Build-Own-Operate (BOO) basis and it will own 26 per cent equity in the SPV. Hindustan Zinc has set target for a 40% reduction in carbon footprint by 2030 and achieving carbon neutrality by 2050.

Chief Executive Officer Arun Misra held, “I am elated that we are marching ahead in our ESG road map for the development of renewable power supply up to 200 MW. We stand committed to decarbonising its operations and transition to the production of green products of zinc and lead.”