Vedanta Ltd, a mining company, has received a long-term loan of Rs 3,918 crore from Power Finance Corporation Ltd (PFC). This financial support will help Vedanta speed up the completion of its power projects.
The group aims to increase its power business capacity in India to 4.8 GW by the fiscal year 2027, according to sources familiar with the matter.
This loan follows Vedanta’s acquisition of Meenakshi Energy Ltd on December 28 through a bankruptcy process. Meenakshi Energy owns a coal-based power plant in Nellore, Andhra Pradesh, which Vedanta will use to supply power to merchants.
Vedanta has acquired two plants: Meenakshi Energy Ltd in Andhra Pradesh with a 1 GW capacity, and Athena Power in Chhattisgarh with a 1.2 GW capacity. The funds from PFC will primarily be used for these key power projects.
PFC, being India’s largest power-sector lender, typically provides financing to companies involved in promising power projects and manufacturing power-sector equipment.
Vedanta’s focus on its power strategy is highlighted amidst its ongoing demerger. The company’s strong financial position has attracted investments from marquee investors like BlackRock, Abu Dhabi Investment Authority (ADIA), and domestic mutual funds.
Over the past two years, Vedanta has significantly expanded its energy generation business. Recently, Serentica Renewables, a renewable power company promoted by Sterlite Power, announced plans to invest Rs 25,000 crore to expand its projects portfolio to about 4 GW by June 2025.
Vedanta’s alumina refinery in Lanjigarh, Odisha, has also undergone expansion, increasing its capacity from 2 to 5 metric tonnes per annum.
Vedanta’s mining operations at the Bicholim mineral block in Goa have also commenced, aligning with its growth plans.
The company’s demerger will lead to the creation of six independent verticals, unlocking value and facilitating focused growth in different sectors.
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