In an exclusive interaction with CNBC-TV18 on Wednesday, Vedanta chairman Anil Agarwal said that the Indian government is trying their best for a stake sale in Hindustan Zinc. "For HZL, I am 100 percent confident that the government will divest," the billionaire stated.

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Addressing the company's shareholders on the kind of growth that Vedanta has provided to Hindustan Zinc through its expertise, Agarwal said, "The Modi government has started this slogan — government has no business to be in a business and each of the business, which has been divested, has created five times more employment and created a phenomenal revenues for the government."

The government currently holds a 29.54 percent stake in HZL, while a 5.54 percent stake is with public shareholders. Mining mogul Agarwal's Vedanta is the promoter, holding a 64.92 percent stake in HZL.

The sale of the remaining government stake in Hindustan Zinc is likely only after a finality is reached on Vedanta's planned sale of global zinc assets to the erstwhile PSU, an official told earlier.

“Investors are asking us whether the foreign asset transfer is happening. We want to sell stake only when there is clarity on the issue. We don't want to rush into selling the stake,” the official added.

Earlier in February, the government had said that it will explore all legal options in the matters related to the plans of Anil Agarwal-promoted Vedanta to sell its global zinc assets to HZL.

Agarwal aims to make Vedanta Resources a debt free company

Agarwal also said that the parent company, Vedanta Resources will become a zero debt company over the next few years. The billionaire said that he is "very comfortable" with the current debt levels in the company. "Our banks, lenders everybody is very very comfortable. My dream my vision is in few years, I will have a zero debt company," he said.

In an exchange announcement earlier today, Vedanta said that Vedanta Resources, the parent company, has paid all of its maturing loans and bonds which are due in May and June 2023. Post this reduction, the company's gross debt stands at $6.4 billion, which is a reduction of $3.3 billion since the company announced its deleveraging plan in March 2022.

The filing further said that ultimately, the company intends to bring gross debt down to zero, which will be aided by expectations of robust demand, particularly in India, along with strong operational performance.

"We have a complete business plan by which we are very comfortable to take care of debt because all the money where we have built this company has come from the parent company and we have a fully plan how this will be paid," Agarwal said, adding that the company is comfortable with all the payment has been made in the past and also expressed confidence that payments will be made in the futures at well.

'Vedanta will be a trillion dollar company in next 10 years'

Agarwal also aims is to transform Vedanta into a trillion-dollar enterprise in the next ten years. "Our vision is that Vedanta will be more than one trillion dollar company in next 10 years. We will produce our own copper, oil and gas," Agarwal added.

According to him, innovation and developing new products are key for growing the company. He also added that Vedanta is the ambassador of India to the whole world.

First Published:May 31, 2023 7:17 PM IST