New Delhi: Vedanta Aluminium, a subsidiary of metal and mining giant Vedanta Resources, is believed to be in talks with banks, including SBI, to raise Rs10,000 crore debt for part-funding its project in Orissa.
The company is in dialogue with a syndicate of banks, led by the country’s largest lender, SBI, to arrange the debt, which would be used for expanding its aluminium production capacity in Orissa, a source close to the development said.
Even as Vedanta Aluminium Limited (VAL) has approached the banks for debt, its parent company Vedanta Resources would not stand as guarantor for the loan, he added.
When asked if VAL is in the process of raising Rs10,000- crore debt and has roped in SBI as the lead manager, Sterlite Industries director finance Tarun Jain refused to comment.
Sterlite Industries, the flagship company of the London Stock Exchange-listed Vedanta Resources, owns 30% stake in VAL. Vedanta Resources investment arm Twin Star Holding has a 45% stake in the aluminium firm while the rest is with Welter Trading.
As part of its expansion, VAL will augment the capacity of its alumina refinery to five million tonnes per annum (MTPA) from the present 1.4 MTPA while that of aluminium smelter to 1.75 MTPA, from close to 0.7 MTPA.