Anil Agarwal, the founder and Chairman of Vedanta Resources Plc., in a freewheeling discussion on India's industrial development and inclusive growth process, said in his signature unabashed style, “It is vital for a nation to develop its natural resources. If a nation is to develop above the ground, it needs to develop the resources it has under the ground." A nation, he stressed, cannot develop if it imports vital resources.
He points out that a single aluminium processing factory can support hundreds of small businesses. “We make ingots, but there will be factories that will make sheets, foil and even aluminium that is used in advance processes like car chassis’ now. India has large reserves of high-quality bauxite, yet our market is being inundated with cheap Chinese aluminium.”
Mr. Agarwal believes that India sits on great oil and gas reserves and is proud of the work that his group company Cairn India does in the field. He however refuses to be drawn into the current tax imbroglio.
One of the problems he talks of in India is that he feels that the State Governments want to corner all resources for themselves, which has led to severe under-utilisation of resources.
“For instance, Rajasthan has some of the best marble in the world, yet because private mining is not allowed, illegal mining is rampant. If you auction the mines, you could also establish factories that could process and develop finished products ready for export. Not only would there be vital employment, but the Government would also gain from auction revenue or even revenue-share. If the Government wants to implement all the social sector schemes they want, they have to allow the use of these resources,” he says.
However, Vedanta and Agarwal who have faced protests, particularly around the development of their Niyamgiri bauxite mines find themselves in a quandary sometimes.
“I am of the strong belief that strict environmental and social norms have to be stipulated by the Government. And rights-holders must adhere to these norms, but the norms have to be non-ambiguous.”
However, Mr. Agarwal does like to point out that the fruits of development can transform lives, and Odisha's Kalahandi district, where his company and Cairn India have done a lot of good work, is an ideal example of that.
“India is a rich country and has the resources to develop and I feel that this Government is taking the right steps, but there is still a long way to go,” he opines.
