Vedanta Resources contributes $4.7 billion to Indian exchequer in FY20, says Anil Agarwal

The globally diversified mining and metal firm Vedanta Resources has stated that it contributed $4.66 billion to the public exchequer in India during the FY20.

According to the latest report, Vedanta Resources said: “Overall contributions to public exchequers of various countries stood at $4.7 billion (INR 34,310 crore) during the fiscal year.

Anil Agarwal, Chairman, Vedanta Resources, said: "Consistent with our commitment to building on transparency, we present our fifth tax transparency report. During FY2019-20, our contribution to exchequer was $4.7 billion, which accounts for 40% of our consolidated turnover."

As the majority of the group’s business operations are positioned in India, so most of this amount goes to the Indian exchequer.

Vedanta paid $1,398 million towards royalties to the state governments of Chhattisgarh, Rajasthan, Andhra Pradesh, Goa and Karnataka based on extraction of bauxite and other minerals.

The company has also formed an internal 'Tax Council' which plays a role as an overarching governing body to the tax function as a whole. It has also adopted guiding tax principle to maintain high standards of integrity concerning tax compliance and reporting.

Vedanta has contributed $46.4 billion to the exchequer in the last seven years, which adds around 39% of the company’s consolidated turnover.

It is considered that Vedanta remains as the highest contributor to the exchequer made by any corporate so far in the last seven years under the present government regime.

However, the company said: “Vedanta is the 'only' corporate in the country to come out with such a report that breaks down key components like economic value generated, taxes paid and contribution by each of the businesses.”

“In terms of direct taxes, the company’s contribution to the exchequer is amongst the top companies in the private sector”, it added.

"The direct economic value of $12,475 million has been generated during the year," it said.

The group engages in the exploration, production and sale of aluminium and other commodities like zinc, lead, silver, copper, iron ore and oil & gas and have its presence across India, South Africa, Namibia, Ireland, Australia, Liberia and UAE.