Mining major Vedanta might sell its Tamil Nadu copper plant for Rs 4,500 crore, reported Business Standard. Burdened by debt, Vedanta has been trying to sell the plant since the past year.
Last year, the company had invited Expressions of Interest for the unit but failed to get any favourable response as it has been closed for the past 5 years. As per Business Standard, the process to sell the plant has started again.
“The process has now started again with bankers reaching out to potential bidders,” Business Standard quoted an unnamed banking source as saying.
Following Tamil Nadu Pollution Control Board's order, the plant was shut down. The company has moved the apex court against the closure and an order is expected by August.
The report further added that Vedanta Resources (VRL), the parent company of Vedanta Limited, is trying to raise funds to repay its debt. The amount raised by selling the unit would help in meeting its capital expenditure of $1.7 billion for this year. Out of the $4.2 billion debt VRL still has to repay $2.2 billion in the current financial year. The company has already paid $2 billion in the first quarter of FY24.