Vedanta Resources PLC
28 February 2005
28 February 2005
Vedanta Resources plc
Change in Government Duties
Vedanta Resources plc ('Vedanta') notes that in today's Indian Budget, the
Government of India announced several changes that will impact the company.
Import duties on metals were brought closer to those in other ASEAN countries
and had largely been anticipated.
Import duties on aluminium, copper and zinc were reduced from 15% to 10%, on
lead from 15% to 5% and on alumina from 20% to 10%. These duties only impact
domestic sales and for the year to 31 March 2005 the reductions will have no
material impact. The decline had already been included in our assumptions for
the year ending March 2006.
Corporate tax has been reduced from 35% to 30%, though there has been an
increase in a corresponding surcharge and some reductions in capital allowances.
It is anticipated that the impact of this will be broadly neutral.
The budget was strongly supportive of further spending on infrastructure and
encouraging investment in the mining industry.
Anil Agarwal, Chief Executive Officer of Vedanta Resources plc, commented, 'We
welcome this progressive budget. The reduction in duties is part of a general
trend of liberalisation to stimulate growth and demand in the Indian economy.
The focus on infrastructure and incentives for capital investment should also
lead to strong long term demand for all our metals and gives a healthy
background for our extensive programme of capacity expansion'.
For further information, please contact:
John Smelt, Head of Investor Relations Tel: +44 20 7499 5900
Vedanta Resources plc +44 787 964 2675
James Murgatroyd Tel: +44 20 7251 3801
Notes to Editors:
Vedanta is a London listed diversified metals and mining group. Our principal
operations are located throughout India, with further operations in Zambia and
Australia. The major metals produced are aluminium, copper, zinc and lead.
This information is provided by RNS
The company news service from the London Stock Exchange