Vedanta Resources PLC
01 March 2006
1 March 2006
Vedanta Resources plc
Comments on Indian Budget
Vedanta Resources plc ('Vedanta') notes that in yesterday's Union
Budget 2006-2007 (the 'Budget') presented to the Indian Parliament, the
Government of India announced certain changes that will have an impact on the
company and its markets.
Import duties on aluminium, copper and zinc were reduced from 10% to 7.5%.
Import duties on finished metals were brought further in line with those in
other ASEAN countries and this had largely been anticipated. These duties only
impact domestic sales. Import duties on alumina have been reduced from 10% to
7.5% and on ores and concentrates from 5% to 2%, a move that will positively
impact Vedanta's aluminium and Indian copper operations. Vedanta anticipates
that for the year to 31 March 2006, these changes will not have a material
impact on reported results.
The Budget promises a continuation of policies to grow the economy and encourage
inward investment, by increasing spending on infrastructure. We expect that this
will ensure continuing and accelerating Indian demand growth for base metals.
Measures have also been announced to de-block nearly 20 billion tonnes of coal
for power projects. Vedanta will be well positioned to meet this demand and
anticipates that these coal initiatives will positively impact the company's
recently announced green field 500,000 tpa $2.1 billion aluminium smelter
project in Jharsuguda, Orissa.
For further information, please contact:
Sumanth Cidambi email@example.com
Associate Director - Investor Relations Tel: +44 20 7659 4732 / +91 22 5646 1531
Vedanta Resources plc
Robin Walker Tel: +44 20 7251 3801
About Vedanta Resources plc
Vedanta Resources plc is a London listed diversified metals and mining group.
Its principal operations are located throughout India, with further operations
in Zambia and Australia. The major metals produced are aluminium, copper, zinc
and lead. For further information, please visit www.vedantaresources.com.
This press release contains 'forward-looking statements' - that is, statements
related to future, not past, events. In this context, forward-looking statements
often address our expected future business and financial performance, and often
contain words such as 'expects,' 'anticipates,' 'intends,' 'plans,' 'believes,'
'seeks,' or 'will.' Forward-looking statements by their nature address matters
that are, to different degrees, uncertain. For us, uncertainties arise from the
behaviour of financial and metals markets including the London Metal Exchange,
fluctuations in interest and or exchange rates and metal prices; from future
integration of acquired businesses; and from numerous other matters of national,
regional and global scale, including those of a political, economic, business,
competitive or regulatory nature. These uncertainties may cause our actual
future results to be materially different that those expressed in our
forward-looking statements. We do not undertake to update our forward-looking
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