Auctions are best mode; will touch 190 bpd in 2013: Vedanta

CNBC-TV18 reported on Wednesday that the government may consider listing Balco to help determine a fair valuation before a residual stake-sale. And echoing that sentiment is Vedanta chief Anil Agarwal.

Agarwal who says the company will go the whole hog in order to ensure that the sale of the residual stakes in HZL and Balco go through even if that means launching an IPO for Balco.
"We were were told, when we took over the company, very clearly that there will be full divestment. The government has given us some time and clearly mentioned the process. And as long as the process is clear, we haven’t looked at it, but if it is practical that's fine. If we have to cough up a lot of money, but if it is practical, we will accept it." Below is an edited transcript of the interview on CNBC-TV18.  Q: Do you believe that the proposal that the ministry of mines has floated apparently at this point in time - that the government offloads 5 percent and you offload 5 percent and you go in for an IPO for Balco which will perhaps be the best method of price discovery. Are you in favour of this?
A: No. It is a question of whether it is practical. Q: Is it practical?
A: If it is practical, we will do it. Q: Do you believe it is practical?
A: I have not looked at it, but right now, if it is practical we will do it. We are one with the government in trying to take the country forward. We are ready to support the divestment. If an independent process arrives at a valuation and says this is the price, we will accept it. Q: I was asking you about going from 175 to 190 bpd which is what you have stated that you will be doing and then encouraging Cairn to go to 500,000 bpd. By when do you actually hope to touch 190 bpd because you have already got clearances for that?
A: Our aim is 190 bpd but we are waiting for more exploration. We have to have a balance of deposit and for that more exploration is needed. We will definitely try to touch 190 bpd next year. Q: There were not too many takers for the last NELP round. The response was very lukewarm. Will Anil Agarwal will be the brand ambassador for the government’s next NELP round?
A: Hindustan Zinc is a very good opportunity with a reserve of only five years. We created reserve for 30 years. Hindustan Zinc produced only 150 thousand tonne zinc, now it is producing almost 1 million tonne. Q: Now that the government is talking about the possibility of auctioning de-allocated blocks, how serious are your efforts actually going to be as far as coal auctions are concerned?
A: It is again a question of a clear-cut policy. Q: So, do you believe auctions are the best way?
A: Of course. Almost 60 percent of the money goes to the government. Q: Do you believe that there will be any more restructuring as far as Cairn is concerned?
A: Cairn, Hindustan Zinc and Balco will be part of the restructuring along with others in a structure that is transparent and strong.