Vedanta in a more comfortable position to manage debt, says chairman Anil Aggarwal

Mining major Vedanta is in a comfortable position to manage its debt, cushioned by the $1.3 billion loan availed by the company along with the dividend and royalty gains that it will earn, the chairman of Vedanta Resources told Moneycontrol in an exclusive interview on the sidelines of the second edition of the India Energy Week.

Last year, media reported that Vedanta was in talks with Standard Chartered Bank for a loan of $1.2 billion - $1.3 billion against brand fee receivables. However, Aggarwal did not disclose further details on the loan sanctioned.

"We have 5 years, in 5 years we have to pay the entire debt and that should be more comfortable for us what we get a dividend, what we get the royalty should be more than enough for us to clear this," Aggarwal said.

The company is now betting on the dividends, royalty, and cash raised from the sale of non-core assets to repay lenders. VRL received a total dividend payout of $2.5 billion in FY23. It received a brand fee of $327 million in FY23 from Vedanta Ltd, Hindustan Zinc, and other subsidiaries.