Amid war-driven supply risks, Vedanta’s Agarwal calls for policy stability, simpler rules to boost domestic resources

Amid the ongoing war in West Asia that has rattled commodity markets, Vedanta Chairman Anil Agarwal has called for policy stability, simplified regulations and greater entrepreneurial freedom to unlock domestic production and reduce India’s dependence on imported resources.In a detailed LinkedIn post, Agarwal reflected on India’s geological strengths and his four-decade journey in the minerals, metals and oil industries, arguing that a supportive policy environment could help the country build long-term resource security.His comments come at a time when the ongoing conflict in West Asia has disrupted shipping routes and energy supply chains, pushing crude prices higher and raising concerns around the availability of LPG, petrochemicals and other energy-linked inputs that many industries rely on. The disruptions have once again highlighted the risks of heavy import dependence for critical raw materials.A system that still slows miners down“Most of the advanced countries have become prosperous by developing natural resources, including oil and gas,” Agarwal wrote. “In India, the system has to stop creating hurdles. It needs to take a long-term view, as this government is not revenue-minded but production-minded. It must facilitate. Instead of notices and judicial activity, all businesses need to receive recognition and respect. The benefit of doubt should pass onto them.”Also read: Aluminium faces highest upside risk if West Asia conflict persists, Vedanta best placed: CLSAHe also pointed to missed opportunities in the sector. “In India, we have economic heroes who can raise production equal to the biggest and best in the world. We should not allow tunnel vision or an outdated mindset to keep us small and dependent,” Agarwal said, recalling the example of Rio Tinto’s diamond mine investment in Madhya Pradesh.According to him, the project could have turned India into a global hub for diamond production, but the company eventually exited because of “a complex, interfering and discouraging system”.“The most important thing is trust. Keep the system simple, keep regulation limited, and you eliminate the root cause of wrongdoing,” he said. “We should have self-certification instead of lengthy approvals and clearances. The government issues the rulebook and entrepreneurs strictly comply, subject to audit. Constant enquiry and interference only discourage enterprise. Also, the mindset of discrimination between the public sector and the private sector should change.”Vedanta’s bet on scale and productionAgarwal also pointed to Vedanta’s own journey to illustrate what large-scale investment can achieve in the sector.Agarwal said the company acquired assets such as Hindustan Zinc and BALCO under a privatisation programme, as well as Cairn’s oil and gas business and Sesa Goa Iron Ore.The ambition, he said, was to scale production so that India could reduce imports and eventually become an exporter. According to Agarwal, zinc production increased tenfold and aluminium output rose nearly twentyfold following these investments, while the company has contributed about ₹4.5 lakh crore to the exchequer over the past decade.It is pertinent to note that Vedanta is a diversified natural resources conglomerate operating across metals, mining and energy value chains. Its businesses include aluminium through Bharat Aluminium Company (BALCO), zinc-lead-silver via Hindustan Zinc Ltd, oil and gas through Cairn Oil & Gas, copper smelting under Sterlite Copper, and iron ore and steel through Sesa Goa Iron Ore and Electrosteel Steels Ltd. The group also operates ferro alloys and nickel through Nicomet and runs large thermal and renewable power generation assets to support its industrial operations. In recent years, the company has also expanded into emerging sectors such as semiconductors, glass substrate manufacturing and critical minerals like nickel as part of its strategy to diversify into technology-linked materials and future-facing industries.Also read: Vedanta Q3 Results: Aluminium EBITDA beats expectations, topline grows 19%Why Agarwal wants more “Vedantas”Agarwal said that Vedanta has raised about $35 billion from overseas investors and deployed the capital in India’s resource sector.“Because of that, Hindustan Zinc can also produce silver and fertiliser, and we are working very hard to start producing critical minerals very soon—something we were told would never happen in India,” he said.Mining, Agarwal noted, typically requires scale and significant capital. “Globally, only a few very large companies engage in mining as it is very difficult without scale,” he wrote. “Vedanta should be for India what Rio Tinto and BHP are for Australia or Vale is for Brazil. Other entrepreneurs and companies must create new Vedantas.”

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