Billionaire Anil Aggarwal’s company defeats the government, the case is worth 9545 crores

Mining tycoon Anil Aggarwal-led Vedanta Limited has invested Rs. 9,545 crore ($1.16 billion) won an arbitration case against the government for non-acceptance of expenditure. The government demanded more payments from the company’s Rajasthan oil and gas fields. On the other hand, Vedanta said that on certain fixed costs Rs. 9,545 crore was spent.

The government reallocated some of the cost of the oil block and waived part of the cost of laying a pipeline for oil produced from the Rajasthan block. As such, additional profits were sought from petroleum (or its share in the oil and gas sectors). As per the agreement, the company is allowed to recover all expenses before sharing the profit in a fixed ratio with the government. If part of the cost is rejected, it will lead to more profit and the government will get a bigger share. Vedanta challenged this demand before the arbitration tribunal.

This energy stock, which hit the upper circuit for 5 days in a row, rose 85% in 1 month, investors laughed.

“The company has received the arbitration order dated August 23, 2023,” Vedanta told the stock market. The company, however, did not give further details of the arbitration award and said it is reviewing the award and assessing its financial impact. Purna Vedanta in its latest annual report said its financial impact was Rs. 9,545 crores.