Vedanta's Political Donations Soar To Rs 155 Crore Through Electoral Bonds In FY23

Vedanta Resources has faced media attention regarding $4.2 billion in payment dues in the current fiscal year. In the last 5 years, the company has donated Rs 457 crore to political parties.

The political donations of Anil Agrawal-led mining firm through electoral bonds surpassed the previous year's contribution of Rs 123 crore.

Source : Getty

Mining major Vedanta Ltd has made a total donation of Rs 155 crore to political parties through electoral bonds in the financial year 2022-23, reported The Economic Times citing stock exchange disclosures by the firm. The political donations of Anil Agrawal-led mining firm through electoral bonds surpassed the previous year's contribution of Rs 123 crore. According to the report, in the last five years, the company has donated Rs 457 crore to political parties through these bonds.

The electoral bond system, initiated by the government in 2018, offers an alternative to cash donations for registered political parties. The State Bank of India (SBI) is the authorised sole lender in the country responsible for the issuance and encashment of these bonds.

A report by the Association for Democratic Reforms (ADR) highlighted that more than half of the income of four major national political parties in 2021-22 came from donations through electoral bonds. The Bharatiya Janata Party (BJP) received the highest amount of Rs 1,033.70 crore, followed by the Trinamool Congress (TMC) with Rs 528.143 crore. The Indian National Congress received Rs 236.09 crore, and the Nationalist Congress Party (NCP) received Rs 14 crore.

Between 2018 and 2022, the Bharatiya Janata Party (BJP) received Rs 5,270 crore as donations, the Congress received Rs 964 crore, and the Trinamool Congress (TMC) received Rs 767 crore through electoral bonds, according to the ET report.

According to Vedanta's latest annual report, the company has invested $1.2 billion in growth capital expenditure during FY23. Furthermore, it has committed an additional $1.7 billion in FY24 for various growth projects. In the same fiscal year, Vedanta Limited, a subsidiary, secured mining licenses for several resources including the Bicholim iron ore block in Goa, Sijimali bauxite and Ghogharpalli coal blocks in Odisha, and Kelwar Dabri in Chhattisgarh.

Vedanta Resources (VRL), the parent company based in the UK, has faced media attention regarding $4.2 billion in payment dues in the current fiscal year. As of June 2023, VRL has paid $2 billion of its liabilities, with the remaining amount due on January 21, 2024.