Vedanta’s Anil Agarwal won a big victory by defeating the government, what is the case of ₹ 9545 crore

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New Delhi: Veteran mining king and billionaire businessman Anil Agarwal has won a big victory against the government. Vedanta owner Anil Agarwal has won a big win in the case of 9545 crores. Vedanta has won the arbitration case against the government for not accepting the cost of 9545 crores. In fact, the government demanded more payment from Vedanta’s Rajasthan Oil and Gas Fields, while Anil Agarwal’s company said it spent Rs 9,545 crore.

what is the whole matter

Mining tycoon Anil Agarwal-led Vedanta Ltd has won an arbitration case against the government for non-acceptance of cost of $1.16 billion. The government had demanded more payments from the company’s Rajasthan oil and gas fields. Vedanta, on the other hand, had said Rs 9,545 crore was spent on certain fixed costs. The government had reallocated some of the cost of the oil block and rejected a 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 the costs before sharing profits in a fixed ratio with the government. If a part of the cost is negated, it will lead to higher profits and the government will get a higher share. Vedanta challenged this demand before the arbitration tribunal. Vedanta told the stock market, “The company has received an arbitration order dated August 23, 2023.” The company, however, did not give further details of the arbitration award, saying it was reviewing the award and evaluating its financial impact. Vedanta in its latest annual report had stated that its financial impact is up to Rs 9,545 crore.

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