Assam CM meets industry leaders in New Delhi, urged to fulfill Advantage Assam 2.0 commitments

New Delhi [India], May 24 (ANI): Assam Chief Minister Dr Himanta Biswa Sarma on Saturday met top industrialists on the sidelines of ongoing Rising North East Summit 2025 in New Delhi and asked them to fulfill their commitments made during Advantage Assam 2.0 Investment and Infrastructure Summit in Guwahati, a release added.
The Chief Minister met the Chairman of Vedanta Group, Anil Agarwal at his official residence here on Friday evening and asked him to operationalise the group's investment commitment made during Advantage Assam Summit held in February this year, the release by the state added.
As per the release, Chairman of Vedanta, Agarwal said the group is wholly committed to Assam's growth journey and is keen to expand its footprint in the State's hydrocarbon sector.
Later, taking to X (formerly Twitter), the Chief Minister Dr Himanta Biswa Sarma wrote, 'Today in New Delhi, I met the very enterprising Chairman of @Vedanta_Group, @AnilAgarwal_Ved Ji. We spoke on operationalising the group's investment commitment made during #AdvantageAssam2. Vedanta is keen to expand its footprint in the state's hydrocarbon sector.'
The Chief Minister met Managing Director of ITC Hotels, Anil Chadha at his residence and discussed the potential of investment in the hospitality sector.
Chadha told the Chief Minister Sarma that his group is very keen in exploring opportunities in the hospitality sector in Assam.
Informing about the development, CMO Assam, tweeted, 'Anil Chadha, MD, @ITCHotels called upon HCM Dr @himantabiswa in New Delhi today. They discussed the potential of investments in Assam's hospitality sector as Chadha expressed keen interest in exploring opportunities for expansion in the state.'
Assam's investor summit, Advantage Assam 2.0 secured investment commitments worth Rs 5.18 lakh crore over the next five years.
The release added that CM Sarma is closely monitoring the investment commitments made by different companies during the Advantage Assam 2.0. He will hold one-to-one meeting with the industry leaders in the national capital on May 26.
'The Chief Minister has started individual discussions with the companies about how to go about realising the investment on the ground, what kind of incentives they might need, land they would need. We will prepare the preparatory roadmap over the next six months,' a senior official privy to the development said.
'If even a significant portion of the pledged investments materialises, Assam could emerge as a leading industrial hub in the Northeast and beyond. Therefore, the focus now shifts to implementation and execution, ensuring that these investments translate into job creation, infrastructure development, and long-term economic benefits for the state,' the official added.
'The roadmap will focus on addressing key challenges such as land allocation, ease of doing business, and incentive structures to ensure that projects move from paper to reality,' the official added.
To achieve the goal, the Government of Assam plans to carefully analyse investment proposals in the current financial year and work toward a comprehensive roadmap within the next six months, the release added. (ANI)

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Hindustan Times

an hour ago

• Hindustan Times

Oil supply via Strait of Hormuz unlikely to be hit despite Iran-Israel war

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Mint

2 hours ago

• Mint

How Vedanta's debt burden turned Hindustan Zinc into a net-debt company?

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While this consolidation was positioned as a strategic cleanup, it left Vedanta carrying the debt burden. However, VRL still needed a substantial amount of cash to repay the loan. As a result, VRL became heavily dependent on two things to stay afloat: dividends from Vedanta and regular refinancing of its liabilities. Refinancing was cheaper then due to lower interest rates. Rising rates, downgrades, and the dividend shortcut However, that model started to crack after 2022. As global interest rates rose, refinancing became more expensive. Bond yields surged, and rating agencies downgraded VRL, limiting access to fresh and cheap capital. By FY22, VRL's net debt stood at $8.9 billion, and $2.75 billion was due for repayment in FY23 alone. This is when fears of default gained momentum. To avoid a cash crunch, Vedanta ramped up dividend payouts. In FY23 alone, Vedanta paid ₹37,730 crore in dividends. Part of this came from its balance sheet, but the lion's share came from HZL. HZL's cash was the first to go. Vedanta owned 64.9% of HZL till June 2024, and HZL has historically been a cash-rich business. In FY23, HZL declared a dividend of ₹75.5 per share, amounting to ₹32,000 crore. This payout was 3X its FY23 profit of ₹10,520 crore and far above its three-year average of ₹18.6 per share. Also Read: When diversification backfires: Four Indian companies walking a fine line Vedanta received ₹20,709 crore, and with VRL holding 68.1% of Vedanta, its indirect gain stood at ₹25,717 crore, providing a much-needed liquidity boost. But this came at a cost, as HZL's balance sheet weakened. Its cash and cash equivalents fell from ₹20,800 crore in FY22 to ₹11,300 crore in FY23, while reserves dropped from ₹33,437 crore to ₹12,097 crore. On Vedanta's side, it fell from ₹32,700 crore to ₹21,900 crore, and reserves declined from ₹65,011 crore to ₹39,051 crore. The payouts didn't stop, even as cash reserves shrank HZL moderated its dividend in FY24, paying ₹2,535 crore, of which ₹1,646 crore went to Vedanta. At the same time, Vedanta declared a ₹11,000 crore payout, of which VRL received ₹6,815 crore. In FY25, it again paid a dividend of ₹9,585 crore to VRL. This underscored its continued reliance on dividends to service VRL's debt. That trend continues in FY26 as well, with both companies announcing their first interim dividends. HZL declared ₹10 per share, amounting to ₹4,225 crore, while Vedanta announced ₹7 per share, totalling ₹2,737 crore. Meanwhile, VRL also began offloading stakes to reduce debt. Promoter shareholding in Vedanta fell to 56.4% by FY25, from 69.7% in March 2022. At the same time, in HZL, the promoter's shareholding has decreased to 63.4%, down from 64.9%. This fiscal, too, Vedanta sold another 1.6% stake in HZL for ₹3,028 crore on 18 June. The proceeds will primarily be used to strengthen its balance sheet. Short-term fix, long-term pressure remains These measures helped. VRL's net debt declined from $8.9 billion in March 2022 to $7.2 billion by March 2023 and $4.9 billion in FY25. The group net debt-to-Ebitda ratio improved to 2x, from 3.3x in FY20. VRL now targets another $2 billion in deleveraging over the next three years and aims for leverage below 1x. Ebitda stands for earnings before interest, taxes, depreciation, and amortization. But the problem hasn't disappeared. The remaining $4.9 billion in debt repayment is spread over the next nine years till FY34. Of this, $1 billion is due in FY26, $0.7 billion in FY27, $0.15 billion in FY28, and $0.3 billion in FY29. This means that consistent dividend payouts from Vedanta will remain key to VRL's debt strategy. Borrowings rise despite strong cash flows While these payouts helped VRL reduce debt, they also led to rising borrowings at both Vedanta and HZL. Both operate in capital-heavy sectors that need regular capex, and high dividend payouts limit their ability to fund growth internally. Vedanta's total debt rose to ₹73,853 crore in FY25, from ₹53,109 crore in FY22. HZL's borrowings more than tripled to ₹10,651 crore, from ₹2,823 crore during the period. The debt surged despite healthy free cash flow generation. Vedanta generated total free cash flow of ₹60,800 crore, and HZL ₹40,700 crore in the four years ending FY25. Their cash and cash equivalents also fell. Vedanta cash stood at 20,700 crore in FY25, down from 32,700 crore in FY22, and HZL fell to ₹9,300 crore from 20,800 crore. Also Read: Why some Indian companies are paying dividends despite posting losses Even so, both businesses remain fundamentally sound. Vedanta's net debt-to-Ebitda ratio stood at a manageable 1.2x in FY25, down from 1.3x in FY23. It aims to bring it down to below 1x in the near term. HZL, though, has seen a quiet shift. From a ₹17,966 crore net cash surplus in FY22, it's now moved to a modest net debt of ₹1,169 crore. It's not a cause for concern just yet, but it does reflect how much cash has been gradually pulled out over time. HZL aims to become net-debt free in FY26. What's next? Fundamentally, both continue to churn profit. Vedanta's net profit rose 172% from last year to ₹20,535 crore in FY25, albeit on a low base. HZL's profit rose 32% to ₹10,279 crore. To simplify its debt structure, Vedanta is demerging its business into five separate companies. Debt will also be allocated among them, though the proportions are not yet disclosed. This move comes after Vedanta failed multiple times to delist from stock exchanges. Vedanta avoided a crisis, but not without cost HZL used to be a net-cash company. Now, it carries some debt. While its core operations remain strong, the financial cushion it once had is now smaller. For minority shareholders, the worry isn't about immediate risks, but whether the company will maintain financial discipline over time. When a promoter continually draws on a listed company's cash to settle its debt issues, it naturally raises concerns about governance. Vedanta may have kept its no-default promise, but in the process, it quietly turned its operating companies into a source of funding. For more such analysis, read Profit Pulse. Madhvendra has over seven years of experience in equity markets and has cleared the NISM-Series-XV: Research Analyst Certification Examination. He specialises in writing detailed research articles on listed Indian companies, sectoral trends, and macroeconomic developments. Disclosure: The writer does not hold the stocks discussed in this article. The purpose of this article is only to share interesting charts, data points, and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educational purposes only.

Time of India

3 hours ago

• Time of India

Oman income tax: 5% levy on high earners from 2028; 99% population to remain unaffected

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