28th Feb 2005 13:18
Vedanta Resources PLC28 February 2005 28 February 2005 Vedanta Resources plc Change in Government Duties Vedanta Resources plc ("Vedanta") notes that in today's Indian Budget, theGovernment of India announced several changes that will impact the company.Import duties on metals were brought closer to those in other ASEAN countriesand had largely been anticipated. Import duties on aluminium, copper and zinc were reduced from 15% to 10%, onlead from 15% to 5% and on alumina from 20% to 10%. These duties only impactdomestic sales and for the year to 31 March 2005 the reductions will have nomaterial impact. The decline had already been included in our assumptions forthe year ending March 2006. Corporate tax has been reduced from 35% to 30%, though there has been anincrease in a corresponding surcharge and some reductions in capital allowances.It is anticipated that the impact of this will be broadly neutral. The budget was strongly supportive of further spending on infrastructure andencouraging investment in the mining industry. Anil Agarwal, Chief Executive Officer of Vedanta Resources plc, commented, "Wewelcome this progressive budget. The reduction in duties is part of a generaltrend of liberalisation to stimulate growth and demand in the Indian economy.The focus on infrastructure and incentives for capital investment should alsolead to strong long term demand for all our metals and gives a healthybackground for our extensive programme of capacity expansion". For further information, please contact: John Smelt, Head of Investor Relations Tel: +44 20 7499 5900Vedanta Resources plc +44 787 964 2675 James Murgatroyd Tel: +44 20 7251 3801Robin WalkerFinsbury Notes to Editors: Vedanta is a London listed diversified metals and mining group. Our principaloperations are located throughout India, with further operations in Zambia andAustralia. The major metals produced are aluminium, copper, zinc and lead. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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