Vedanta Limited has given its approval to a ₹200 crore contribution to the political parties. The company’s board has also given its nod to reinstating the unutilised limit of ₹57 crore, that was agreed in June last year, for contributions to the political parties, The Economic Times reported.
According to the board resolution of Vedanta, the company’s chairman Anil Agarwal and vice chairman Navin Agarwal are authorised to decide the quantum of political “either directly or through electoral trust and in any form including subscription to electoral bonds”, the ET report added.
The Vedanta board’s resolution was passed on November 4, two days before the launch of the 29th tranche of electoral bond sales. The electoral bond sales had ended on November 20 amid assembly elections in Madhya Pradesh, Rajasthan, Chhattisgarh, Mizoram and Telangana, the report added.
As per the ET report, Vedanta has contributed ₹457 crore to political parties through electoral bonds and in this financial year alone, it donated ₹155 crore.
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What are electoral bonds?
The electoral bonds scheme was notified in 2018, and was pitched as an alternative to cash donations made to political parties as part of efforts to bring transparency in political funding.
The electoral bonds may be purchased by any citizen of India or entity incorporated or established in the country. An individual can buy electoral bonds, either singly or jointly with other individuals.
Only the political parties registered under Section 29A of the Representation of the People Act, 1951 and which secured not less than one per cent of the votes polled in the last Lok Sabha or state legislative assembly election are eligible to receive electoral bonds.
About Vedanta
Founded by Anil Agarwal, Vedanta is a leading natural resources and technology conglomerate with operations across India, South Africa, Liberia and Namibia. It also has interests in oil and gas, zinc, aluminium, iron ore, copper, steel, iron alloys, nickel, semiconductor and glass, and power, according to the company’s website. Vedanta Limited’s market cap is ₹96,554 crore, as per the Bombay Stock Exchange (BSE).
(With PTI inputs)