Mining conglomerate Vedanta has started a major cost cutting drive at its iron ore business in Goa amid subdued market sentiments and depressed prices of the commodity in global markets.
The firm led by NRI billionaire Anil Agarwal is expected to resume iron ore mining, after a gap of three years, at its Codli and Bicholim mines in the state next month. It has been allowed to produce 5.5 million tonne (MT) of the commodity.
“Vedanta has gone on a major cost cutting drive at its Goa iron ore business. This includes cutting 400-450 jobs through Voluntary Retirement Scheme (VRS) and is also looking for buyers for non-productive land and other properties,” a person in know of the development said.
While, around 400-450 jobs have been cut, which includes close to 100-120 permanent positions, the source said there could be more job cuts in the pipeline.
According to an industry source, Vedanta is looking at prospective buyers to dispose-off its non-productive land assets to cut losses. “They (Vedanta) are also looking to rent two-three floors at their Goa head office in Panaji – SesaGhor. Besides, it has lot of land assets that are not of use and it is looking at liquidating them to adjust costs,” the source added.
Market insiders also attributed the major cost cutting drive to the three year-long mining ban in Goa as well as the weak market for commodities. Almost all the miners in the state are under huge losses.
The firm led by NRI billionaire Anil Agarwal is expected to resume iron ore mining, after a gap of three years, at its Codli and Bicholim mines in the state next month. It has been allowed to produce 5.5 million tonne (MT) of the commodity.
“Vedanta has gone on a major cost cutting drive at its Goa iron ore business. This includes cutting 400-450 jobs through Voluntary Retirement Scheme (VRS) and is also looking for buyers for non-productive land and other properties,” a person in know of the development said.
While, around 400-450 jobs have been cut, which includes close to 100-120 permanent positions, the source said there could be more job cuts in the pipeline.
According to an industry source, Vedanta is looking at prospective buyers to dispose-off its non-productive land assets to cut losses. “They (Vedanta) are also looking to rent two-three floors at their Goa head office in Panaji – SesaGhor. Besides, it has lot of land assets that are not of use and it is looking at liquidating them to adjust costs,” the source added.
Market insiders also attributed the major cost cutting drive to the three year-long mining ban in Goa as well as the weak market for commodities. Almost all the miners in the state are under huge losses.
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