Outing the Oligarchy - International Forum on Globalization

— INDIVIDUALS OF UNDUE INFLUENCE —
ANIL AGARWAL, INDIA/U.K.
$3.5 BILLION [AS OF OCTOBER 2011]
Wealth: Anil Agarwal is <strong>the</strong> founder and chair of Vedanta Resources Corporation, an international mining
and metals company headquartered in London. It is <strong>the</strong> largest mining and non-ferrous metals company in
India and also has mining operations in Australia and Zambia. The company’s main products are copper,
zinc, aluminum, lead and iron ore. Vedanta is also developing two huge coal-fired power stations in India.
Agarwal’s attempt to buy a 60% stake in Cairn India (owner of <strong>the</strong> country’s biggest onshore oil field) for an
estimated $9.6 billion were blocked after objections were raised by ONGC, <strong>the</strong> state-owned oil exploration
company. 128
Power Networks: Agarwal has a number of powerful friends in Delhi, including Home Minister P.
Chidambaram. Acknowledged as one of <strong>the</strong> country’s smartest and most powerful politicians, Chidambaram
has been one of <strong>the</strong> most effective agents in <strong>the</strong> move to “modernize” <strong>the</strong> country. A radical socialist in his
student days, Chidambaram is now an advocate of <strong>the</strong> Free Market. Chidambaram has been a fervent
supporter of Agarwal’s mining operations, despite Vedanta’s repeated citations for violating environmental
laws. Chidambaram once served under Agarwal as a director on Vedanta’s board and, in 2003, he defended
Agarwal’s Sterlite Industries on tax-evasion charges before <strong>the</strong> Mumbai High Court. 129 Even without
Chidambaram’s support, Agarwal’s repeated claims that he intends to make India <strong>the</strong> world’s leading miner,
has made him an appealing figure to many in government.
Environment: Vedanta has been strongly criticized by human rights and activist groups (including Amnesty
<strong>International</strong>) due to <strong>the</strong>ir planned mining and smelting operations in <strong>the</strong> Indian state of Orissa. Constructing
and operating <strong>the</strong> site in Niyamgiri Hills would threaten local tribes people and wildlife. 130 In January 2009,
thousands of locals formed a human chain around <strong>the</strong> Niyamgiri Hills to protest plans to start bauxite mining
in <strong>the</strong> area. India’s environment ministry ultimately denied Vedanta’s permit to mine bauxite in Eastern India
after a government report concluded <strong>the</strong> project it would harm local tribal people. Vedanta’s Alumina
Refinery in Lanjigarh also was critiqued by <strong>the</strong> Orissa State Pollution Control Board for causing air pollution
and water pollution. Various Indian government institutions have begun strongly criticizing <strong>the</strong> company.
In 2010, <strong>the</strong> Church of England sold its holding in Vedanta Resources citing <strong>the</strong> company’s low level of
respect for human rights. O<strong>the</strong>r institutions that have divested <strong>the</strong>ir Vedanta stock include <strong>the</strong> Joseph
- 50 -