Vedanta’s Crore Surge: BJP Bags a 4X Windfall in FY25

Image Source: The Economic Times

Mining giant Vedanta Ltd stole the headlines with a dramatic jump in political contributions, led by the ruling Bharatiya Janata Party (BJP), according to its FY25 annual report.

Major Highlights of the Yearly Report
- Vedanta donated Rs 97 crore to the BJP during FY25, almost four times the Rs 26 crore donated in FY24
- Total political contributions were Rs 157 crore, up from Rs 97 crore last year
- Contributions to the Congress party fell to Rs 10 crore from Rs 49 crore in FY24
- Increased strength was given to state parties: Biju Janata Dal got Rs 25 crore (up from Rs 15 crore), and Jharkhand Mukti Morcha got Rs 20 crore (up from Rs 5 crore)

Electoral Trusts and Contextual History
- Vedanta's Janhit Electoral Trust remains one of the most politically active corporate-funded political donation trusts
- Between 2017-2022, Vedanta gave Rs 457 crore in the form of now-revoked electoral bonds, which the Supreme Court held to be unconstitutional last year

Corporate Strategy and Brand Licensing -
Vedanta made Rs 2,397 crore brand and strategic service fees to its parent Vedanta Resources Ltd subsidiary VRIL, up from Rs 2,326 crore in FY24
- Sub-licensing arrangements with Hindustan Zinc Ltd and Ferro Alloy Corporation Ltd have cost Rs 582 crore

Implications
The dramatic increase in BJP contributions and associated decrease in opposition-party funding suggest a deliberate change in Vedanta's political activism and raise questions about corporate involvement in Indian election financing.

Sources: The Hindu Business Line, Telangana Today, Economic Times, NewsBytes, Devdiscourse.