Vedanta Group, one of India’s largest mining and metals companies, has donated ₹97 crore to the Bharatiya Janata Party (BJP) in the financial year 2024-25 (FY25), as per its latest annual report. This marks a sharp rise from ₹26 crore donated in the previous year (FY24), showing a nearly four-fold increase in political contributions to the ruling party This major jump in donations has sparked interest among political observers, economists, and the general public. Let’s understand the details of this development in simple words.
What Does the Annual Report Say?
The Vedanta Group’s annual report for FY25 clearly mentions that the company donated ₹97 crore to the BJP through electoral bonds. These bonds are a way for companies and individuals to donate money to political parties without revealing their identity to the public.
In comparison, Vedanta had donated only ₹26 crore to the BJP in FY24, which means the donation has increased by more than 270% in just one year.
What Are Electoral Bonds?
Electoral bonds are a type of financial instrument introduced by the Government of India in 2017. These are issued by the State Bank of India (SBI), and donors can purchase them and donate to registered political parties. The identity of the donor is kept confidential from the public, although the government and the bank may have access to this data.
This method of political funding has been controversial, as many critics believe it lacks transparency and can allow big corporates to influence political decisions behind closed doors.
Why Did Vedanta’s Donation Increase?
There is no official statement from Vedanta explaining why the donation increased so much in FY25. However, experts believe that companies often donate more to the ruling party to stay in the government’s good books, especially if they have large projects that require approvals or support.
Vedanta is a big player in mining, oil, and gas sectors, which are heavily regulated by the central government. So, increasing donations to the BJP may be seen as a way to maintain good relations.
Overview Table: Vedanta’s Political Donations to BJP
| Financial Year | Donation Amount to BJP | Mode of Donation |
| FY24 | ₹26 crore | Electoral Bonds |
| FY25 | ₹97 crore | Electoral Bonds |
| Increase (%) | ~273% | — |
Vedanta and Political Funding
Vedanta has been donating to political parties for many years, mostly through electoral bonds. In fact, it is among the top donors in India when it comes to corporate political contributions. The company has often donated more to the ruling party, regardless of whether it is the BJP or the Congress.
This pattern of political donations is common in India. Many big companies give large amounts to the party in power to keep a smooth relationship with the government.
Public and Political Reaction
The rise in Vedanta’s donation to BJP has raised eyebrows, especially among opposition parties and civil society groups. Critics argue that such large donations give big businesses too much influence over government policies. They say that this creates an unequal playing field where common people and small businesses have little voice. Some activists have also demanded a ban on electoral bonds or at least more transparency, such as publishing donor names.
On the other hand, BJP supporters and some economists say that electoral bonds are better than cash donations and help in cleaning political funding, as the money comes through banking channels.
Supreme Court and Electoral Bonds
It is important to note that the Supreme Court of India is already hearing petitions related to the legality and transparency of electoral bonds. In February 2024, the court struck down the electoral bonds scheme, calling it unconstitutional. As a result, the names of companies and parties involved in bond transactions have been made public. The data released by the Election Commission after the Supreme Court order shows that Vedanta was one of the top donors to the BJP through electoral bonds. This is the same donation that the company reported in its FY25 annual report.
Final Words
Vedanta’s donations to the BJP increasing from ₹26 crore to ₹97 crore in just one year is a big development. It shows how major companies participate in political funding and how electoral bonds became a key tool for such donations. Now, with the Supreme Court ending the electoral bonds scheme, it remains to be seen how companies like Vedanta will donate to political parties in the future — and whether the government will bring a new, more transparent system for political funding.
