ET reported that Vedanta Resources Plc may reduce its investment in India by USD 5.1 billion and resort to cut in production in response to falling metal prices and slump in demand as it had an over 9% dip in profit for the H1 of FY 2009.

The company said in a statement said that it has taken several initiatives to lower the size of investment lined up for a number of projects in India, including its aluminum and alumina project in Orissa. The company may reduce capital expenditure by 20% on the alumina, aluminum and zinc lead expansion projects in India, amounting to USD 1.5 billion.

Mr Agarwal said that the company had planned to invest about USD 14 billion in the country for over 4 years. He said that "We have reviewed our capital expenditure program and believe that we have the opportunity to reduce the announced investments by USD 5.1 billion through various initiatives."

Mr Naveen Agarwal executive vice chairman of Vedanta Resources said that "We have cut the cost of our projects by reducing our capital expenditure without impacting the size of our projects including the 2.6 million tonnes aluminum plant or 1 million tonnes zinc and copper projects."

The statement said that the mining major has also deferred its USD 2 billion investment in the 1,980 MW captive power plant at Jharsuguda. It added that the company may also lower the capital expenditure in the USD 2.1 billion Talwandi Sabo power project in Punjab to USD 500 million.

Moreover, the company said that it would also resort to temporary cuts in production to bolster the falling prices of metals, which have plummeted due to the slump in demand.