NCLT Approves Vedanta's Strategic Demerger Plan

The National Company Law Tribunal (NCLT) has approved Vedanta's demerger plan, facilitating the group's division into sector-focused entities across aluminium, oil and gas, power, and iron and steel. Despite opposition from the Ministry of Petroleum and Natural Gas citing financial concerns, Vedanta is committed to proceeding with the demerger.

The National Company Law Tribunal (NCLT) has given the green light to Vedanta's demerger scheme, allowing the company to separate its business into distinct sector-specific units. This marks a significant step towards Vedanta's strategic transformation into focused entities in aluminium, oil and gas, power, and iron and steel.

The decision, announced by the Mumbai bench of the tribunal, follows hearings that commenced last November. Despite concerns from the Ministry of Petroleum and Natural Gas regarding potential financial risks and asset disclosures, Vedanta is keen to advance its demerger plans.

The company, led by Anil Agarwal, stated that it has adhered to all necessary regulatory compliance and received approval from the Securities and Exchange Board of India. The demerger includes plans to list separate entities such as Vedanta Aluminium, Oil & Gas, Power, and Iron and Steel, while retaining its zinc and silver interests through Hindustan Zinc.

(With inputs from agencies.)