Home / Business and Economy / Vedanta Power Demerger Gets Green Light
Vedanta Power Demerger Gets Green Light
10 Jan
Summary
- NCLT approved Vedanta's power business demerger on Friday.
- Talwandi Sabo Power Ltd. settled with creditor Sepco Electric.
- Sepco had objected over alleged non-payment of Rs 1,251 crore.
The National Company Law Tribunal (NCLT) on Friday granted final approval for Vedanta Ltd.'s demerger of its power business, a key move in the mining giant's corporate restructuring efforts. The Mumbai bench of the tribunal sanctioned the scheme as proposed by Talwandi Sabo Power Ltd. (TSPL) and Vedanta.
This significant decision came after TSPL successfully resolved objections from China's Sepco Electric Power Construction Corp., a creditor. Sepco had previously opposed the demerger due to alleged non-payment of dues totaling Rs 1,251 crore, a financial dispute that has now been settled, paving the way for the demerger to proceed without further impediments.
Talwandi Sabo Power Ltd. is an active participant in the energy sector, engaging in the generation, transmission, and distribution of power. Its services cater to state electricity boards, power utilities, generating companies, and transmission and distribution entities, underlining the strategic importance of this demerged power business within the larger Vedanta conglomerate.
