Vedanta gets NCLT nod for demerger scheme with Talwandi Sabo Power

Vedanta announced that the National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned a Scheme of Arrangement involving its subsidiaries, including Talwandi Sabo Power Limited (TSPL), Vedanta Aluminium Metal Limited, Malco Energy Limited, Vedanta Base Metals Limited, and Vedanta Iron and Steel Limited.

The order was delivered on January 9, 2026.

The scheme, filed under Sections 230–232 of the Companies Act, 2013, allows for the restructuring of Vedanta’s diversified businesses, including aluminium, power, iron and steel, and base metals, into separate entities.

The arrangement aims to enable focused management, enhance operational efficiency, and provide distinct investment opportunities for shareholders and creditors.

Under the approved scheme, TSPL, a wholly owned subsidiary of Vedanta,

will take over the Merchant Power Undertaking of the demerged company. All related assets, liabilities, and employee obligations, including gratuity, pension, and provident fund benefits, will transfer to TSPL on a going-concern basis.

The scheme had received approval from 100% of secured creditors and 99.99% of unsecured creditors of TSPL during meetings held in November 2025. Observations from the Regional Director and other regulatory authorities were addressed by the company before the final sanction.

Vedanta’s equity shares are listed on the BSE and NSE, and the company noted that the scheme complies with relevant accounting standards and tax provisions under the Income Tax Act, 1961.

The NCLT order formalises the restructuring, with the appointed date for the effective transfer of assets and liabilities set as per the scheme.