Tamil Nadu govt moves SC for closure of Vedanta’s Tuticorin unit: Media reports

Reacting to this report, shares of Vedanta declined 4% in afternoon trade on Wednesday.

Jan 02, 2019 09:01 IST India Infoline News Service

Shares of Vedanta slipped 4% on Wednesday after media reports said that the Tamil Nadu (TN) government moved the Supreme Court against the order of National Green Tribunal (NGT) allowing the company to re-open Sterlite's Tuticorin unit.

On December 15, NGT had trashed the state government’s order for closure of the plant citing non-sustainable and unjustified as a reason. The plant was at the centre of massive protests over alleged pollution.

In exchange, the state government stated that it will challenge the NGT in the Supreme Court, media reports said. The company, on the other side, has said it would move the Supreme Court to help implementation of NGT order in early January, media reports said.

The case has already been listed for hearing in Madras High Court, Madurai Bench, on maintainability on January 21, 2019.

The court had directed the state government to make its position clear by January 21 on whether it proposes to file an appeal against NGT order.

The Madras High Court had ordered status quo as existed before NGT set aside the state government’s order for closure of the copper unit of the company. Additionally, Madurai Bench had also restrained the Vedanta group company from taking any steps to reopen the unit.

Vedanta Ltd's share price is currently at Rs194, down by Rs8.15 or 4.03%, from its previous close of Rs202.15 on the BSE.

The scrip opened at Rs201 and has touched a high and low of Rs201 and Rs193.05, respectively. So far, 1,63,45,992 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs75,143.08cr.

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