Vedanta Gets NCLT Approval for Business Restructuring Across Metals and Power

12 Jan 2026 , 12:16 PM

Vedanta Ltd said that the National Company Law Tribunal, Mumbai Bench, has sanctioned a Scheme of Arrangement involving several of its subsidiaries, including Talwandi Sabo Power Limited, Vedanta Aluminium Metal Limited, Malco Energy Limited, Vedanta Base Metals Limited, and Vedanta Iron and Steel Limited. The NCLT order approving the scheme was pronounced on January 9, 2026.

The scheme has been filed under Sections 230 to 232 of the Companies Act, 2013, and provides a framework for restructuring Vedanta’s diversified business segments. The restructuring covers key verticals such as aluminium, power, iron and steel, and base metals, with the objective of creating separate entities for each business. Vedanta said the proposed reorganisation is aimed at enabling focused management, improving operational efficiency, and offering distinct investment opportunities to shareholders and creditors.

Under the approved scheme, Talwandi Sabo Power Limited, a wholly owned subsidiary of Vedanta, will take over the Merchant Power Undertaking of the demerged company. All assets, liabilities, and employee-related obligations linked to the Merchant Power Undertaking will be transferred to TSPL on a going-concern basis. The employee obligations to be transferred include gratuity, pension, provident fund, and other related benefits.

The scheme received strong creditor support, with 100 percent approval from secured creditors and 99.99 percent approval from unsecured creditors of TSPL at meetings held in November 2025. Vedanta said it addressed all observations raised by the Regional Director and other regulatory authorities before receiving the final sanction from the tribunal.

The company noted that its equity shares continue to be listed on both the BSE and the NSE. Vedanta also clarified that the scheme complies with applicable accounting standards and relevant tax provisions under the Income Tax Act, 1961. The NCLT order formally completes the approval process for the restructuring, with the appointed date for the effective transfer of assets and liabilities to be implemented in accordance with the scheme.

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