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Informist, Friday, Jan. 9, 2026

 

--NCLT Mumbai approves demerger of Talwandi Sabo Power from Vedanta

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal Friday approved the demerger of Talwandi Sabo Power Ltd. from Vedanta Ltd. The tribunal said that Vedanta's demerger scheme appeared to be fair and reasonable and not violative of any provisions of law. With this, Vedanta has now received approval from the tribunal for the demerger of its businesses into Vedanta Aluminium Metal Ltd., Malco Energy Ltd., Vedanta Iron and Steel Ltd., and Talwandi Sabo Power Ltd.

 

Vedanta had proposed the demerger of its aluminium, oil and gas, and iron ore and steel businesses into separate companies--Vedanta Aluminium Metal Ltd., Malco Energy Ltd., and Vedanta Iron and Steel. The company had filed a separate application with the National Company Law Tribunal for demerging the power business into Talwindo Sabo Power Ltd., as it was a non-applicant company in the demerger scheme.

 

Talwandi Sabo Power is authorised by its memorandum of association to engage in the business of generation, transmission, and distribution of power for supply to the state electricity boards, power utilities, generating companies, transmission companies, and distribution companies. The authorised share capital of Talwandi Sabo Power is INR 40 billion. The issued, subscribed and paid-up share capital of the company is INR 32.07 billion.

 

In September, the National Company Law Appellate Tribunal had set aside the National Company Law Tribunal's order rejecting the scheme of arrangement for the demerger of Vedanta's wholly-owned subsidiary Talwandi Sabo Power Ltd., following a settlement between the latter and Sepco Electric Power Construction Corp. The appellate tribunal had directed the National Company Law Tribunal to proceed with the demerger application. Earlier, the Mumbai tribunal had in March rejected the scheme for demerger filed by Vedanta's arm Talwandi Sabo over failure to disclose INR-12.51-billion debt to creditor SEPCO Electric Power.

 

In December, the Mumbai tribunal had approved the demerger of Vedanta's business into Vedanta Aluminium Metal, Malco Energy,  and Vedanta Iron and Steel. However, Talwandi Sabo Power's application was still pending in the Mumbai tribunal. Friday, shares of Vedanta ended 1.1% higher at INR 609.85 on the National Stock Exchange.  End

 

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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