Diversified Metals
Legal1 April 2026 at 04:11 pm

Vedanta Ltd Subsidiary Faces Rs. 33 Crore Environmental Compensation for Not Meeting Crop Residue Blend Mandate

AI Summary

Vedanta Ltd announced that its subsidiary, Talwandi Sabo Power Limited (TSPL), has received a direction from the Commission for Air Quality Management in National Capital Region and Adjoining Areas (CAQM) to deposit an environmental compensation of Rs. 33,02,56,800. The direction was issued under Rule 3 of Environment (Utilization of Crop Residue by Thermal Power Plant) Rules, 2023 read with Section 12 of CAQM Act, 2021, allegedly for not achieving a mandatory five percent blend of pellets or briquettes made of crop residue along with coal for FY 2024-25. TSPL is expected to file an appeal before the appropriate forum within the prescribed timeline, aiming for a favorable outcome and does not anticipate any material financial impact on TSPL or the Company.

Key Highlights

  • Vedanta Ltd's subsidiary, Talwandi Sabo Power Limited (TSPL), has been directed to pay an environmental compensation of Rs. 33,02,56,800 by the CAQM.
  • The direction was issued due to TSPL's alleged failure to meet the mandatory five percent blend of crop residue pellets or briquettes with coal for FY 2024-25.
  • TSPL plans to challenge the CAQM's direction in an appropriate forum within the prescribed timeline.
  • The company expects a favorable outcome and does not foresee any significant financial impact on TSPL or Vedanta Ltd.
  • The CAQM's direction was received on 01.04.2026 through email.