Vedanta Ltd's aluminium plant in Jharsuguda, Odisha, is under regulatory scrutiny by the state's Water Resources department regarding its water sources and drawal history. This follows a complaint alleging unauthorised groundwater extraction and previous financial demands for illegal water use, with the National Green Tribunal also seeking responses on environmental concerns.
The demerger of Vedanta's four new entities - Vedanta Aluminium Metal, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron & Steel - has led to a 16% appreciation in aggregated market capitalisation, with Vedanta Aluminium Metal identified as a likely near-term top performer due to its scale, low production costs, and favourable commodities cycle.
The Odisha government has issued a notice to Vedanta Aluminium Limited, Jharsuguda, demanding 233.11 crore for allegedly extracting over 30 lakh cubic metres of water monthly from the Bheden river system without authorisation between May 2025 and April 2026, a charge the company denies, claiming compliance with existing agreements.
Vedanta, a conglomerate in mining and metals, has seen a surge in its share price on the back of multiple triggers. Its demerger appears to be on track, a strong non-ferrous commodity cycle is boosting margins, and silver bulls are interested in Hindustan Zinc, its subsidiary.
However, the proposal is yet to be placed before the State Level Single Window Clearance Authority. Sources said the environmental 'carrying capacity' study being commissioned by the Orissa State Pollution Control Board in the Sambalpur-Jharsuguda belt and the state government's reported reluctance to provide more bauxite mines to VAL are delaying matters.
The state government's water resources department has alleged the company's Jharsuguda unit has not paid Rs 10.94 crore (Rs 109.4 million) of its bills, since 2008.
With a robust outlook for mineral-led growth in India, Anil Agarwal-led Vedanta Limited is looking to invest up to $20 billion across its businesses, which includes doubling of silver production and steel capacities. In a virtual press conference had last month, Agarwal said the company planned a capex of $5 billion over a period of three years. The company has not given a timeline for $20-billion investment.
Maytas Infra was entrusted with the task of constructing a township colony at Rs 233 crore (Rs 2.33 billion) in Jharsuguda following a contract in March 2008, a Vedanta official told PTI.
The Anil Agarwal promoted Vedanta Aluminium (VAL) plans to invest a whopping Rs 60,000 crore in aluminium, alumina and power sector in Orissa by 2013.
The next auction for bauxite blocks in Odisha may see heightened interest with Adani Group charting an entry into alumina refining and existing players looking to boost capacity. Hemant Sharma, principal secretary, Odisha industries department, said that three bauxite blocks have been scheduled for auctions this year. Adani Group - which will be setting up a 4-MMTPA alumina refinery and may enter aluminium production - is expected to bid for mines, though raw material linkages shall be available from Odisha Mining Corporation (OMC).
Verdict to decide fate of Vedanta Aluminium's Rs 40,000-cr projects in Odisha that will source bauxite from Niyamgiri.
Major corporates are staring at an uncertain future after investing substantially on their projects
The uptick in prices ranging from steel to wheat could benefit lots of commodity-based companies -- from State-owned SAIL to the agro exporters.
All this is happening at a time when aluminium prices in the world market are firming up.
