The National Company Law Tribunal (NCLT) has sanctioned the Composite Scheme of Arrangement between Vedanta Limited and its various subsidiaries. The approval, dated December 16, 2025, facilitates the demerger of Vedanta’s aluminium, power, oil and gas, and iron and steel businesses into separate entities, aiming to unlock value and attract diverse investors. This corporate restructuring is set to streamline operations and enhance focus on core business segments.
Scheme Sanctioned by NCLT
The National Company Law Tribunal (NCLT) has approved the Composite Scheme of Arrangement involving Vedanta Limited and its subsidiaries. The order was officially passed on December 16, 2025, paving the way for the restructuring of the conglomerate.
Details of the Arrangement
The sanctioned scheme involves a complex demerger, separating Vedanta’s key business segments into distinct, independent entities. These include:
- Vedanta Aluminium Metal Limited
- Talwandi Sabo Power Limited
- Malco Energy Limited
- Vedanta Iron and Steel Limited
This restructuring will allow each entity to operate with greater focus, attract specialized investment, and unlock inherent business value.
Order Specifics and Directions
As part of the approval, Vedanta Limited is directed to:
- Update details regarding the removal of charges on the RoC website.
- Furnish a Corporate Guarantee, ensuring Vedanta Limited will cover liabilities if Malco Energy Limited cannot meet obligations under specific contracts.
Compliance with these directives must be completed within two months of the order or before the scheme’s effective date.
Source: BSE
