Vedanta hopes to conclude its five-way split this year

NCLT to hear the petroleum and natural gas ministry's objections to the demerger today

- Subhash Narayan

Billionaire Anil Agarwal's ambitious plan to split the Vedanta group into five listed entities may have been delayed, but the mining-to-metals conglomerate still aims to achieve the milestone this year.

The National Company Law Appellate Tribunal (NCLAT) has cleared the way for Talwandi Sabo Power Ltd's (TSPL) demerger from India-listed Vedanta Ltd, said Deshnee Naidoo, the chief executive officer of the group's London-based parent Vedanta Resources Ltd. Separately, the group expects some progress when the National Company Law Tribunal (NCLT) hears the objections of the ministry of petroleum and natural gas (MoPNG) to the demerger today.

The ministry is concerned that the demerger could hinder its recovery of government dues tied to production and revenue-sharing contracts in Vedanta's oil and gas business. Additional issues include nondisclosure of liabilities, potential revenue inflation in the scheme, and post-clearance modifications.

"We continue to work with ministry and Directorate General of Hydrocarbons (DGH)...We are hoping that (NCLT hearing) will be a step forward," Naidoo told Mint. The group is confident of meeting NCLT norms given that Vedanta shareholders and creditors had largely approved the demerger plan in February and that the tribunal proceedings are procedural, she said.