Demerger likely in FY26, current focus on co’s restructuring: Vedanta Resources CEO

New Delhi: Vedanta Resources CEO Deshnee Naidoo on Tuesday expressed confidence that the demerger of Vedanta Ltd, its Indian arm, will be completed in the current financial year. She said her present focus is on restructuring the organisation to function as if it were already demerged.

The NCLT is set to hear Vedanta Ltd’s demerger proposal on Wednesday. “We’re hoping tomorrow’s hearing will be a step forward in the approval process,” Naidoo said.

She noted that the matter concerning Talwandi Sabo Power Ltd (TSPL) had been resolved. The NCLAT recently cleared TSPL’s separation from Vedanta Ltd, overturning a lower court’s order that stalled the plan.

The decision followed a September 11 settlement between TSPL and creditor Sepco Electric Power Construction Corp of China, which had objected to the demerger citing unpaid dues of Rs 1,251 crore.

Naidoo also clarified that market regulator SEBI had raised no objections to the current scheme, though it had sought additional information on the proposed base metals carve-out. That plan has since been dropped from the revised structure.

The demerger is expected to create independent entities for Vedanta’s major business verticals, enhancing operational clarity and unlocking shareholder value. Vedanta had initially proposed forming six entities—Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. However, it later revised the plan, choosing to retain the base metals undertaking within the parent company.