Mining and metals conglomerate Vedanta Ltd. has issued a clarification regarding recent news reports concerning the cancellation of a land allotment in Odisha. The company stated that the affected land parcels constitute a minor portion of its overall holdings and will not impact its aluminium operations in Jharsuguda.
Vedanta Addresses Land Cancellation Reports
In a regulatory filing, Vedanta addressed reports titled "Odisha cancels 28.8 acres of land allotted to Vedanta over non-utilisation." The Anil Agarwal-led company confirmed that the subject land comprises non-contiguous parcels, representing less than one percent of the total land holding for its aluminium operations at Jharsuguda.
Vedanta emphasized, "Considering the limited extent of the land and the fact that the matter has no impact on the operations, the matter is not considered material."
Ongoing Discussions and Demerger Details
The company further explained that pursuant to a demerger, these land parcels were transferred to Vedanta Aluminium Metal Ltd (VAML). However, due to pending formalities for the transfer of underlying lease deeds, the leasehold rights continue to stand in the name of Vedanta Limited (VEDL).
Vedanta acknowledged ongoing correspondence with the Industrial Infrastructure Development Corporation (IDCO) regarding alleged non-utilisation of the land. The company stated it has responded to IDCO from time to time and is taking appropriate steps for the resumption or re-allotment of the land.
Meanwhile, Vedanta shares traded marginally lower on Tuesday following the news. The company reiterated its commitment to complying with SEBI Listing Regulations and keeping stock exchanges informed of all material information and events.