By Nikita Periwal
Copyright indiatimes
Vedanta has settled its dispute with Chinese firm Sepco Electric Power Construction Corp, effectively clearing the path for its proposed demerger along operational product lines. The revenue stream-wise demerger, initially scheduled for completion in March this year, is now looking at a September-end deadline.Talwandi Sabo, wholly owned by Vedanta, entered into a settlement deal with SEPCO Electric for resolution of all long-standing disputes relating to the EPC contracts entered between the parties for setting up of a 3×660 MW Thermal Power Project, the company said. It did not disclose any financial details of the settlement.“This settlement agreement provides for a full and final resolution of all claims and counter claims and includes withdrawal of pending arbitration proceedings,” Vedanta said in an exchange filing on Friday.Sepco Electric is a Chinese firm that designs and builds power generation and transmission infrastructure.In March, the Mumbai Bench of the National Company Law Tribunal had rejected the demerger scheme filed by Vedanta’s subsidiary Talwandi Sabo Power citing inadequate disclosures. The demerger was challenged by Sepco Electric Power Construction Corporation, whom Talwandi owed Rs 1,251 crore.Live Events“This marks the closure of legacy disputes and strengthens TSPL’s operational position,” Vedanta said. The settlement was done on September 11.Last month, the Mumbai bench of the NCLT deferred its hearing for the company to September 17. The hearing was deferred after the Ministry of Petroleum and Natural Gas presented its objections in court.Vedanta, led by billionaire Anil Agarwal, had proposed splitting its operations into independent listed companies focusing on aluminium, base metals, iron and steel, oil and gas, and power generation. The company believes that this move will unlock shareholder value.Additionally, the demerger is also expected to allow each independent company to attract specialized investors, strategic partners, and lenders, fostering deeper collaborations and expansion without affecting the broader organization.The board of Vedanta had approved the demerger in September 2023. The company has also received approvals from its secured and unsecured creditors and equity shareholders.Add as a Reliable and Trusted News Source Add Now!
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