Vedanta Resources demerger likely in FY'26, current focus on restructuring of company: Deshnee Naidoo

New Delhi: Vedanta Resources CEO Deshnee Naidoo on Tuesday exuded optimism that the demerger of its Indian arm Vedanta will be completed in the current financial year and stressed that her focus at present is on the restructuring of the company.

The National Company Law Tribunal (NCLT) on Wednesday will hear Vedanta Ltd's proposed demerger of key business verticals into separate entities.

"Yes, I'm very optimistic. I think for me the work right now is actually restructuring the organisation as if we are already a demerged company," she told PTI in an interview.

"We have the next hearing tomorrow, and we're hoping that will be a step forward in the NCLT approval process," she explained.

The matter related to Talwandi Sabo Power Ltd (TSPL) was actually resolved, the CEO said, adding that it is a step forward.

The National Company Law Appellate Tribunal (NCLAT) has cleared the way for Talwandi Sabo Power Ltd's (TSPL) demerger from its parent company Vedanta Ltd, setting aside a lower court's order that put the proposed demerger on hold.

The order came after the counsel for Talwandi Sabo informed the NCLAT that it reached a settlement with China's Sepco Electric Power Construction Corp (Sepco) on 11 September. Sepco is one of the creditors of TSPL that objected to the demerger for alleged non-payment of dues worth Rs 1,251 crore.

Replying to a question, she said, "I just want to say that SEBI has no objections to the current scheme, but they've wanted more information relating to the base metals carve-out that is now not going ahead through the one plus four demerger." The approval of the demerger proposal will pave the way for the company's various business verticals to become separate entities.

The mining firm had earlier revised its demerger plan and decided to retain its base metal undertaking within the parent firm.

Vedanta had earlier said post-demerger its existing businesses will be structured in six independent companies -- Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. However, later it revised the plan.