Vedanta Limited (VEDL) announced that the National Company Law Tribunal (NCLT), Mumbai, has sanctioned the Scheme of Arrangement filed by Talwandi Sabo Power Limited (TSPL) via its order dated January 09, 2026. This sanction pertains to the Scheme of Arrangement presented with the company petition concerning Vedanta Limited, Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited, along with their respective shareholders and creditors, under Sections 230-232 of the Companies Act, 2013.

This development follows earlier intimations made by VEDL on September 16, 2025, and October 18, 2025. The NCLT's order, uploaded on January 09, 2026, signifies a crucial step in the corporate restructuring process. The Scheme of Arrangement, as approved, involves the demerger of the Merchant Power Undertaking of Vedanta Limited to Talwandi Sabo Power Limited. Notably, the demerger of the Base Metals Undertaking into Vedanta Base Metals Limited, initially part of the original scheme, was decided against by the boards of the respective companies on December 20, 2024, and December 23, 2024. The approved scheme is thus a modified version of the original proposal.

The rationale behind the Scheme includes creating focused, independent entities for distinct business segments like aluminium, power, oil & gas, and iron ore. This is expected to allow for enhanced operational focus, attract different sets of investors and partners, and unlock value for shareholders. The NCLT's approval is a significant positive step for Vedanta's strategic restructuring efforts.