The Business Bytes
THEBUSINESSBYTES BUREAU
BHUBANESWAR, APRIL 13, 2025
Vedanta Ltd. has been directed by the Odisha State Pollution Control Board (SPCB) to deposit an environmental compensation of ₹71.16 crore over alleged unauthorised disposal of fly ash from its operations. The company disclosed the development in a regulatory filing to the Bombay Stock Exchange (BSE), noting that the demand stems from what it termed as “allegations” regarding fly ash management practices. The notice, dated 10 April 2025, was served under the Fly Ash Notification issued by the Ministry of Environment, Forest and Climate Change (MoEF&CC).
Fly ash, a fine particulate by-product generated from coal combustion in thermal power plants, is known to pose substantial environmental risks if not disposed of responsibly. The imposition of the penalty underscores the increasing regulatory focus on enforcing environmental standards and curbing industrial pollution.
However, Vedanta has categorically denied the allegations, asserting that the order did not take into account its existing environmental safeguards or its past submissions to the authorities. “The company is hopeful of a favourable outcome and does not expect the order to have any material financial impact,” Vedanta stated. It also cited internal fact-verification processes as the reason behind the delay in public disclosure.
Vedanta further indicated its intention to challenge the order through appropriate legal channels, underscoring its commitment to environmental compliance and regulatory transparency.
The development comes amid Vedanta’s continued expansion in Odisha’s industrial landscape. In March 2024, the company received approval for a ₹40,991 crore greenfield aluminium smelter project in Rayagada district. The smelter is expected to generate 7,200 jobs and is part of Vedanta’s larger ₹91,528 crore investment plan in Odisha, which also includes a state-of-the-art alumina refinery.
Despite the current regulatory hurdle, Vedanta reiterated its commitment to sustainable industrial growth in the state. The company emphasised that it remains aligned with Odisha’s developmental vision and is confident that its ongoing and future projects will further bolster the region’s economic and employment potential.
