Vedanta clarifies on Odisha land allotment issue; check stock reaction

Vedanta Ltd on Tuesday issued a clarification on a news report titled "Odisha cancels 28.8 acres of land allotted to Vedanta over non-utilisation".

In its regulatory filing, the Anil Agarwal-led mining company said, "In this regard, please note that the subject land comprises non-contiguous parcels representing less than 1 per cent of the total land holding of the aluminium operations at Jharsuguda."

It also stated, "Pursuant to the demerger, these land parcels form part of the aluminium undertaking transferred to Vedanta Aluminium Metal Ltd (VAML). However, pending completion of the formalities for transfer/endorsement of the underlying lease deeds in favour of VAML, the leasehold rights continue to stand in the name of Vedanta Limited (VEDL)."

Vedanta added, "There have been exchanges of correspondence between IDCO (Industrial Infrastructure Development Corporation) and the Company regarding alleged non-utilisation of the subject land, to which the Company has responded from time to time and appropriate steps are being taken in relation to resumption/re-allotment of the subject land."

The company also said, "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."

Vedanta further stated, "We wish to reiterate that the Company is and will continue to comply with SEBI Listing Regulations and keep the stock exchange(s) duly informed of all material information / events, including price sensitive information(s), in accordance with the applicable provisions."

Meanwhile, Vedanta shares traded marginally lower on Tuesday. At the last check, the stock was down 0.22 per cent at Rs 245.10.