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Time of India
3 days ago
- Business
- Time of India
NCLAT stays order against Vedanta's power business demerger
New Delhi: Appellate tribunal NCLAT has granted an interim stay on an order of the National Company Law Tribunal ( NCLT ) rejecting demerger of Vedanta 's power business and its merger with resultant entity Talwandi Sabo Power Ltd (TSPL). The order came as a relief to Vedanta Ltd which is in the process of demerging its businesses into separate entities. In a filing to BSE, Vedanta said the NCLAT order dated May 27, 2025 granted an interim stay on the order passed by the NCLT's Mumbai bench dated March 4, 2025 "to the extent it relates to the rejection of the scheme", subject to fulfilling the conditions mentioned in the order. Vedanta said that it remains committed to its strategic reorganisation plan and continues to work towards unlocking long-term value for all stakeholders. A two-member NCLAT bench said "the issues raised before us need to be considered at length and presently in view of the submissions made the scheme is severable and thus in case the stay is not granted to the impugned order, it may affect the second motion application filed in respect of other three transferor companies pending in different tribunals". The matter has been listed for the next hearing on August 4. Earlier, the Mumbai bench of NCLT had dismissed the petition of TSPL on the demerger scheme after objections were raised by SEPCO, a creditor of TSPL. The NCLT had observed "material facts have not been disclosed by the applicant company, violating Section 230 (2)(a) of the Companies Act, 2013, which in our considered opinion is bound to prejudice the public interest at large". The NCLT's ruling came after China-based SEPCO Electric Power Construction Corporation objected to the demerger, saying the power unit had deliberately excluded their outstanding debt of ₹1,251 crore from the list of creditors. SEPCO alleged that TSPL had concealed the information about its liabilities. "This has been done deliberately to defeat SEPCO's rights," the NCLT had said. According to a Vedanta spokesperson, the NCLT ruling pertained only to the TSPL application and the power business undertaking and does not impact or alter the progress of the other business undertakings proposed to be demerged. SEPCO was listed as an unsecured creditor to the extent of ₹1,251 crore, which would constitute more than 75 per cent of the unsecured debt by value, and as a result of the same, the vote by SEPCO itself would have been against the scheme, potentially impacting the interest of TSPL. The tribunal had said that the non-disclosure of such a significant liability could prejudice the interests of creditors and shareholders, and the valuation of TSPL conducted without factoring in SEPCO's claim was flawed and could impact public interest. The scheme, filed under Sections 230 to 232 of the Companies Act, 2013, involved the demerger of Vedanta's business verticals into five separate entities-- Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, Vedanta Base Metals and Vedanta Iron and Steel. It was aimed to create independent, globally competitive companies, each focusing on its core business and attracting specialised investors and stakeholders. The boards of the respective companies had approved the scheme between September and October 2023. Anil Agarwal-led Vedanta Ltd is expecting to complete the demerger of its businesses by September-end this year. PTI
Time of India
3 days ago
- Business
- Time of India
NCLAT stays order against Vedanta's power business demerger
New Delhi, Appellate tribunal NCLAT has granted an interim stay on an order of the National Company Law Tribunal ( NCLT ) rejecting demerger of Vedanta 's power business and its merger with resultant entity Talwandi Sabo Power Ltd (TSPL). The order came as a relief to Vedanta Ltd which is in the process of demerging its businesses into separate entities. In a filing to BSE, Vedanta said the NCLAT order dated May 27, 2025 granted an interim stay on the order passed by the NCLT's Mumbai bench dated March 4, 2025 "to the extent it relates to the rejection of the scheme", subject to fulfilling the conditions mentioned in the order. Vedanta said that it remains committed to its strategic reorganisation plan and continues to work towards unlocking long-term value for all stakeholders. A two-member NCLAT bench said "the issues raised before us need to be considered at length and presently in view of the submissions made the scheme is severable and thus in case the stay is not granted to the impugned order, it may affect the second motion application filed in respect of other three transferor companies pending in different tribunals". Live Events The matter has been listed for the next hearing on August 4. Earlier, the Mumbai bench of NCLT had dismissed the petition of TSPL on the demerger scheme after objections were raised by SEPCO, a creditor of TSPL. The NCLT had observed "material facts have not been disclosed by the applicant company, violating Section 230 (2)(a) of the Companies Act, 2013, which in our considered opinion is bound to prejudice the public interest at large". The NCLT's ruling came after China-based SEPCO Electric Power Construction Corporation objected to the demerger, saying the power unit had deliberately excluded their outstanding debt of Rs 1,251 crore from the list of creditors. SEPCO alleged that TSPL had concealed the information about its liabilities. "This has been done deliberately to defeat SEPCO's rights," the NCLT had said. According to a Vedanta spokesperson, the NCLT ruling pertained only to the TSPL application and the power business undertaking and does not impact or alter the progress of the other business undertakings proposed to be demerged. SEPCO was listed as an unsecured creditor to the extent of Rs 1,251 crore, which would constitute more than 75 per cent of the unsecured debt by value, and as a result of the same, the vote by SEPCO itself would have been against the scheme, potentially impacting the interest of TSPL. The tribunal had said that the non-disclosure of such a significant liability could prejudice the interests of creditors and shareholders, and the valuation of TSPL conducted without factoring in SEPCO's claim was flawed and could impact public interest. The scheme, filed under Sections 230 to 232 of the Companies Act, 2013, involved the demerger of Vedanta's business verticals into five separate entities-- Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, Vedanta Base Metals and Vedanta Iron and Steel. It was aimed to create independent, globally competitive companies, each focusing on its core business and attracting specialised investors and stakeholders. The boards of the respective companies had approved the scheme between September and October 2023. Anil Agarwal-led Vedanta Ltd is expecting to complete the demerger of its businesses by September-end this year. PTI
Zawya
3 days ago
- Business
- Zawya
Jordan: SEPCO generates 30% of Jordan's electricity — minister
AMMAN — Minister of Energy and Mineral Resources Saleh Kharabsheh said on Thursday that the Samra Electric Power Company (SEPCO) provides around 30 per cent of Jordan's electricity needs, making it one of the country's largest and most critical energy providers. During a ceremony organised by the Samra Company in the Hashemiyah area of Zarqa Governorate to celebrate Jordan's 79th Independence Day, Kharabsheh highlighted the Economic Modernisation Vision as a strategic roadmap for the Kingdom, positioning the energy sector as a critical enabler of other industries and a cornerstone of the national economy. He also underscored the importance of addressing current challenges, transforming them into opportunities, and working toward achieving long-term national goals, according to an Energy Ministry statement. Kharabsheh also noted that the government is working to fully meet the Kingdom's natural gas needs from the Risha gas field within the next five years, through the efforts of the National Petroleum Company. Kharabsheh also highlighted the sector's key milestones, noting that SEPCO began commercial operations in 2005 with a single 100-megawatt gas turbine. "Today, its nominal generation capacity has reached 1,241 megawatts, with a projected total capacity of 1,834 megawatts by 2025," he added. He also commended the plant's efficient operation, managed by highly skilled Jordanian professionals, many of whom are residents of Zarqa, underscoring the company's role in supporting local communities and creating employment opportunities. For his part, SEPCO Director General Engineer Sami Zawatineh hailed the company's achievements since its establishment, reporting a nearly twelvefold increase in electricity production. He also noted the broader progress Jordan has made in developing its energy sector, particularly in electricity generation. © Copyright The Jordan Times. All rights reserved. Provided by SyndiGate Media Inc. (
Iraqi News
19-04-2025
- Business
- Iraqi News
Iraq signs with China's SEPCO to build four petrochemical plants in Karbala
Baghdad ( – In a strategic move to boost its industrial sector, Iraq's Ministry of Industry and Minerals has signed an agreement with SEPCO Electric Power Construction Corporation (SEPCO), a leading Chinese state-owned company. The partnership aims to develop a major industrial city in the Karbala Governorate. Under the agreement, SEPCO, a subsidiary of POWERCHINA, will construct four petrochemical plants within the Karbala Industrial City. In addition to the plants, the company will be responsible for developing essential infrastructure and providing maintenance for the operational units, supporting long-term industrial growth in the region. This initiative is part of Iraq's broader plan to attract international investment, strengthen its manufacturing capabilities, and create new job opportunities in the country's growing industrial sector.
Express Tribune
22-02-2025
- Business
- Express Tribune
Circular debt stands at Rs2.384tr
Listen to article The circular debt has been restricted to Rs2.384 trillion during the first half of this fiscal year on the back of an increase in electricity prices, as the power sector still suffered Rs158 billion in losses due to inefficiency, theft, and under-recoveries of bills. Little more than half of the Rs158 billion losses were caused by just two power distribution companiesHyderabad Electricity Supply Company (HESCO) and Sukkur Electric Power Company (SEPCO)the Ministry of Energy spokesperson confirmed to The Express Tribune. The government of Prime Minister Shehbaz Sharif had not reshuffled the boards of HESCO and SEPCO due to an arrangement with the Pakistan Peoples Party (PPP)the government's ally in the National Assembly that rules Sindh province. The gains from monthly, quarterly, and yearly price increases were offset by losses incurred by power distribution companies and the accumulation of interest charges on loans taken by the Power Holding Company Limited. The circular debt amounted to Rs2.384 trillion by the end of December, according to a report by the Power Division. The report further showed that after injecting Rs20 billion from the budget to reduce the stock of debt, there was a net reduction of Rs9 billion in circular debt compared to the Rs2.393 trillion level recorded in June 2024. Despite an overall marginal reduction in debt levels, there was still a net increase of Rs11 billion in the circular debt flow after adjusting the impacts of price increases and budgetary injections. The International Monetary Fund (IMF) had allowed an addition of Rs461 billion in the flow, but the Power Division performed much better than that. The primary challenge remained the losses caused by power distribution companies due to theft, inefficiency, and under-recovery of bills. The report showed that distribution companies caused Rs106 billion in losses in the first half of the fiscal year due to "inefficiency"a sum that was Rs29 billion or 38% more than the comparable period last fiscal year. These companies also caused Rs52 billion in losses due to "under-recoveries," which was Rs97 billion less than the comparative period. The cumulative losses due to under-recoveries and inefficiency amounted to Rs158 billion. These were partially offset by gains from monthly and quarterly tariff adjustments and prior-year recoveries. The government collected an additional Rs67 billion from quarterly and monthly fuel adjustments and another Rs140 billion through other price adjustments, according to the report. Defending the sector's performance, Power Division spokesman Zafar Yab Khan stated, "There are Rs69 billion fewer losses this half-year compared to the previous year." He noted that losses from July to December last fiscal year were Rs226 billion, while this year, for the same period, they stood at Rs158 billion. However, the spokesperson did not provide a separate breakdown of inefficiency-related losses and under-recoveries, despite an increase in the former and significant improvement in bill recoveries. Yab added that HESCO and SEPCO alone contributed Rs82 billion of the Rs158 billion losses, with an increase of Rs28 billion from last year. "This clearly means that the government's policies to appoint independent Boards of Directors at State-Owned Enterprises are yielding results," he said. "We are also working to resolve issues in appointing independent Boards of Directors for HESCO and SEPCO to further reduce losses," the spokesman added. The government had replaced the boards of all other power distribution companies except HESCO and SEPCO due to its arrangement with the PPP. The Express Tribune had reported this issue when the board changes were made last year. Yab further stated that the assumption that the circular debt remained at Rs2.384 trillion solely because of price increases was "not correct, as the circular debt during the first half of the current year has, in fact, registered a Rs9 billion decline." However, the report showed that this decline was due to Rs20 billion in fiscal adjustments. The spokesman said that the target for the first half was to allow a circular debt flow of up to Rs330 billion. With a negative result of Rs9 billion, the total improvement stands at Rs339 billion. He added that the increase in electricity prices did not hold validity since the national average tariff fell by Rs4.64 per unit from June to December 2024, with almost an Rs11 per unit decline for industrial consumers. However, in July last year, the federal cabinet had approved an increase of up to 51%, or Rs7.12, in the per-unit price of electricity. Moreover, the Power Division offered one of the lowest electricity rates of Rs26 per unit under the winter package, resulting in a considerable increase in consumption — particularly in the industrial sector, which saw a 6% rise in December 2024, the spokesman said. The Power Division's report, however, showed Rs67 billion in gains from quarterly and monthly fuel cost adjustments and Rs140 billion from other adjustments. Additionally, Rs12 billion was added to the circular debt during the first half due to non-payment by K-Electric, while another Rs56 billion was added due to non-payment of interest charges.
