1st Jun 2018 10:35
LONDON (Alliance News) - Vedanta Resources PLC said Friday it has been awarded a 10-year extension for its Rajasthan oil block beyond the current deal on the same terms and conditions.
Vedanta subsidiary Vedanta Ltd filed a writ petition in the Delhi High Court on Thursday and was granted the extension.
The FTSE 250-listed miner also said the Delhi High Court, whilst pronouncing the judgement, told the government of India to make known its decision on extending Vedanta's Rajasthan block production sharing contract within two weeks.
Shares in Vedanta were up 2.4% Friday to 726.20 pence each.
On Tuesday, Vedanta Ltd unit received a copy of an order from an Indian state to permanently close the Tuticorin copper smelter plant.
The order was issued by the government of Tamil Nadu directing the Tamil Nadu Pollution Control Board to seal Vedanta's copper smelter plant 1 located in the Thoothukkudi district of the state and to close the plant permanently.
The India and Zambia-focused miner said it will study the order and will keep investors updated on any developments.
Thursday last week, Vedanta said Tamil Nadu Pollution Control Board disconnected the electricity supply to the smelter plant and ordered the closure of the plant due to pollution concerns. Vedanta, however, emphasised the plant had not been operating since March 27.
In a separate statement on Tuesday, Vedanta also said State Industries Promotion Corp of Tamilnadu Ltd has cancelled 342 acres of land allotted for the company's proposed copper smelter plant 2 at Thoothukkudi district. The price paid for the land will be refunded by the state-owned investment company.
Vedanta had said Wednesday last week the Madurai Bench of the Madras High Court ordered the company to stop building the second smelter until a public hearing approves environment clearance.
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