Vedanta approves ₹17,025 crore to expand aluminium and power operations

The granted extension increases BALCO’s aluminium production and Athena’s power capacity, helping to fulfil increased demand and operating goals.

Vedanta Limited’s board approves a ₹17,025 crore capital investment plan for its aluminium and power operations. The plan aims to improve production capacity and operational efficiency at its Bharat Aluminium Company (BALCO) subsidiary and the Athena Chhattisgarh Power Project. In a filing with the stock exchanges, the corporation disclosed its vast growth ambitions for these main initiatives. Vedanta Limited’s shares jumped to ₹460.40 on the BSE, up ₹2.60 or 0.57 percent after the announcement.

For BALCO, the expansion will increase its aluminium smelting capacity by 435 KTPA, revising its previously authorised expansion plan of 414 KTPA. This change will increase the company’s total capacity to 1,015 KTPA. The ₹11,816 crore expansion aims to double sow ingot capacity to 200 KTPA and boost wire rod production by 50 KTPA. Vedanta expects these capacity additions to start contributing to its economic gains in fiscal year 2025-26, representing a significant step forward in its efforts to fulfil rising domestic and worldwide demand in the aluminium sector.

The Athena Chhattisgarh Power Project gained board clearance for a capital investment of ₹5,209 crore. This project has two units, each with a capacity of 600 MW. The first unit is expected to commence operations in the first quarter of fiscal year 2025-26, with the second unit following in the third quarter of the same fiscal year. This expansion demonstrates Vedanta’s commitment to bolstering its power infrastructure to support its energy-intensive aluminium production.

Sesa Resources Limited will buy Sterlite Iron and Steel Company Limited (SISCOL) from Vedanta Incorporated for ₹1 lakh as part of Vedanta’s company restructuring initiatives. This transaction is consistent with Vedanta’s strategic simplification approach, which seeks to optimise resource allocation across its diverse business.

For more details, visit: https://www.vedantalimited.com/eng/

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