Mumbai, August 20, 2025 — Shares of Vedanta Ltd. fell sharply on Wednesday after the Supreme Court dismissed a plea by its subsidiary, Talwandi Sabo Power Ltd. (TSPL), seeking additional compensation related to the withdrawal of deemed export benefits. The apex court upheld the earlier ruling by the Appellate Tribunal for Electricity (APTEL), stating that TSPL was never legitimately entitled to such benefits.
Vedanta’s stock dropped as much as 1.32%, hitting ₹444.15 apiece on the Bombay Stock Exchange (BSE) shortly after the verdict was announced. By midday, the stock was trading 0.19% lower at ₹449.25, reflecting investor concerns over the financial implications of the ruling.
The case revolved around TSPL’s demand for higher compensation following the withdrawal of deemed export incentives, which the company argued were essential to its financial planning for the Punjab-based power project. However, the Supreme Court’s decision effectively closes the door on any further financial relief from this avenue.
This legal setback follows another blow earlier this year when the National Company Law Tribunal (NCLT) rejected Vedanta’s proposed demerger of TSPL. The NCLT cited insufficient disclosure of material facts, including the exclusion of ₹1,250 crore in dues owed to SEPCO Electric Power Construction Corporation, a key creditor.
The twin rulings have cast a shadow over Vedanta’s broader restructuring plans, raising concerns about delays and diminished value creation from the demerger. Market analysts suggest that the Talwandi Sabo project’s prolonged litigation and regulatory hurdles could impact Vedanta’s financial flexibility and strategic roadmap.
