Vedanta lost 1.52% at Rs 314.75 at 10:05 IST on BSE after the company announced temporary power plant closure at Jharsuguda, Odisha.
The announcement was made after market hours yesterday, 14 September 2017.Meanwhile, the S&P BSE Sensex was down 36.45 points or 0.11% at 32,205.48.
On the BSE, 1.73 lakh shares were traded on the counter so far as against the average daily volumes of 8.16 lakh shares in the past two weeks. The stock had hit a high of Rs 316.15 and a low of Rs 313.35 so far during the day. The stock had hit a 52-week high of Rs 334.50 on 12 September 2017. The stock had hit a 52-week low of Rs 159.35 on 16 September 2016.
Vedanta said that following a breach in the Ash Pond dyke wall at Jharsuguda, Odisha at the end of August, the State Pollution Control Board, Odisha (SPCB) on 13 September 2017 served a direction resulting in a temporary closure of three units of 135 megawatts (MW) each of the 1,215 MW power plant, and two units of 600 MW each of the 2,400 MW power plant. The remaining units of the 1,215 MW plant have been allowed to operate until 12 October 2017, and the remaining units of the 2,400MW plant have been allowed to operate until 20 September 2017.
The SPCB has asked the company for compliance of certain conditions with a concrete plan within 5 days. The company is complying with the order of SPCB along with a request for revoking the said closure orders. This action may require a temporary power purchase of upto 200 MW, and hence a marginal impact on cost of production of aluminium. The company expects to be able to sustain the smelter capacity without affecting its production volume.
Vedanta said it is working towards the lifting of the SPCB closure orders at the earliest, to ensure that aluminium production is not affected.
Vedanta's consolidated net profit rose 67.15% to Rs 2270 crore on 26.72% growth in revenue to Rs 18203 crore in Q1 June 2017 over Q1 June 2016.
Vedanta is a diversified natural resources company, whose business primarily involves producing oil & gas, zinc - lead - silver, copper, iron ore, aluminium and commercial power.
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