Vedanta Limited has received a credit rating reaffirmation from CRISIL following the National Company Law Tribunal's (NCLT) approval of its demerger scheme. The development comes as the company continues to pursue its university project in Odisha after recent discussions with the state's Chief Minister.

Latest Credit Rating Update

CRISIL has issued a credit bulletin confirming that Vedanta's ratings remain unchanged despite the corporate restructuring. The rating agency published its update following the NCLT order for the scheme of demerger issued on December 24, 2025.

University Project Development

Vedanta Group Chairman Anil Agarwal has revived the company's proposed university project in Odisha following a productive meeting with Chief Minister Mohan Charan Majhi. The discussion centered around Vedanta's ambitious plans for an additional Rs 1 lakh crore investment in the state, with particular emphasis on establishing a non-profit educational institution.

Investment and Project Details

The university project, previously facing uncertainty due to land acquisition challenges, received renewed support from the state government. CM Majhi assured Agarwal that the proposed institution should be established in Odisha, marking a significant step forward for the initiative.

Strategic Vision and Challenges

Agarwal described the university as a "dream project," highlighting its potential to address the significant outflow of Indian students studying abroad. He noted that approximately 7 lakh Indian students currently pursue education overseas, spending between Rs 70 lakh to Rs 1 crore each.

Despite receiving proposals from 12 other states, Agarwal expressed strong preference for establishing the institution in Odisha's Puri district. The company maintains that it will not proceed without adequate public support, emphasizing the importance of community backing for the project's success.

Corporate Restructuring Progress

The NCLT's approval of Vedanta's demerger scheme represents a significant milestone in the company's corporate restructuring plans. CRISIL's decision to maintain existing ratings suggests confidence in the company's financial stability throughout this transition period. Company Secretary Prerna Halwasiya confirmed the rating reaffirmation in the official communication to stock exchanges.

The National Company Law Tribunal (NCLT) Mumbai bench has issued significant directions regarding Talwandi Sabo Power Limited's (TSPL) scheme of arrangement application, marking a crucial step in Vedanta Limited 's ambitious demerger plan.

Key Developments

• Shareholder Meeting Dispensed: The NCLT has dispensed with the meeting of TSPL's equity shareholders, as the company received consent from all seven equity shareholders through affidavits.

• Creditor Meetings Mandated: The tribunal has directed TSPL to convene meetings of its secured and unsecured creditors within 90 days.

Creditor Details

Demerger Scheme Highlights

• Share Allocation: Under the scheme, shareholders will receive 1 fully paid-up equity share of TSPL (face value INR 10) for every 1 equity share of Vedanta Limited (face value INR 1).

• Business Separation: The demerger aims to separate Vedanta's businesses into independent entities, with TSPL set to receive the Merchant Power Undertaking.

• Strategic Objectives: The scheme is designed to create focused companies in aluminium, power, oil & gas, and iron ore businesses, potentially unlocking value and attracting diverse investor sets.

Implications and Outlook

This NCLT directive represents a significant milestone in Vedanta's corporate restructuring efforts. By allowing the dispensation of the equity shareholder meeting for TSPL, the process is streamlined, potentially accelerating the demerger timeline. However, the mandated creditor meetings underscore the importance of addressing the interests of all stakeholders in this complex corporate action.

The demerger strategy aligns with the global trend of conglomerates streamlining their operations to enhance focus and unlock shareholder value. For Vedanta, this move could lead to more specialized management of each business segment and potentially attract targeted investments in the separated entities.

As the process unfolds, market participants will be keenly watching how this restructuring impacts Vedanta's overall valuation and the individual performance of the soon-to-be-separated entities. The success of this demerger could set a precedent for other diversified conglomerates in India considering similar strategic realignments.