Vedanta to Challenge ₹71 Crore Environmental Fine in Odisha
Vedanta, one of India’s major mining and power companies, has been directed by the Odisha State Pollution Control Board (OSPCB) to pay ₹71.16 crore as environmental compensation for alleged violations in the disposal of fly ash. The directive comes amid growing scrutiny of industrial compliance with environmental norms.
The company confirmed receipt of the order, which was issued by the Member Secretary of the OSPCB on April 10, and stated its intention to challenge the decision through legal means. In a disclosure to the stock exchanges, Vedanta said it is currently assessing the matter and will verify the allegations before deciding on its next course of action.
“Vedanta shall evaluate the situation and take appropriate legal recourse to contest the order,” the company said. It also clarified that the financial penalty is not expected to have any material impact on its overall operations or financial health.
The compensation demand stems from alleged non-compliance with the Ministry of Environment, Forest and Climate Change’s (MoEFCC) Fly Ash Notification. This notification requires all coal- and lignite-based thermal power plants to ensure 100% utilization of the ash generated within a year, with a minimum 80% utilization in any single year. Over a three-year period, the plants must maintain an average ash utilization rate of 100%.
Fly ash, a fine powder generated from burning coal or lignite in thermal power plants, poses significant environmental risks if not managed properly. Improper disposal can lead to air and water pollution, affecting both ecosystems and human health. The MoEFCC mandates its responsible usage in various applications, such as in cement manufacturing, ready-mix concrete, road construction, and shoreline protection structures.
Vedanta’s case involves allegations of unauthorized disposal of fly ash, which the OSPCB argues violates environmental norms. The ₹71 crore compensation has been levied to address the environmental damage allegedly caused by this breach.
The state pollution board’s directive is part of a broader effort to ensure that industries comply with environmental regulations and adopt sustainable practices. Regulators are increasingly focused on curbing pollution from coal-based power plants, which remain a significant contributor to India’s energy mix.
While the legal process is yet to unfold, Vedanta remains confident of a favorable outcome. The company reiterated its commitment to following environmental guidelines and stated that it would pursue the matter through the appropriate legal forums.
