Mining major Vedanta has been asked to pay close to Rs 71 crore as 'Environmental Compensation' by the Odisha State Pollution Control Board over 'unauthorized disposal' of fly ash, the company informed exchanges in a statement, adding that the management intends to take legal recourse in the matter.
The order on compensation will be contested by the company after assessing the matter and examining the veracity, the statement added. "The Company intends to take legal recourse in the present matter before the appropriate forum. The Company is hopeful of a favorable outcome thereof and does not expect the said Order to have any material financial impact on the Company."
The order, signed by the Member Secretary of the State Pollution Control Board, Odisha was received by Vedanta on April 10, and had been issued under the 'Violation of the Fly Ash Notification of MoEF'.
"The issue pertains to allegation for unauthorized disposal of fly ash. The Member Secretary vide letter dated 10.04.2025 has requested the Company to deposit the Environmental Compensation of Rs 71,16,53,320", Vedanta informed.
The notification codifies the responsibilities of thermal power plants to dispose fly ash and bottom ash generated by it in an eco-friendly manner, to be used in making fly ash-based products, Cement and Ready Mix Concrete manufacturing, construction, shoreline protection structures, and few other usages. "Every coal or lignite based thermal power plant shall be responsible to utilise 100 per cent ash (fly ash and bottom ash) generated during that year, however, in no case shall utilisation fall below 80 per cent in any year, and the thermal power plant shall achieve average ash utilisation of 100 per cent in a three years cycle", the order said.
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