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Shares of Vedanta slipped further on Friday, on top of 2 percent correction in previous session after Odisha pollution board asked company to shut down its plant.
The Odisha State Pollution Control Board (OSPCB) in Jharsuguda has ordered temporary shut-down of its five units following a breach in its ash pond dyke wall in August.
The firm has been asked to close three units of 135MW of the 1215MW power plant and two units of 600mw each of the 2400MW power plant.
The remaining units of the 1215MW plant have been allowed to operate untill October 12, 2017 and remaining units of the 2400MW have been allowed to operate untill September 20, 2017.
"The OSPCB has asked the company for compliance of certain conditions with a concrete plan within 5 days. The company is complying with the order along with request for revoking the said closure orders," company said in release.
"The action may require a temporary power purchase of up to 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."
"The company is working towards the lifting of the OSPCB closure orders at the earliest, to ensure that production of aluminium is not affected," it added.
Gaurang Shah of Geojit Financial Services told CNBC-TV18 that the management will try to resolve the issue without impacting the activity at manufacturing facilities. And in case the plants do shut down then the management could have a plan B in place. So as now its wait and watch.
In Vedanta again some intraday breakdowns are there, so sell with a stop loss at Rs 325.50 for target of Rs 306, said Mitessh Thakkar of miteshthacker.com/
At 09:16 hrs Vedanta was quoting at Rs 314.80, down Rs 4.80, or 1.50 percent on the BSE.
Posted by Rakesh Patil
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