Bhubaneswar: The Odisha pollution panel has asked Vedanta to close five of its units on account of ash pond breach
Three of the units are at the captive power plant (CPP) and so if they are shut down then it will impact their aluminum production. Moreover to run the aluminum plants they will have to buy power from the market and with power tariffs at high levels, it does not bode well for the stock.
The other two units are at the Inspection Test Plant.
Reacting to the news, Gaurang Shah of Geojit Financial Services says 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.
-By Odisha Age.
