Odisha pollution control board asks Vedanta to pay Rs 71 crore over fly ash effluent

Vedanta has said that State Pollution Control Board, Odisha, has asked it to deposit a compensation of Rs 71.1 crore for unauthorised disposal of fly ash.

Fly ash is a fine, powdery waste material created when coal is burned in power plants.

"The issue pertains to allegation for unauthorised disposal of fly ash. The Member Secretary… requested the company to deposit the environmental compensation of Rs 71,16,53,320," Vedanta has said in a filing to BSE.

Environmental Hazards Under the Scanner

Fly ash, a fine, powdery residue produced from coal combustion in thermal power plants, poses significant environmental hazards if not managed properly. The penalty reflects ongoing regulatory efforts to enforce environmental compliance amid rising concerns over industrial pollution and its broader implications.

Vedanta Denies Charges, Plans Legal Challenge

According to Vedanta's regulatory filing with the Bombay Stock Exchange, the company received a demand to pay Rs 71,16,53,320 for the unauthorised disposal.

Vedanta, however, has rejected the allegations and plans to challenge the order through legal proceedings. It claims the decision did not sufficiently consider the company's environmental compliance history or its prior submissions to authorities.

"The company is hopeful of a favourable outcome and does not expect the order to have any material financial impact," Vedanta stated in its filing. It further attributed delays in public disclosure to internal fact-checking procedures.

Expansion Plans Continue in Odisha

The development comes at a time when Vedanta continues to expand its footprint in Odisha. In Rayagada district, the firm is developing a greenfield aluminium smelter with an investment of Rs 40,991 crore, approved in March 2024.

ALSO READ: Vedanta’s Rs 40,991 crore aluminium project in Odisha to generate 7,200 jobs; everything to know

The project promises 7,200 jobs and is part of a broader Rs 91,528 crore investment that includes a massive alumina refinery, reinforcing the state’s industrial aspirations.