Vedanta jumps on buzz of TN govt allowing Sterlite plant to produce oxygen for 4 months

Vedanta rose 3.84% to Rs 236.60 on reports that the Tamil Nadu government has allowed the company’s Sterlite Industries plant in Tuticorin, Tamil Nadu to produce oxygen for four months.

The media reported that the Tamil Nadu government on Monday allowed Vedanta’s sealed Sterlite Industries in Tuticorin to operate for the production of medical oxygen for a four-month period in view of the depleting oxygen reserves amid the massive spread of the coronavirus cases.

The decision was taken during an all-party meeting convened by Tamil Nadu Chief Minister K Palaniswami. While granting the permission, the state government directed the Sterlite plant not to be involved in the production of copper or any other material.

The unit was sealed by the state government in May 2018, days after 13 agitators were killed in police firing during a violent anti-Sterlite protest in the southern district over pollution concerns.

Vedanta, a subsidiary of Vedanta Resources, is one of the world’s leading oil & gas and metals company with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, and aluminium & power across India, South Africa, Namibia, and Australia.

The company reported 58.5% jump in consolidated net profit to Rs 4,224 crore on a 6.5% rise in net sales to Rs 22,498 crore in Q3 FY21 over Q3 FY20.

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