Vedanta initiated the arbitration after the government requested a further share of the company’s profits and extended the license for the Barmer oil block in Rajasthan. Vedanta shares fell 0.65% on the NSE on August 25 amid falling benchmark prices, a day after the arbitrator upheld the miner’s position on an oil block in Rajasthan. Vedanta shares traded at Rs 237 in the morning. Vedanta has commenced arbitration proceedings after the Indian government requested an additional share of profits from the renewal of the company’s license for the Barmer oil block in Rajasthan. The company said the additional shares were not paid under the terms of the product division agreement. According to exchange filings, the company is currently reviewing the bonus. The government has agreed to a 10-year extension when the license expires in 2020, but requires a higher share of the block’s oil and gas profits as well as a cost recovery dispute resolution of Rs 5,651 crore. The group, led by Anil Agarwal, has business interests in natural resources and operates in India, South Africa, Namibia, Liberia, United Arab Emirates, South Korea, Taiwan and Japan. The company’s product range includes petroleum, zinc, lead, silver, copper, iron ore, steel, nickel, aluminum, energy and glass.
In June 2023, the company announced its expansion into semiconductors and display glasses. According to a statement, the acquisition will be made through the transfer of shares at par value of the semiconductor and display SPVs of Twin Star Technologies Limited.
TSTL is a wholly owned subsidiary of Volcan Investments Limited, the parent company of Vedanta Limited.
