Sepco Electric Power Construction Corporation designs and builds power generation and transmission infrastructure.
Last month, the Mumbai bench of the National Company Law Tribunal (NCLT) rejected a demerger plan filed by TSPL, potentially delaying the planned restructuring of Vedanta.
The restructuring plan, aimed at splitting Vedanta into five separate entities, was challenged by SEPCO, a creditor owed ₹1,251 crore by TSPL.
Now, Vedanta is considering trimming its proposed demerger into four units, against the planned five, according to sources, ET reported earlier this week. The original plan was to demerge Vedanta into six units.
The TSPL-SEPCO dispute pertains to the entities entering several engineering, procurement, and construction agreements in 2009 for the setting up of a 3×660 MW thermal power project at Mansa, Punjab.However, in 2015 multiple disputes arose between the parties, and accordingly, SEPCO invoked arbitration under the contracts.However, during the pendency of the arbitration, both parties arrived at a settlement in 2016, but SEPCO failed to fulfil its contractual obligations for the project, including the terms of the settlement, Vedanta said in a stock exchange notice.
