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Vedanta – HZL Fertilizer Plant Update

Author: Published on: Published in: Vedanta (NSE:VEDL)

October 16, 2025 – On September 17, 2025, Vedanta Resources Limited (VRL) subsidiary Hindustan Zinc Limited’s (HZL) proposed fertilizer plant in Chanderiya, Rajasthan was rejected by the Expert Appraisal Committee (EAC). The EAC refused to approve HZL’s request to amend its Environmental Clearance due to multiple misrepresentations and errors in its filings:

  1. The site of the project has changed significantly, moving 500 metres from the Company’s existing smelter unit.
  2. HZL miscategorized the fertilizer plant as an expansion of an existing facility instead of a new construction.
  3. HZL classified the project in the single super phosphate category, while the original EC was granted for “Di-Ammonium Phosphate fertilizer.”
  4. Environmental baseline data was insufficient, consisting of a 1-month period in May 2022. The guidelines require a 3-month dataset less than 3 years old.
  5. HZL submitted Form 8, used for amendments that do not change site coordinates, instead of a Form 1.
  6. HZL failed to address environmental concerns and the EAC had received “several representations” from the public against the project.

We expect the EAC rejection and resubmission process to delay commissioning by 12 – 18 months, pushing expected operation from FY27 to FY28 or later and deferring ₹2,000 – ₹2,500 crore ($226m – $282m) in revenue. This estimate assumes no additional delays or objections.

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