The deadly boiler explosion at a Vedanta group power plant in Chhattisgarh, which claimed at least 20 lives, has triggered fresh scrutiny of the company’s environmental, social and governance (ESG) record, with an independent report alleging a pattern of safety lapses and operational concerns.
The explosion, which also left over 30 workers injured, is reported to have been caused either by a boiler tube failure or a rupture in the main steam pipe carrying high-pressure steam to the turbine. The affected unit is believed to be unit 1, while unit 2 was still under commissioning at the time.
Questions over Plant History and Timeline
The Viceroy report raises several questions regarding the plant’s operational history and maintenance, particularly during a prolonged period when work remained stalled between 2017 and 2024 due to financial constraints.
It notes that the Athena plant was originally conceived with a commissioning target of 2016 but faced repeated delays before being admitted to insolvency proceedings in 2019. Vedanta acquired the asset in July 2022 for ₹564 crore.
Subsequently, the company revised its timelines significantly. While earlier projections indicated commissioning by FY30-31, later updates advanced the schedule to FY25-26 and FY26-27 for the two units.
The report questions what operational or financial changes enabled this acceleration and whether adequate testing, including hydro tests, was conducted before recommissioning.
Allegations of Safety and ESG Lapses
The Viceroy report alleges that the recent explosion is not an isolated incident but part of a broader pattern of industrial accidents across Vedanta’s operations globally.
It cites multiple past incidents, including fatalities at mining and power facilities, environmental violations, and disputes involving local communities.
The report also raises concerns over the sourcing of key equipment, noting that the boiler and turbine systems were supplied by a Chinese manufacturer rather than a domestic public sector supplier Bharat Heavy Electricals Ltd (BHEL), which it describes as a benchmark for reliability.
Governance and Financial Allegations
Beyond operational issues, the report makes broader allegations related to corporate governance and financial practices.
It claims that profits are routed through brand fees to overseas entities and alleges regulatory inaction, though these assertions are presented as the research firm’s opinions based on publicly available information.
The report also criticises the government’s response, including compensation announcements for victims’ families, arguing that accountability should rest with the company.
Company and Government Yet To Respond
Vedanta has stated that the incident involved personnel from its subcontractor and that investigations are ongoing. Official findings on the exact cause of the explosion are awaited.
Government agencies, including industrial safety authorities and forensic teams, are conducting parallel inquiries into the incident.
The incident has intensified debate around industrial safety standards, ESG compliance and regulatory oversight in India’s energy and mining sectors.
Meanwhile, Chhattisgarh police have registered a first information report (FIR) against Anil Agarwal, chairman of Vedanta group, and several others in connection with the deadly boiler explosion at the company’s power plant in Sakti district that claimed 20 lives and left 16 persons injured.
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