An environment court set aside on Saturday the Tamil Nadu state government's order to close Vedanta's copper smelter plant permanently.
The court directed the Tamil Nadu state pollution regulator to pass a fresh order of renewal of consent for Vedanta's copper smelter within three weeks.
It also directed the company to spend Rs 1 billion ($13.91 million) within a period of three years for the welfare of inhabitants in the area.
The order came months after Tamil Nadu ordered the smelter shut down over alleged pollution. Demonstrations calling for its closure became violent in May and police fired on protesters, killing 13 people.