Tamil Nadu’s Sterlite Copper Factory in Tuticorin shut down
Date : May 29, 2018
The Vedanta owned Sterlite copper plant in Tuticorin, Tamil Nadu was ordered permanently shut.
Vedanta is a metals and mining company.
The government order comes after violent protests by the residents of the city. The residents claim that the copper smelting plant was causing hazardous waste in the city. The closure of the plant is projected to significantly India’s copper production.
The Tuticorin Protests & Consequences
The government order followed the state Pollution Control Board’s observation that it was constitutionally mandated to close the plant. Residents have opposed the plant as far back as 1999. Protesters allege that the smelter and plant are leaking waste into the soil and air. On 21 May, nine people were killed in police firing when a crowd of 20,000 marched in protest.
Tuticorin’s Copper Plant History
In 2013, one person was killed in a gas leak at the plant. The plant was shut on orders of the Tamil Nadu government. This decision was overturned by the National Green Tribunal. The dispute is pending in the Supreme Court. It is notable that the plant has been shut since March 27. The license to operate expired on March 31. The protesters demand that no extension be granted for the copper smelting plant.
Impact of closure of Tuticorin’s Plant
The closure of the plant, one of the biggest in the country, will impact domestic copper consumption. Copper consumption has increased by over 5.9% every year on average.
The closure of the plant, one of the biggest in the country, will impact domestic copper consumption.
Electrical and transport sectors are expected to see huge shortfalls. Vedanta stock has succumbed to record lows. Some experts have estimated that the closure of the plant will cost the country around $3 billion annually.
Quick Facts about Vedanta Company
- Vedanta is a metals and mining company.
- Anil and Navin Agarwal are the Executive and Vice Executive Chairman respectively.
Vedanta is headquartered in London.
- The company was founded in Mumbai, Maharashtra.
- It currently employs over 25000 people and has an annual revenue of $11 billion.
- The company also owns operations in Australia and Zambia.