Tamil Nadu orders permanent closure of Sterlite Copper plant in Thoothukudi

As per the Government Order (GO) issued by the Environment and Forests Department, the Tamil Nadu Pollution Control Board (TNPCB) has been directed to seal the Vedanta group’s plant and close it down permanently. The GO said its orders were in consonance with the Directive Principles of State Policy of the Constitution, and quoted Article 48-A that “the State shall endeavour to protect and improve the environment and safeguard the forests and wildlife of the country”.

The order titled ‘Endorsement of Closure and Direction to Seal the Plant Permanent’ said it has also invoked protection of environment and provisions of the Water Act, 1974, to order the permanent closure of the factory in the larger public interest. 

It read, “The government endorses the closure direction of the TNPCB and also directs the TNPCB to seal the unit and close the plant permanently.” “It is brought to the notice of the Government that TNPCB did not renew the Consent to Operate to M/S Vedanta Limited, Copper Smelter Plant, SIPCOT Industrial Complex, Thoothukudi District in its order dated 9.4.2018. Subsequently, on 23.5.2018, TNPCB also issued directions for closure and disconnection of power supply to the Unit. The power supply has been disconnected on 24.5.2018,” it said.

CHENNAI: Reacting to the sealing of its Sterlite plant, Vedanta has issued a statement saying, “Closure of Sterlite Copper plant is an unfortunate development, especially since we have operated the plant for over 22 years in the most transparent and sustainable way, contributing to Thoothukudi and the state’s socio-economic development. We will study the order and decide on the future course of action.” 

The closure will add considerable pressure to the company’s stock that’s down 25 per cent since the start of the year. Some people believe Vedanta could move the Supreme Court, as copper constitutes 5 per cent of the company’s commodities pie. 

D Ravikumar, VCK general secretary said, “Do not believe that the closure that the state ordered against Sterlite Copper plant is permanent. Don’t forget that there is an apex court to help corporates during such times.” The company recently announced expansion plans for the plant. According to a report, while the Madras High Court stayed the expansion and directed the company to hold a public consultation, it was found that Vedanta got environmental clearance from the union government to expand the plant to double the capacity without public consultation, thanks to a reinterpretation of the law by the NDA government.