Sterlite questions CM’s change of stand, says closure a political requirement

Appearing for Vedanta, senior counsel Ariyama Sundaram submitted before a division bench comprising TS Sivagnanam and V Bhavani Subbaroyan that the plant that was producing 391 tonnes of copper per day was closed by one stroke, leading to a direct financial loss of USD 200 million. The supply of copper by Sterlite worked out to 38 per cent of India’s copper requirement, he claimed, adding that the demand was now met by copper from China. Thus, the import has gone up by 200 per cent, which involves an import bill of USD two billion, he claimed.

There was bound to be some economic inference in the case, he said, alleging that the State finally ordering its closure only smacked of malafides. He also noted that a mere 20,000 people could cause the closure though more than 1.5 lakh people in Thoothukudi were being benefitted by the project.

Listing the chronology of events starting from the grant of environment clearance to impact assessment, the senior counsel wondered as to how the plant was given permission to expand thrice if the Tamil Nadu Pollution Control Board (TNPCB) considered it to be a polluting unit.

He also noted that out of the 63 industries located in the industrial estate in Thoothukudi, 10 including Sterlite have been rated as hazardous. However, for any minor mishap of a leak or something, Sterlite has been blamed. But at the same time, despite a direction to hold a source study, TNPCB was yet to even commence such a study. Till date, Sterlite had received only one adverse remark from National Environmental Engineering Research Institute (NEERI) and its recommendation was implemented at a cost of Rs 500 crore, Ariyama Sundaram added.

When the closure order was made, the unit was already shut down for undertaking maintenance. There thus was absolutely no scope for pollution, the company argued, also noting that as per law any closure should be based on continuing pollution. The unit was a zero-discharge unit unlike other units, which discharge their waste into sea. Despite this, Sterlite was targeted owing to a political requirement and not social as claimed, the senior counsel added.

He also wondered as to how the Chief Minister, who initially claimed that the agitation which led to the firing was due to anti-social elements, had ultimately taken a political call based on attendant circumstances and not on emergent consideration.

The hearing in the case is scheduled to continue Friday.