Four years after the Tamil Nadu government sealed the sprawling premises on charges of pollution, Vedanta on Monday announced that its Sterlite Copper plant and other units in the southern port city of Thoothukudi are up for sale.
Vedanta, in advertisements published in English and Tamil dailies, along with Axis Capital invited Expression of Interest (EoI) for the sale of a “state-of-the-art” smelter and refining complex on the highway connecting Thoothukudi with Madurai. It fixed July 4 as the last date for submitting the EoI for the Sterlite Copper unit.
Sterlite wants to sell the entire campus consisting of primary and secondary smelter units, a copper refinery, plants that produce Sulphuric Acid, Phosphoric Acid, continuous Copper Rod plant, an effluent treatment plant, a captive power plant, RO units, an oxygen generation unit, and residential complex with amenities.
In the advertisement, Vedanta said that production from the Sterlite Copper unit met 40 per cent of India's demand for copper and contributed around Rs 2,500 crores to the exchequer. The company accounted for 12 per cent of revenue at the Thoothukudi port and held 95 per cent market share for
Sulphuric Acid in Tamil Nadu provides direct employment to 5,000 people and another 25.000 indirectly through the value chain.
“The plant meets the highest standards of ESG and environment standards compared to global peers. The plant plays a vital role in meeting the growing domestic demand of copper and meeting India's commitment to green economy,” the advertisement said.
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While Vedanta is expected to issue a statement on Monday, environmentalists who were at the forefront of the anti-Sterlite agitation sought to know whether this was another ploy by Vedanta to exert pressure on the governments.
Sterlite Copper is the seventh-largest copper smelter in the world, meeting 36% of the total domestic copper market demand in India by producing 4,00,000 tonnes of refined copper per year. Hindalco supplies around 38% of the market demand, while Hindustan Copper accounts for 10% of the demand.
After Sterlite Copper’s closure in 2018, India began importing copper. Data shows that in 2017-18, Sterlite produced about 48% of the country’s total copper output of 842,961 tonnes.
Sterlite Copper, which began operations in Thoothukudi in 1996, was shut down on May 28, 2018, by the Tamil Nadu government for polluting the areas around the plant based on advice from pollution watchdog, Tamil Nadu Pollution Control Board (TNPCB).
The government’s action came a week after the anti-Sterlite protests on May 22 turned violent resulting in the death of 13 civilians in police firing. Since then, Sterlite Copper has not been able to reopen its sprawling facility – the oxygen plant inside the complex was operated for a couple of months to meet the needs of patients suffering from Covid-19 second wave in 2021.
Following the Tamil Nadu government sealing the plant, Vedanta moved to the National Green Tribunal (NGT) which allowed its reopening in a verdict in December 2018. However, the Tamil Nadu government moved the Supreme Court against the verdict – the apex court stayed the NGT order but allowed Sterlite Copper the liberty to approach the Madras High Court.
The Madras High Court, which conducted marathon hearings, had in August 2020 upheld the Tamil Nadu government’s decision to close the plant. Vedanta moved the Supreme Court against the High Court verdict and the case is being heard.
Almost all political parties in Tamil Nadu are against the reopening of the Sterlite plant which is an emotive and political topic in Tamil Nadu. While former contract employees of Sterlite Copper and businesses that were dependent on the smelter want to reopen of the plant, the victims of the police firing, villagers, and environmentalists are dead opposed to any such move.
Two inquiries – one by CBI and another by a judicial commission headed by retired judge Aruna Jagadeesan – were instituted to go into the police firing. While CBI has not made any headway, Justice Jagadeesan has submitted her report to the Tamil Nadu government.