India: Vedanta Copper plant that once contributed 40% of national demand, up for sale

Vedanta Limited, a metals and mining conglomerate issued an advertisement on Monday, saying that its Sterlite Copper Smelter in Tuticorin, Tamil Nadu is up for sale. Mentioning that the plant facilities included a Refinery, Copper Rod Plant, 160MW captive power plant, Sulphuric Acid plant, phosphoric acid plant and a residential colony etc, the parent company Vedanta invited Expression of Interest from prospective buyers. This announcement gains significance because of the chequered history of this facility, which had been operating in Southern India. Notably, as the largest such facility in India, it had been contributing nearly 40percent of India's annual copper requirements.

Confirming their announcement of intending to sell the plant, the company said in a statement "In the best interest of the country and the people of Tamil Nadu, we are exploring options to make sure that the plant and the assets are best utilized to meet growing copper demand of the nation".

Add WION as a Preferred Source

Since having established the plant in Tamil Nadu in 1994, Sterlite has faced allegations of polluting the environment and has had to close down operations in many instances. It was after seeking a legal remedy that the company resumed operations, almost in all instances. The company has maintained the stance that its Copper smelter is among the safest and was following the required norms.

In May 2018, following widespread protests and a Police firing that claimed 13 lives, the plant was ordered shut by the Tamil Nadu government. The protests by the local population were over Sterlite's plans to expand the plant's capacity. Initially, Vedanta approached the Madras High Court to resume operations at the plant but was turned down(the Court upheld the closure ordered by the State Government). Later, the company even approached the Supreme Court, where the case is still pending.

According to Sterlite, when in operation, their plant was contributing nearly 40percent of India's copper demand and nearly Rs.2500 to the exchequer. The facility also provided direct and indirect employment to 5,000 and 25,000 people, respectively. The plant has an installed capacity of 4,00,000MTPA and another 4,00,000MPTA under expansion. During the peak of the COVID-19 pandemic, the Oxygen plants alone within the Sterlite facility were specially operationalized to cater to the growing need for Liquid Medical oxygen.