Closure of copper facility in Tamil Nadu costs Vedanta Group $600 mn
Business Standard - With the copper smelting plant of Vedanta Group's Sterlite Copper in Thoothukudi, Tamil Nadu, lying shut for close to two years now, the losses incurred by the company due to the shut down are estimated to be around $600 million so far.
The company has been incurring losses for six consecutive quarters due to the closure and is now seeing a daily loss of Rs 5 crore, said company officials. The company has been fighting a prolonged legal battle and is now waiting for Madras High Court's order on the issue.
The factory had been facing protests from the local public for several years over the alleged emissions from the factory. The protests took a turn for the worse after the company announced that it would double the plant's capacity to 800,000 tonnes at an estimated investment of Rs 2,400 crore. The expansion was put on hold after 13 people were killed in police firing during the protests.
The company's application for renewal of Consent to Operate (CTO) for existing copper smelter was also rejected by Tamil Nadu Pollution Control Board (TNPCB) in April 2018. This was followed by the state government disconnecting power supply to the factory and ordering permanent closure of the facility thereafter.