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The Supreme Court proposed the formation of an expert committee on Wednesday to examine the future of Vedanta‘s Sterlite Copper plant in Thoothukudi, Tamil Nadu. This comes in response to Vedanta’s appeal against the closure of the plant by the Tamil Nadu government.

The three-judge bench, led by Chief Justice D.Y. Chandrachud, suggested that the committee include a representative from an environmental department of one of the IITs, along with representatives from the Tamil Nadu Pollution Control Board, the Central Pollution Control Board, and three other renowned environmental experts nominated by the court. However, both parties were asked to provide their suggestions for forming the committee.

The apex court outlined the committee’s responsibilities, including assessing whether an industry like a copper smelter can be situated in Thoothukudi and under what conditions it may operate. Additionally, the committee will determine safeguards to be imposed on the industry, compensation for any past violations, and measures to ensure environmental protection and reparations for violations.

During the hearing, senior advocate Shyam Divan, representing Vedanta, argued that the plant was shut down by the Tamil Nadu government despite having all necessary consents and approvals, citing issues like the absence of a groundwater report and inadequate air quality monitoring. He noted the plant’s contribution to India’s copper requirements, stating that its closure had made India reliant on imports. Divan also highlighted the significant revenue generated by the plant for the state through taxes.

In response, the court acknowledged the importance of the industry but stressed the need to address the concerns of the local community, particularly considering Tuticorin’s history of environmental disasters. The hearing is expected to continue tomorrow.

Ever since the plant was sealed in 2018 by the Tamil Nadu government after seeking advice from the Tamil Nadu Pollution Control Board (TNPCB), the Vedanta has been running from pillar to post to reopen the plant.

Trouble for the plant began with opposition from local fishermen concerned about pollution affecting their livelihoods. Legal battles ensued, including a closure order from the Madras high court in 2010, which was later stayed by the Supreme Court. The company faced further challenges after a sulfur dioxide leak in 2013 and violent protests in 2018, leading to the plant’s closure by the Tamil Nadu government.

In 2020, the Vedanta Group put out an advertisement which said that Sterlite Copper, Thoothukudi, is up for sale. Since the shutdown of the Thoothukudi plant, India has transitioned from being a net exporter to a net importer of copper. Before the shutdown, it was contributing to nearly 40% of India’s copper demand. The closure also impacted domestic fertilizer and chemical industries, leading to increased reliance on imports for key raw materials.

Sterlite was a major domestic supplier of phosphoric acid with a capacity of around 220,000 metric tonnes, a key raw material for fertilizer manufacturing companies. These fertilizer units were impacted due to the stoppage of supplies and had to start importing. While operational, Sterlite was also the largest supplier of sulfuric acid (used in detergent and chemical industries) in Tamil Nadu, holding a 95% market share.

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Published: 14 Feb 2024, 08:22 PM IST

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