Chennai, Jan 17 (.) Industry bodies representing different sectors in Tamil Nadu’s Tuticorin/Thoothukudi, have welcomed the Madras High Court’s decision permitting Vedanta Ltd to apply to the state government for setting up a green copper plant.
The company had approached the court seeking a direction to the state government to consider its new proposal, setting up a green copper smelter plant.
It may be recalled that the Sterlite Copper (division of Vedanta) smelter plant in Tuticorin was shut in 2018 after protests from locals, which led to police opening fire, during which 13 people lost their lives.
The Madras High Court has allowed Vedanta to apply to the competent authorities with its new proposal.
Welcoming the development, Lion S Thiagarajan, Thoothukudi Makkal Vazhvurimmai Sangam told .: “Now there is not much of an opposition to the plant as people understand the economic impact due to the plant closure.”
“The closure made many go farming. But there too they felt the plant closure impacted the phosphoric acid and sulphuric acid became scarce –earlier byproduct at Sterlite Copper- and the prices of fertiliser went up,” Thiagarajan said.
Continuing further, Thiagarajan said Sterlite Copper was prompt in paying its vendors. While other units used to have a credit period of three months, Sterlite Copper used to settle its vendor bills in seven days.
“The transport industry has been severely affected ever since Sterlite Copper was closed down in 2018. When the plant was operating, there were about 1,000 tipper lorries. The number came down to 500 after the closure,” S.Murugan, Joint Secretary, Thoothukudi Lorry Owners Association, told ..
Continuing further Murgan said: “With the operation of power plants, the number of vehicles has gone up by 200 to 700.”
“If Sterlite Copper comes back, then there will be employment opportunities for about 1,500 people in the cargo transport sector alone, and there will be new logistics entrepreneurs,” Murugan said.
Not only the lorry operators, but also several others like the labourers, shops, servants, provision stores, and local transport operators were also affected by the closure of the copper smelter plant, Murugan added.
Businessmen said three thermal power plants and a couple of other factories in Tuticorin were not functional for a long time and it was the business from Sterlite Copper that sustained them.
According to him, the tyre industry too did well as the lorry operators used to change tyres every three months when the Sterlite Copper unit was operational.
The closure of copper smelter resulted in India importing copper and the prices going up.
The 400,000 tonnes plant, which used to cater to around 35-40 per cent of the country’s total copper requirement when it was shut down in 2018.
Interestingly, the Vedanta Group in 2021 announced that it is looking to set up a new Copper Smelter plant in the coastal region in India at a cost of around Rs 10,000 crore.
Vedanta Ltd, a subsidiary of Vedanta Resources, had called for an Expression of Interest from state Governments to set up a copper smelter in a coastal region in India.
The copper smelter plant of 500 KTPA will require a footprint of around 1,000 acres in proximity to the port, along with logistics connectivity with conveyor/ corridor of rail and road to handle 5 MTPA material movement on both inbound and outbound sides, the company had said.
According to the EOI, the project has investment potential of around Rs 10,000 crore, provides direct and indirect employment to 10,000 people and will contribute around Rs 3,000 crore to the exchequer annually.
. VJ SAS RB 1901