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Sterlite Copper's Closure to Impact Turnover of Rs 600 Bn for Industry CEO

Read more about Sterlite Copper's closure to impact turnover of Rs 600 bn for industry: CEO on Business Standard. Vedanta Group's Sterlite Copper smelter plant in Thoothukudi, which accounts to around 36 per cent of the domestic copper production, will result in an annualised total turnover of Rs 600 billion.

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Sterlite Copper's Closure to Impact Turnover of Rs 600 Bn for Industry CEO

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  1. Sterlite Copper's closure to impact turnover of Rs 600 bn for industry: CEO The closure of Vedanta Group's Sterlite Copper smelter plant in Thoothukudi, which accounts to around 36 per cent of the domestic copper production, will result in an annualised total turnover of Rs 600 billion including Sterlite's own, downstream copper industries, chemical industries and local businesses, said P Ramnath, CEO of Sterlite Copper. Refuting the allegations, he said that the major pollutants in the region are several thermal power plants with around 4,000 Megawatt capacity, which release almost 99 per cent of the sulphur dioxide in the region. The company's manufacturing facility in Thoothukudi with a capacity to produce around 400,000 tonne per annum capacity for refined copper, and has been serving to 36 per cent of the domestic demand along with exports, was ordered by the State government to permanently shut down following protests from the neighbouring villagers which led to police firing and death of at least 11 people in May, this year. The plant has been shut

  2. down from March 27 for maintenance works and the Tamil Nadu Pollution Control Board (TNPCB) refused to renew its Consent to Operate (CTO) for the plant, following which a government order was issued in the second half of May announcing permanent closure of the facility. This has resulted in loss to the tune of around Rs 20 billion to the exchequer as around three per cent of Tamil Nadu's Gross State Domestic Product (GSDP) comes from the facility, which will be under threat considering the closure of the unit, said P Ramnath, CEO of Sterlite Copper. ALSO READ: Vedanta Group profit may take 2-3% hit on Sterlite Copper closure "A total turnover of Rs 600 billion is affected, including Sterlite's own, downstream copper industries, chemical industries and local businesses," he said. More than 400 businesses, many being from first generation entrepreneurs are facing closure due to the shut down of Sterlite Copper. Several chemical and fertiliser companies were getting sulphuric acid and phosphoric acid at low rates as they were supplied by Sterlite Copper, where this comes as a subproduct of refining copper. He added that more than 1,00,000 employees are affected directly and indirectly all over Tamil Nadu and livelihood of around 400,000 people is at stake including the employees and beneficiaries. While according to reports, the closure will have an impact on 2-3 per cent of Vedanta group's profit, the company has been arguing that this is a larger loss for the State and the overall industry, considering it is the fifth largest company in Tamil Nadu and it plays an important role in the Indian copper market. In a panel discussion organised by the Chennai International Centre, a discussion platform created by eminent people including industrialists in

  3. Chennai, P Ramnath said that the facility is a zero liquid discharge smelter plant and many of the allegations raised by the anti-sterlite groups have now been discussed and closed by the Supreme Court order in 2013, which allowed the plant to operate while it asked the company to deposit a Rs 1 billion with the government to take steps to protect the environment. "The Supreme Court has directed the government to use the interest from the Rs 1 billion we paid, into actions to protect the environment. The interest alone is around Rs 400 million and only Rs 40 million has been spent and that too to construct roads," he alleged. ALSO READ: Sterlite plant shutdown in TN could cost Vedanta $100 million: Anil Agarwal The protesters, however, argue that while the Supreme Court has considered the allegations about flouting the environmental norms, it has said that the Court was of the opinion that since the norms were eased by the TNPCB for Sterlite, the company has not faultered in terms of many norms. D Nagasaila, an envrionmental advocate who has been arguing for remedial steps in Thoothukudi, argues that for the people in the neighbourhood, pollution is a reality and any step to temporarily address the issue will not bring in permanent solution to the people's protest in the region. In the panel discussion moderated by former National Security Advisor of India M K Narayanan, Nagasaila alleged that the TNPCB has colluded with the company to ease various norms stipulated under the environmental regulations, for the smooth operation of the manufacturing plant. The company was planning to double its capacity to 800,000 units, as the State government provided additional land earlier, with an investment of

  4. around Rs 25 billion. With the protest and the death of people related to it, the government has cancelled the land approval for the expansion and the company has also said that its first priority is to restart operations in the existing unit of the plant. Article By : Business Standard

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