Vedanta's application for renewal of copper smelting unit rejected

KOLKATA: Vedanta Ltd said on Tuesday that the state pollution regulator had rejected its application for renewal of consent to operate its copper smelting unit at Thootukudi in Tamil Nadu. Vedanta’s smelter at Tuticorin is one of the country’s largest copper smelting units. The company has plans to double capacity at the smelter to 800,000 tonne per year. The rejection comes at a time when the proposed expansion of the smelter has been facing opposition from local people of Thootukudi. Locals and environmentalists want a closure of the plant and accuse Vedanta’s smelter of being a source of pollution and a risk to fisheries.

The company said it had applied to Tamil Nadu Pollution Control Board for annual renewal of CTO for its existing smelter plant at Thoothukudi. In a notification to the BSE on Tuesday Vedanta said the application was rejected “for want of more clarifications and it was evaluating further course of action.” The smelter, run by Vedanta’s Sterlite Copper unit, is controlled by Vedanta Ltd, a majority-owned subsidiary of London-listed Vedanta Resources. The unit is currently closed as part of a 15-day scheduled maintenance, which started on March 27. The company said in its notification the maintenance is likely to be extended.

The development comes at a time when domestic demand for copper is estimated to be growing at 7-8% per annum. With consumption of copper has been increasing consistently over the last few years, India may turn into a net importer of copper by the year ended March 2020 if no new plant is commissioned, ICRA said in a report last week.