Tamil Nadu pollution control board pulls plug on Sterlite plant

CHENNAI | KOLKATA: The Tamil Nadu Pollution Control Board has ordered the closure of the Vedanta-Sterlite copper factory in Thoothukudi — with a notice issued late on Wednesday — marking a further reversal for the beleaguered unit mired in a series of legal setbacks and violent protests that have resulted in the death of 13 people since Tuesday.

Power supply to the company was disconnected on Thursday morning following the pollution board’s order, which was issued after it found that “the unit was carrying out activities to resume its production operations…” “I am pained and very sad about the unfortunate incident, I have full sympathy for the families affected.

The plant is closed for annual shutdown. We are waiting for clearances from the court and the government to restart the plant. I assure you I am committed to the environment, people of Tuticorin and Tamil Nadu and we will abide by the law of the land,” said Anil Agarwal, chairman of Vedanta Resources, in a video message on Thursday.


The latest order by the pollution board was mailed to the company on Wednesday with the board taking cognisance of the plant’s activities on May 18 and May 19, which board officials said “was intended to prepare for production”.

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Locals and environmental activists claim emissions from the plant, one of the country’s biggest, are polluting the air and water in the district, affecting people’s health. The plant has remained closed since March 27 when it began a 15-day maintenance shutdown.

In April, the pollution control board refused to grant a licence to operate the smelter while it was under a planned shutdown. The matter is sub judice and the next hearing is on June 6. Vedanta said it is working on restarting the plant as soon as possible which at the earliest could be middle of June, according to a senior official. “The plant has a current production capacity of 400,000 tonnes per annum. The monthly production level is around 35,000 tonnes,” said P Ramnath, CEO of Sterlite Copper.

Referring to the latest order for closure issued by the pollution control board, Ramnath told ET that “the company did not receive any showcause notice on the alleged production-related preparatory work on May 18 and the next day”.

In an update to the stock exchanges on the closure order on Thursday evening, the company said the copper smelter has contributed to 5.4% of Vedanta’s consolidated EBIDTA at Rs 1,373 crore during financial year 2017-18. The carrying value of property, plant and equipment as on March 31, 2018, was 2% of total assets at Rs 2,131crore.

Earlier on Tuesday, a massive turnout of protesters, including unruly mobs who surrounded the District Collector's office set vehicles afire, resulting in police firing that left 11 people dead. On Wednesday, another round of firing followed, killing one person. An injured person succumbed to his wounds in hospital on Thursday.

The violence has triggered opposition fury and led to calls for the resignation of chief minister Edappadi K Palaniswami. The protests, which began three months ago, are directed against Sterlite’s plans to expand capacity at the Thoothukudi plant from 4 lakh tonnes a year to 8 lakh tonnes. The pollution control board had refused to renew the consent-to-operate licence of the plant citing deficiencies in the steps taken to control pollution.

Meanwhile, a public interest litigation filed by Fatima Babu, a lecturer and member of the MDMK based in Thoothukudi, had won a stay at the Madras High Court on Wednesday, stalling the proposed expansion of the plant. The court delivered an interim injunction while directing the central government to renew the environmental clearance of the factory only after a public hearing, which is to be conducted before September 23 this year.

“The pollution control board has not presented a legally watertight case. In a way (it) paves way for the company to reopen the plant on appeal. If the board is serious about shutting the Sterlite factory on strong legal grounds, it has all the evidence it needs,” said Nityanand Jayaraman, a social activist based in Chennai who feels the board’s action “betrays intent to merely react to prevailing public sentiment.”

Chief Minister Palaniswami broke his silence on the police firing on Thursday, blaming it on a few opposition party leaders and “anti-social” people movements. Demonstrations continued on Thursday evening against the government by Tamil rights groups in Chennai. A state-wide bandh called by the opposition parties is also set to take place in Chennai on Friday, condemning the police firing and deaths in Thoothukudi.

“While the Sterlite plant remains closed, the strike is a reaction to the police brutality orchestrated in Thoothukudi. It has very less to do with the closure of the plant,” said Saravanan A, a DMK spokesperson. Meanwhile, Thoothukudi was slowly limping back to normalcy. Afew shops were open but traffic was subdued as the new district collector Sandeep Nanduri took charge. “The first priority is to restore normalcy and law and order in Thoothukudi. We have ordered Amma Canteens to be open through the day and also made arrangements for 15 SPs, three DIGs and four IGs,” he said.

“Principal secretary Gagandeep Singh Bedi is also there to monitor situation,” said Nanduri. The new Superintendent of Police for the district, Murali Rambha, who took over after the transfer of P Mahendran, said, “We have taken special interest in restoring the supply of milk and food items.”

(With inputs from Anandi Chandrasekhar)