A history of the Sterlite Copper plant in Thoothukudi

• Sterlite Copper has announced that it is selling off the plant at Thoothukudi.

Why is the Sterlite copper plant up for sale?

• In June, Vedanta Group put out an advertisement to sell Sterlite Copper in Thoothukudi.
• Ever since the plant was sealed in 2018 by TN government, company is trying to re-open it.
• Sterlite Copper was running in loss.
• Even if SC allowed them to re-open the company, it would need around ₹800 to ₹1,000 crores to revamp the plant.
• Reason for the sale: exploring options to make sure that plant and assets are best utilised to meet growing copper demands of the nation.

Why was the plant under lock and key?

• First blow came from the fishermen in the region.
• They were worried that effluents discharged by the plant would pollute the sea which will in turn ruin their livelihoods.
• 2013 : sulphur dioxide leak happened
• But SC allowed them to function after the payment of a fine for polluting land and water by running the company without approval for a considerable period of time.
• 2018 : company announced to enhance its capacity.
• Large-scale protests from local and neighbouring localities broke out.
• Protests turned violent and police open fired so Tamil Nadu government sealed the plant.

What has the company said about the many allegations against it?

• Officials at Sterlite have always emphasisedthat the plant is equipped with full-fledged air pollution control measures and adequate solid waste management facilities.
• Senior management has stressed that plant follows Zero Liquid Discharge since inception.
• TNPCB carries out regular monthly sampling across all village bore wells and has found no abnormalities.

What was the impact of the closure of the plant?

• India has shifted from being a large net exporter of refined copper to now being a net importer of copper during the last four years since shutdown of the Tuticorin plant.
• According to data by Care Ratings, India is now importing copper at 50% higher price as compared to the average prices of copper when India was a net exporter of the same.
• Sterlite was a major domestic supplier of phosphoric acid, which is a key raw material for fertilizer manufacturing companies.
• These fertilizer units were impacted due to stoppage of supplies and had to start importing.
• While operational, it was the largest supplier of sulphuric acid (used in detergent and chemical industries) and had 95% share of the market.

Why was a part of the Sterlite plant allowed to function during the COVID-19 pandemic?

• During second wave of pandemic, SC granted permission to re-open two oxygen plants at Sterlite Copper’s Thoothukudi plant.
• This was done because of national needs.
• Tamil Nadu government immediately constituted seven-member committee headed by the then district collector to oversee proper functioning of the oxygen plants.