Big setback for Vedanta: SC junks plea for reopening Sterlite copper smelter plant in Tamil Nadu

SC junks Vedanta's plea to open Sterlite copper plant

The Supreme Court on February 29 dismissed  Vedanta's plea seeking reopening of its Sterlite copper smelter plant in Tamil Nadu for judgment.

The court held that "We are conscious of the nature of the contribution of the company to the area. However, the court has to be mindful of the principle of sustainable development and the health and welfare of the residents of the area is a matter of utmost concern"

After hearing the case for five days, the court delivered its judgment, noting Vedanta's non-compliance with legal obligations, including failure to remove copper slabs from nearly 11 sites, not abiding by consent conditions for gypsum operations, and inability to obtain authorisation for hazardous waste disposal.

A bench led by Chief Justice of India DY Chandrachud noted that while closure of industry is undoubtedly not the first choice. However, considering the repeated nature of breaches of law and regulations, the high court and the authority were left with no choice but to close the industry.

During the earlier hearings, the court had suggested setting up an expert committee to evaluate the possibility of opening the plant. Vedanta had agreed to set up of the committee and suggested certain parameters for the same. However, both the government of Tamil Nadu and the Tamil Nadu Pollution Control Board (TNPCB) were not aggregable for setting up a committee.

Case history:

In 2018, the Tamil Nadu government ordered the closure of Sterlite Copper after violent protests against the plant resulted in 13 deaths due to police firing. The government had cited violation of environmental norms as a reason for the closure.

The plant, at that time, was producing over 400,000 tonnes of metal ores annually and accounted for 40 percent of India's copper output. It also employed 5,000 people directly and 25,000 indirectly.

Vedanta, the parent company of Sterlite Copper, challenged the government's decision and the National Green Tribunal (NGT) allowed the plant to reopen finding the closure to be disproportionate. However, the Supreme Court overturned this decision and directed Vedanta to approach the Madras High Court for any interim relief.

Neither the Madras High Court nor the Supreme Court allowed the plant to reopen. Vedanta has filed a plea seeking periodic access to the plant to carry out essential maintenance work. The company is urgently seeking a hearing, citing the steep deterioration of the plant and its structures.

In April 2023, the Supreme Court permitted Vedanta to carry out the maintenance work at the closed plant. The decision was made based on the report of a high-power Committee (HPC) formed by the Government of Tamil Nadu to inspect the structural and civil safety of the plant.