Get App
you are here: HomeNewsBusiness
Last Updated : May 31, 2018 01:35 PM IST | Source:

Sterlite plant closure may turn India into copper importer: Report

The plant produced 46 percent of India's copper demand. A permanent shut down will squeeze domestic supply for the next two months.

Moneycontrol News @moneycontrolcom

The closure of the Sterlite Copper plant in Thoothukudi (Tuticorin), Tamil Nadu, would increase domestic supply crunch and may turn India into a net importer of primary copper, according to a Cogencis report.

On Monday, the state government ordered a permanent closure of the plant, which accounted for nearly half of India’s total copper supply. The shutdown was ordered after violent protests broke out in Thoothukudi against alleged environmental pollution caused by the unit. Around 13 people were killed in police firing.

India produces about 8,70,000 tonne of primary copper in FY18, of which 46 percent came from the Vedanta Resources-owned Sterlite plant alone.

While the copper plant has been shut down since March 27 for maintenance, a permanent shut down is likely to squeeze domestic supply for the next two months, the report said.

Supply shortage is likely to last until other major copper producers such as Hindalco Industries and Hindustan Copper increase production or imports are stepped up.

Roughly 40 percent of Sterlite's copper output was exported and the rest was supplied to around 800 domestic buyers. Copper from the plant was used to manufacture wires, and electrical and auto appliances.
First Published on May 31, 2018 09:58 am
More From
Follow us on
Available On
PCI DSS Compliant