State Industries Promotion Corporation of Tamil Nadu (SIPCOT) has cancelled the land it had allocated for the second copper unit of Vedanta Sterlite.
SIPCOT is owned by the Tamil Nadu government.
The move comes a day after the Tamil Nadu government ordered permanent closure of the Sterlite copper plant at Thoothukudi.
13 people died in violent protests at Thoothukudi last week. The protesters were against expansion of the copper plant due to environmental concerns.
The plant, which has a capacity of 400,000 tonnes per annum, was in operation for 22 years until March 27 this year. Since March 27, it had been closed for maintenance and license renewal.
Tamil Nadu Deputy Chief Minister O Panneerselvam has said the state government is ready to face all legal challenges required to keep the plant permanently closed.
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