PM flags ‘national interest’ as Sterlite seeks ‘green copper’ making in Tuticorin

The Sterlite Copper plant in Thoothukudi has been shut for eight years. Around the time of the police firing on protesters in 2018 that left 13 dead and about 100 injured, the Tamil Nadu Pollution Control Board (TNPCB) withdrew its consent for the plant to operate. The State government subsequently ordered its closure. Citing repeated environmental violations and holding the company responsible for a sulphur dioxide leak in 2013, the Madras High Court upheld the closure order. The Supreme Court later endorsed that ruling. For many in Tamil Nadu, Sterlite seemed a closed chapter.

Yet, on May 10 this year, Prime Minister Narendra Modi invoked the Sterlite issue, lamenting the closure and seeing a conspiracy behind it. “There was a time when India used to export copper. But today, India has to import copper. In our country, strikes and protests led to copper plants being shut down,” he said.

Sterlite Copper had a capacity of 4 lakh tonnes of refined copper annually, meeting about 40% of India’s domestic demand and contributing to exports. Its closure made India a net importer of refined copper from being an exporter. Importing 4 lakh tonnes of refined copper instead of ore for domestic smelting entails a foreign exchange outgo estimated at about $3.5 billion. The smelter supplied nearly 350 downstream firms, many in the MSME sector, and its shutdown disrupted supply chains and contributed to price increases.

Copper’s importance has only grown since then. It is indispensable to electrical and engineering industries and is increasingly viewed as a strategic metal because of its role in electric vehicles, renewable energy systems and power transmission infrastructure. The closure also affected operations at the Thoothukudi port, which handled copper concentrate imports, and had wider repercussions for the local economy.

However, the Sterlite plant has faced prolonged protests ever since it started operations in the mid-90s. Fishermen initially protested over fears that effluents would affect marine life and their livelihoods. Later, townspeople and environmental activists took the lead. Concerns ranged from groundwater contamination and hazardous solid waste disposal to air pollution, which have been documented in court judgements. The 2013 gas leak remains a particularly sensitive issue.

The final round of protests in 2018 was triggered by the company’s plans for capacity expansion and was led largely by villagers living around the plant. The agitation drew support from across political parties and activist groups and gathered momentum as it approached its 100th day. Veteran CPI leader and former MP M. Appadurai later remarked that he had rarely witnessed such broad-based participation in any public movement. The protests culminated in the police firing on May 22, 2018.

Despite the closure, Vedanta has continued efforts to restart operations. The company has proposed a revamped manufacturing process to produce what it calls “green copper”. According to Sterlite, the new process would reduce environmental impacts through cleaner technology, renewable energy use, improved sulphur dioxide emission controls, greater water recycling and a shift towards desalinated seawater as a source. It has also proposed shutting down the phosphoric acid unit that generated gypsum waste.

The Madras High Court permitted the company to submit its proposal to the TNPCB. However, the Board rejected the application and declined to revoke its earlier order withdrawing consent to operate. Sterlite has challenged that decision before the High Court, arguing that its proposal was not subjected to adequate scientific scrutiny. The matter remains pending.

It is against this backdrop that Mr. Modi’s remarks assume significance. In Hyderabad, he said, “I would also appeal to the courts of the country that whenever such situations arise, efforts should be made to find solutions keeping the national interest foremost.”

Commenting on the legal route taken by Sterlite, Sanjay Hegde, senior advocate at the Supreme Court of India, said while closure of the original project has acquired judicial finality, the verdicts don’t bind things for all times to come. Sterlite is within their rights to try with a different process. “The courts should check to see whether there is a new dimension to what is being propounded or is it just a ruse to revive the old project with only cosmetic changes,” he said.

Mr. Hegde added that the prime minister may well be right that having another smelter is in national interest. But the question is whether national interest can be to the detriment of all environmental concerns. “What is happening is a broader agenda which says that environmentalism can be totally ignored and is antithetical to growth. When national interest is raised, the courts should take it into account but ask for particulars. How exactly is it in national interest?”