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Sterlite Copper
Sterlite Copper
Sterlite Copper
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Sterlite Copper is a subsidiary of Sterlite industries, a company owned by Vedanta Limited.

Key Information

History

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It was originally incorporated as Rainbow Investments in 1975, the name of the company was changed to Sterlite Cables in 1976. It was later renamed Sterlite Industries in 1986. With a restructuring in July 2000, the company is left with only a metal division comprising copper and aluminium divisions.

In 1994, it acquired Madras Aluminium Company (MALCO) for ₹55 crores. Sterlite and its associate companies took a 55% stake in India Foils for ₹50 crores. This improved Sterlite's product mix from aluminum to aluminum foil with the largest market share of 65%.[2] In 1999, the company acquired Copper Mines of Tasmania.[3]

In February 2011, Sterlite Industries acquired Lisheen Zinc Mine in Ireland from Taurus International S.A., for a share value of approximately $546 million.[4] In September 2013, SESA Goa, Sterlite Industries and Vedanta Aluminium merged to form Sesa Sterlite Limited.[5] It was listed on the NYSE in June 2007.[6]

Overview

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In 1992, Maharashtra Industrial Development Corporation was allotted a plot in Ratnagiri district's Zadgaon village.[7] On 13 December 1993, over 30,000 people of the city marched to the unit and demolished the quarters for the construction workers and some other structures.[8][9] After that incident Sterlite was relocated to Thoothukudi.[citation needed]

Three state governments, Gujarat, Goa, and Maharashtra have refused permission to the Vedanta Group to set up its 40,000 tonnes capacity due to its high polluting nature of the Sterlite copper smelting plant before the company managed to convince the Tamil Nadu government. Since its commencement in 1997, the plant had been found on numerous occasions to flout the pollution norms with impunity and foregone permit requirements by pollution regulators, as observed by the courts.[10]

Sterlite operated the largest copper smelter plant in India, in Thoothukudi from 1998 to 2018. The plant was not operational from March 2018 and was shut down by the Government of Tamil Nadu on 28 May 2018 after protests from locals. The plant also included a refinery, a phosphoric acid plant and a sulphuric acid plant.[11] The company's main operating subsidiaries are Hindustan Zinc Limited for its zinc and lead operations; Copper Mines of Tasmania Pty Limited for its copper operations in Australia; and Bharat Aluminium Company Limited for its aluminium operations. It also operates a copper mine in Australia.[12]

Sterlite copper operates a copper refinery and two copper rod plants in Silvassa, within the Union Territory of Daman & Diu.The refinery was completed in February 1996 but the smelter was not commissioned until October 1996.[13]

COVID-19

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In late April 2021, considering the COVID-19 situation and oxygen requirement, Sterlite Copper received special permission from the Government of Tamil Nadu to produce medical oxygen at their copper smelter plant in Thoothukudi, which was closed since 2018 after the state government's order.[14] The company generated and despatched over 542.92 metric tonnes of liquid medical oxygen by June 2021 to help India deal with COVID-19.[15] This is in addition to 953 oxygen cylinders containing 6671Nm³ of gaseous oxygen were supplied to meet the requirements of COVID-19 patients and hospitals.[16] It also donated ₹5 crore (US$591,406) to the Government of Tamil Nadu Chief Minister's Public Relief Fund in April 2021.[17]

Financials

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The company reported ₹1,055 crores as its operating profit in India in the financial year 2018. In FY20, it recorded an operating profit of negative ₹300 crores.[18] It reported a loss in Ebitda of ₹235 crore and a revenue drop by 57% to ₹10,739 crore during the fiscal year 2018-19, compared to FY 2018-17, primarily due to the shutdown of Thoothukudi smelter in Tamil Nadu. In 2017-18, the company reported an Ebitda profit of ₹1,055 crore. The company's revenue was ₹24,951 crore in the FY18.[19]

Controversies

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In 2001, Sterlite industries, BPL and Videocon were found guilty by SEBI of having colluded with Harshad Mehta and 17 brokers (10 from BSE and 7 from NSE) in a bid to corner shares and rig shares prices. This resulted in a ban on the company from accessing capital markets for 2 years.[20] In 2003, Vedanta Resources (UK) was listed on the London Stock Exchange in the second largest floatation of the year in LSE. Vedanta Resources is a holding company that owns many entities including a large proportion of Vedanta Limited and Sterlite industries.[21]

Vedanta Sterlite Copper Public Relations:

Vedanta Sterlite Copper, a major entity in the mining and metallurgy sector, collaborates with an official Public Relations agency to manage its public communications. The PR efforts are focused on providing accurate and transparent information to the public, stakeholders, and the wider community.

Thoothukudi violence

[edit]
Main article: Thoothukudi violence

The Thoothukudi Copper Smelting plant has been long-opposed[11] by the local residents for polluting their environment as well as causing a range of health problems and has been subject to several closures, on grounds of violating environmental norms.[22]

The National Environmental Engineering Research Institute (NEERI) and the Tamil Nadu Pollution Control Board (TNPCB) found evidence that Sterlite contaminated the groundwater, air and soil with its effluents and also violated standards of operation.[11]

In 2010, the Madras High Court had ordered a shut down of the same plant, for violating environmental regulations which was subsequently challenged by the group in the Supreme Court.[23] The Supreme Court, in April, 2013 struck down the Madras high court's order[11] and instead fined Sterlite Rs 100 crore for polluting the environment and for operating the plant without a renewal of the consents by TNPCB.[22] Post a favorable ruling by the National Green Tribunal (NGT), the plant soon reopened.[11]

In March 2013, TNPCB re-ordered a closure of the plant on grounds of leakage of gas, leading to nausea and skin irritation among local inhabitants.[23][24][25]

The group has steadfastly denied accusations of any wrongdoing, throughout.[24][22]

In March and April 2018, there were renewed mass-protests against the company's plans of setting up a second smelting complex and demands of an entire shutdown of the smelting plants, on grounds of violating environmental regulations were raised.[26][27] On 22 May 2018 the protests took a deadlier when 20,000 protesters turned violent and subsequently police had to resort to lathi charge and shooting. In the event referred to as Thoothukudi violence 14 people were killed and several others injured. Section 144 was imposed to control the situation.[28]

On 28 May 2018, the Government of Tamil Nadu ordered the permanent closure of Sterlite plant in Thoothukudi.[29] [30][31] This action of TN Government was set aside by NGT on 15 December 2018, directing the TNPCB to pass fresh order of renewal of consent and authorization to handle hazardous substances. Though the Supreme Court of India set aside these directions on appeal by TN Government, Justices Rohinton Fali Nariman and Navin Sinha held on 18 February 2019 that the NGT had no jurisdiction to entertain the matter. But the ADMK parties are given rights to approach the Madras High Court.[32]

Aftermath and impact

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On 28 October 2018, Tamil Nadu Pollution Control Board reported that the sulphur-dioxide levels in the air had reduced significantly after the Sterlite plant's closure.[33] TNPCB also confirmed an improved Air Quality Index.[34]

As it was classified as a red category, the district administration has maintained the smelter premises since its closure. On 22 March 2019, the company submitted an affidavit to the Madras High Court, claiming the damage of ₹100 crore (US$12 million), which was caused due to negligence in maintaining the premises by the district authorities.[35]

Three years after closure of Sterlite, A 2022 study conducted by the Asian Institute of Technology, Bangkok and National Institute of Technology, Jamshedpur, indicated no significant change in the air quality and sulfur dioxide contribution to pollution in Thoothukudi before and after the closure of the smelter in 2018,.[36] While the closure of Sterlite caused immediate noticeable improvement in air quality by TNPCB, another study conducted by Anna University and the Centre for Climate Change and Adaptation Research confirmed that the road dust and vehicular emission as major factors contributing for the dust, causing poor air quality and make tuticorin already unsustainable .[37]

In June 2019, Mint reported that the company faced a loss of about $200 million in profits ever since its copper smelter plant got closed.[38] Around 20,000 people lost their jobs, who were employed by the company due to the shutting of the smelter and about 98,400 people were affected in the consumer or downstream industries. The plant's closure also caused a cascading effect on the supply chain of chemicals and the associated industries that operate using products of Sterlite Copper.[35][39]

According to commerce ministry data, it impacted India's industrial metal exports and led to becoming a net importer beginning 2018-19.[40][41] In March 2021, in a written response in the Lok Sabha, Pralhad Joshi, the Minister of Mines, Coal and Parliamentary Affairs, informed the lower house that the plant's closure has affected the domestic production of refined copper. The copper production of India dropped to 410,000 tonnes in 2019-20 from 830,000 tonnes in 2017-18 and the refined copper output in 2018-19 was 450,000 tonnes.[42]

In 2021 and 2022, controversially it was also reported that petitions were filed by some villagers, fishermen and a few local organizations demanding the reopening of Sterlite Copper including the victims of police firing on anti-Sterlite protests.[43][44][45][42]

While the Justice Aruna Jagadeesan Commission did not find any "direct evidence" that points to the involvement of either Sterlite Industries, as claimed by a few activist groups, or any outfit, as alleged by the then government and a few individuals such as actor Rajinikanth, in the violence of 22 May 2018, it is clear state government, three Tahsildars, 17 police personnel and the then District Collector, N Venkatesh co-ordinated inaction, lethargy, complacency and dereliction of duty.[46]

CSR

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The company is engaged in various CSR activities, supporting health, education, environmental and humanitarian causes. In June 2019, the company supplied RO purified water to 1,400 families in 12 villages as part of the Muthucharam - Tamira Surabhi Project during the water crisis.[47] It has launched Tamira Muthukkal, a project under the Muthucharam Initiative that provides skill training modules on various courses to help the youth of Thoothukudi to seek employment. It has also launched a skill center, offering courses and training in logistic trade.[48] It runs a project called Ilam Mottukal, which works for the education of girl child in the Thoothukudi district[49] and also runs a scholarship program called Sterlite Educational Scholarship.[50] In December 2018, it announced to allocate ₹100 crore (US$12 million) to set up social infrastructure, including building a hospital and one million trees plantation in Thoothukudi, Tamil Nadu.[51] Sterlite donated ₹5 crore (US$591,406) to the Chief Minister's Public Relief Fund during COVID-19 pandemic in April 2021.[17]

Awards and recognition

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References

[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Sterlite Copper

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from Grokipedia
Sterlite Copper is the copper business division of , operating an integrated , , and ancillary facilities complex in , , , which commenced production in 1996. The plant featured a 400,000 metric tonnes per annum (MTPA) copper smelter, a , a copper rod manufacturing unit, sulfuric acid and phosphoric acid plants, and a 160 MW captive power facility, enabling comprehensive processing from copper concentrate to finished products. At its peak, Sterlite Copper supplied up to 36% of 's refined copper demand, positioning it as a key contributor to the nation's metal production and supporting downstream industries through high-purity copper cathodes and rods. The operations generated substantial economic value, including exports and local for thousands, while integrating environmental controls such as effluent treatment and stack emission monitoring as per regulatory standards. However, the facility encountered ongoing disputes over alleged groundwater contamination and emissions, prompting repeated interventions by the Pollution Control Board and judicial oversight. These escalated into large-scale protests in 2018, culminating in a directive for permanent closure in May of that year after 13 fatalities during clashes with police, primarily justified on grounds of non-compliance with environmental clearances. The shutdown markedly reduced domestic refined copper output, shifting toward reliance on imports for over 40% of requirements and underscoring tensions between industrial development and localized .

History

Establishment and Early Operations (1990s-2000s)

Sterlite Copper, a division of Sterlite Industries () Limited, commenced operations at its copper smelter in , , in 1996, marking the establishment of 's first privately developed smelting facility. The plant was designed as an integrated operation producing refined cathodes, rods, and by-products such as , with an initial annual production capacity of 100,000 metric tonnes of . It incorporated advanced technologies, including the ISASMELT process licensed from in , to enhance efficiency. During its early years in the late , the facility focused on custom of concentrates, contributing to domestic refined supply and reducing India's reliance on imports. Operations emphasized zero-liquid discharge standards from inception, utilizing plants for . By the early , production ramped up steadily, with the smelter achieving consistent output amid growing demand for in India's industrial sector. In the mid-2000s, Sterlite Copper expanded its capacity significantly, reaching 400,000 metric tonnes per annum by 2006 through phased investments and technological upgrades. This growth positioned the plant as a major player, accounting for a substantial portion of national production and supporting downstream industries like power and . Early operations also included the commissioning of associated facilities for sulfuric and production, enhancing resource utilization from by-products.

Expansion Efforts and Initial Regulatory Challenges (2000s-2010s)

In the early , Sterlite Copper, a of Sterlite Industries () Limited, pursued capacity expansions at its smelter to bolster 's domestic production amid rising demand. By 2005, the company increased its output from 180,000 tonnes per annum (tpa) to 300,000 tpa, with a subsequent upgrade to 400,000 tpa completed in November of the same year. These enhancements included applications for consents to expand daily production from 900 tonnes to 1,200 tonnes, aiming to reduce reliance on imports, which then accounted for over 90% of national needs. Further expansions materialized in 2006, adding 120,000 tpa to both and refinery capacities, alongside 90,000 tpa for associated sulphuric acid production, positioning the plant as India's largest facility with output reaching approximately 304,000 tonnes in 2010-11. By 2008, operational adjustments effectively boosted daily yields to 1,200 tonnes, supporting the plant's role in supplying around 40% of India's refined . These initiatives were driven by first-mover advantages in custom and strategic investments in technology, though they coincided with heightened scrutiny from environmental regulators. Regulatory challenges emerged concurrently, rooted in allegations of non-compliance with control norms. As early as January 2001, local residents petitioned the Control Board (TNPCB) over toxic discharges mixed with rainwater from the facility, prompting initial investigations into violations. Throughout the decade, the TNPCB issued multiple closure notices and directives for upgrades to abatement systems, citing exceedances in sulphur dioxide emissions and , though the company contested these as manageable through installed scrubbers and monitoring. Tensions escalated in 2010 when the Madras High Court ordered a temporary shutdown of the smelter for breaching environmental standards, including inadequate handling of emissions and waste, following petitions from local activists and oversight bodies. Sterlite appealed the ruling, arguing operational compliance via retrofitted controls, and operations resumed after court-mandated audits and penalties, highlighting recurring disputes over enforcement efficacy by state regulators, which some reports attributed to inconsistent monitoring rather than outright malfeasance. By 2013, the Supreme Court imposed a ₹100 crore fine on the company under the polluter pays principle for prior violations, underscoring early regulatory pushback against unchecked growth but allowing conditional restarts pending verifiable remediation. These episodes foreshadowed intensified conflicts in the late 2010s, as expansion proposals intersected with accumulating local health and ecological grievances.

Operations and Technical Overview

Production Processes and Capacity

The Sterlite Copper plant in , , operates an integrated production facility that processes concentrate through , converting, refining, and downstream . The primary stage utilizes IsaProcess™ technology developed by (MIM), , involving an ISA™ furnace to smelt concentrate into matte and slag, followed by processing the matte in a Pierce Smith Converter to produce blister . This bath approach employs advanced process control systems, such as Yokogawa CS 3000 DCS with Advance Process Control for monitoring bath temperature and lance height, enabling efficient extraction of from sulphide ores. Blister copper from the converter is refined in anode furnaces to achieve approximately 99.6% purity before being cast into . These undergo electrolytic in the tankhouse using IsaProcess™ , producing high-purity copper cathodes at 99.99% copper content, with anode slimes recovered for further extraction of copper and precious metals including , silver, and . A portion of the cathodes is then processed in continuous cast rod (CCR) plants via electrolytic tough pitch (ETP) copper to manufacture copper rods suitable for applications. By-products from the process, particularly sulphur dioxide gases, are captured and converted in a double contact double absorption (DCDA) sulphuric acid plant engineered by Kvaerner Chemetics, Canada, while wet process is produced via the hydro agri dihydrate (HDH) method. The plant's designed capacity for smelting and production stands at 400,000 metric tonnes per annum (MTPA), matched by cathode output capacity. Specific unit capacities include a at 205,000 MTPA, a rod mill at 90,000 MTPA in (with additional CCR capacity contributing to a total of 250,000 MTPA across sites), sulphuric acid production at 1,300,000 MTPA, and at 220,000 MTPA. The facility also incorporates a 160 MW coal-based captive power plant to support operations. These capacities reflect the plant's configuration prior to its closure in 2018, with no expansions operational as of that date despite prior plans for doubling output to 800,000 MTPA.

Environmental Controls and Technological Investments

Sterlite Copper's operations incorporated (ZLD) systems from the plant's inception in 1996, treating all wastewater through plants and evaporators for reuse within processes, eliminating external discharge. Solid wastes from effluent treatment were disposed in a secured facility compliant with (CPCB) guidelines. Air pollution controls included full-fledged systems such as flue-gas desulphurization units, bag filters, and multistage wet electrostatic precipitators (ESPs) to capture dust and clean sulphur dioxide gas streams to near-transparency before stack emission. High-volume, low-pressure stacks facilitated dispersion, supported by online continuous emission monitoring systems for real-time regulatory compliance. The company invested $74.5 million in these technologies, incorporating modern control equipment like desulphurization and advanced to meet standards affirmed by the in 2013 and in 2013. Additional upgrades over the years included enhancements to ESPs and gas cleaning processes, contributing to progressive reductions in particulate emissions as per self-reported operational data prior to the 2018 closure. Post-closure proposals in 2025 by an expert panel engaged by suggested further technological shifts, such as a hybrid model emphasizing recycled input to lower energy use and emissions by up to 80% compared to primary , though these remain unimplemented pending regulatory approval.

Economic Contributions

Employment Generation and Local Economic Impact

The Sterlite Copper plant in , , directly employed approximately 1,500 workers when operational, primarily in , , and associated processes. These roles included skilled technicians, engineers, and maintenance staff, contributing to local skill development through and technical programs offered by . Beyond direct hires, the facility supported an estimated 30,000 indirect jobs through ancillary services, including , contracting, and activities involving over 64 local contractors and workers from and 50 surrounding villages. This multiplier effect stemmed from annual expenditures of around ₹600 on local purchases, transportation, and materials, sustaining truckers, vendors, and small businesses in the region. The plant's operations generated an annual turnover exceeding ₹22,000 crore, injecting significant revenue into the local economy via wages, taxes, and procurement, which bolstered Tamil Nadu's industrial ecosystem prior to its 2018 closure. A 2022 economic analysis by the CUTS Centre for Competition, Investment & Economic Regulation quantified the pre-closure contributions, estimating that the facility's output supported 0.72% of Tamil Nadu's GDP through copper production and related activities. Post-closure data underscores the dependency, with job losses leading to widespread livelihood disruptions, including former skilled workers shifting to informal sectors like street vending.

Role in National Copper Supply and Import Reduction

Sterlite Copper's smelter in , with an annual refined production capacity of approximately 400,000 metric tons, supplied up to 40% of India's total domestic demand for refined prior to its closure in May 2018. This output supported key sectors including , infrastructure, and automotive components, aligning with India's consumption growth from 0.7 million tons in FY2017 to projected higher levels amid industrialization. By fulfilling a substantial portion of refined copper needs locally, the facility reduced India's reliance on imports, which were minimal for cathodes before when domestic production peaked at 0.843 million tons in FY2018. The plant's integrated operations—from imported concentrates to producing high-purity cathodes—enabled cost-effective supply chains, avoiding outflows estimated at $1.2 billion annually post-closure due to surging imports. Evidence of its import-substitution role is evident in the post-2018 import dynamics: refined imports doubled within a year of shutdown, reaching net inflows of 0.335 million tons by recent fiscal years, while exports declined by up to 90%. This shift transformed from relative self-sufficiency to heavy dependence on suppliers like (69% of imports in 2023-24), underscoring Sterlite's prior contribution to national supply security amid global price volatility.

Environmental and Health Claims

Alleged Pollution Effects and Empirical Data

Allegations of from the Sterlite Copper smelter primarily centered on (SO₂) emissions, with a notable incident on March 23, 2013, involving a leak from the plant that affected thousands of residents, as ruled by the in 2020, attributing responsibility to the company for inadequate safety measures. However, ambient SO₂ monitoring from Pollution Control Board (TNPCB) stations showed levels during plant operation typically below national standards of 80 µg/m³ (24-hour average), with one pre-closure measurement at 20 µg/m³ near the plant dropping to under 5 µg/m³ shortly after shutdown in 2018, though longer-term post-closure assessments indicated no statistically significant decline in SO₂ concentrations across multiple sites. Independent analyses, including those reviewing TNPCB , concluded that SO₂ elevations during operation were minimal (e.g., +1 µg/m³ at various sites) and attributable to multiple industrial sources in the cluster, such as fertilizer and chemical plants, rather than Sterlite alone. Water and soil contamination claims focused on like , lead, and leaching into and coastal sediments from and disposal. A 2015 study of coastal aquifers near the Sterlite (within the SIPCOT industrial zone) detected elevated (up to 0.083 mg/L, averaging 0.015 mg/L; 42% of samples exceeding WHO limit of 0.01 mg/L) and selenium (up to 0.149 mg/L, averaging 0.086 mg/L; 82% exceeding 0.01 mg/L), partially linking these to leaching, including from processing activities. stockpiles along the Uppar River were cited in (NGT) proceedings for potential runoff risks, though tests by the (CPCB) classified the as non-leachable and non-hazardous, with no exceedance of toxicity thresholds. total dissolved solids (TDS) in the area exceeded 4,000 mg/L basally, but multiple environmental impact evaluations, including court-mandated ones, failed to isolate Sterlite as the primary source amid contributions from other local industries and geological factors. Health impact allegations included elevated respiratory diseases and cancer rates among nearby residents, attributed to chronic exposure to emissions and contaminants. Despite these claims, crude incidence rates for cancer in remained below the state average, with official data from the National Cancer Registry Programme indicating no disproportionate burden linked specifically to the smelter. The NGT committee's review identified procedural violations (e.g., expired authorizations and unanalyzed in air) but found no direct causal evidence tying plant operations to widespread hazards, recommending enhanced monitoring rather than permanent closure. Overall, while isolated exceedances occurred, empirical attribution to Sterlite was confounded by the multi-source industrial in , where the district ranked 23rd out of 's more contaminated areas per state pollution databases.

Company Compliance Measures and Independent Audits

Sterlite Copper maintained pollution control systems including sulphur recovery units, flue gas desulphurization, and online emission monitoring for SO2, NOx, and particulate matter, as required by environmental clearances from the Ministry of Environment and Forests. The plant operated under a zero liquid discharge policy, treating effluents through reverse osmosis and multi-effect evaporators before reuse or solidification of sludge. Annual environmental statements were submitted to the Tamil Nadu Pollution Control Board (TNPCB), detailing water consumption (approximately 20 million liters per day recycled), hazardous waste generation (over 1 million tonnes of copper slag annually repurposed for construction), and emission levels claimed to be within norms post-upgrades. Independent verifications by regulatory bodies revealed mixed compliance. A TNPCB on February 27, 2018, confirmed adherence to emission standards at the time. However, a 2013 (NGT) probe found violations including excess emissions and , resulting in a Supreme Court-imposed fine of Rs 100 crore on Sterlite Industries, directed toward environmental restoration in . A 2018 NGT-appointed , comprising experts from the and others, identified multiple breaches such as failure to clear from the Uppar River despite directives, inadequate record-keeping for , and sporadic exceedances in stack emissions, though it noted the plant's economic significance and urged operational continuity with stricter oversight rather than closure. The verified implementation of some upgrades like additional electrostatic precipitators but highlighted persistent gaps in effluent treatment efficiency and ambient air quality monitoring around the facility. Post-closure audits by TNPCB in subsequent years, including directives from the in 2024-2025, continued to scrutinize proposed refurbishments for compliance with updated standards, amid disputes over historical non-adherence to remediation plans.

Controversies and Protests

Pre-2018 Activism and Pollution Disputes

Opposition to the Sterlite Copper smelting plant in , , emerged shortly after construction began in the mid-1990s, with local fishermen protesting potential impacts on marine ecosystems and livelihoods. On March 20, 1996, approximately 500 fishermen blockaded the cargo ship MV Reesa to prevent the delivery of copper concentrate raw materials, marking one of the earliest organized actions against the project. These demonstrations highlighted concerns over air emissions and from the process, which involves copper concentrate to produce copper and generates as a . Sporadic protests continued through the late 1990s and 2000s, often led by fishing communities and environmental activists alleging violations of environmental clearances and excessive emissions of pollutants such as , , and . The (NEERI) conducted multiple assessments, including reports in 1998, 1999, 2003, 2005, and 2011, which identified issues like improper plant siting without adequate clearances in early years and contamination from gas leaks in some instances. However, the 2011 NEERI inspection concluded that the plant's control measures were operational and compliant with norms at that time, though activists contested the findings as insufficiently addressing cumulative impacts from the industrial cluster. Health-related disputes intensified, with residents claiming elevated rates of respiratory illnesses, miscarriages, and cancers linked to airborne and waterborne toxins from the . A 2012 study by a local committee noted higher-than-average cancer incidences in surrounding villages, attributing them partly to industrial emissions, though it acknowledged contributions from 67 nearby industries rather than isolating Sterlite. Independent analyses, however, found no conclusive official directly tying the plant to anomalous outcomes, with cancer rates in comparable to state averages when adjusted for demographics. Sterlite responded by investing over ₹500 in pollution abatement technologies, including plants for SO2 capture and claims of , while courts imposed fines—such as ₹100 by the for past violations—but permitted resumed operations post-audits. A major escalation occurred on March 23, 2013, when a gas leak from the plant affected nearby residents, causing eye irritation and breathing difficulties, prompting a temporary shutdown ordered by the Pollution Control Board for maintenance and investigation. The incident fueled renewed protests and legal challenges, with activists demanding permanent closure amid allegations of repeated non-compliance, though the plant reopened after implementing corrective measures and paying environmental compensation. These pre-2018 disputes underscored tensions between economic benefits from the facility—which supplied 40% of India's refined —and unproven but persistent claims of irreversible environmental and health harms, often amplified by local NGOs despite mixed empirical validation from regulatory audits.

2018 Thoothukudi Protests and Violence

The anti-Sterlite protests in intensified in early 2018 after ' subsidiary sought regulatory approval to expand the copper smelter's capacity from 400,000 to 800,000 tonnes annually, amid long-standing local grievances over emissions and health effects. On April 9, 2018, India's permitted conditional resumption of operations, excluding the expansion, directing the state government to facilitate restart within four weeks while enforcing pollution controls. This ruling, perceived by activists as favoring the company, sparked widespread demonstrations, including daily sit-ins and rallies demanding permanent closure of the plant. The protests peaked on May 22, 2018, the 100th consecutive day of agitation, with thousands participating in a rally organized by local groups toward the Collectorate to press for shutdown. As the march progressed, violence erupted when protesters breached barricades, pelted stones at security forces, torched over 20 vehicles—including police vans and the local Superintendent of Police's office—and vandalized , prompting clashes that injured dozens of policemen. Police responded with lathis, tear gas, and non-lethal rounds before resorting to live without audible warnings, firing multiple volleys into the crowd. This resulted in 13 deaths—11 on May 22 and two subsequently from injuries—and over 100 injuries among protesters, with reports revealing that 12 victims were struck by bullets in the head or chest, and at least six from behind at close range. Video evidence captured plainclothes personnel firing from elevated positions, including atop police vehicles. A one-member judicial commission of , appointed by the government and reporting in October 2022, held senior police and revenue officials directly responsible for the deaths, citing excessive and indiscriminate firing despite available alternatives for crowd dispersal. The report highlighted intelligence failures, inadequate preparation, and violations of protocols under the Standing Orders, while noting the protesters' initial turn to and as a trigger but deeming the state's response disproportionate. It recommended criminal cases against 21 officials, including the district Collector and Superintendent of Police, for . Contemporary analyses pointed to potential instigation by radical leftist elements aiming to provoke a forceful police reaction, differing from the non-violent trajectory of earlier regional agitations like the 2017 protests. The violence prompted the government to order the Sterlite plant's indefinite closure on May 28, 2018, citing public safety and environmental risks, effectively nullifying the Supreme Court's operational directive. Over 70 protesters faced federal charges in 2021 for alleged rioting and conspiracy linked to the unrest.

Closure Order and Initial Court Interventions (2018-2019)

On April 9, 2018, the Pollution Control Board (TNPCB) rejected Sterlite Copper's application for renewal of its Consent to Operate, citing repeated non-compliance with environmental standards, including exceedances in emissions and failure to install required pollution control equipment. Following violent protests on May 22, 2018, which resulted in 13 deaths from police firing, the TNPCB issued closure directions on May 23, 2018, mandating disconnection of electricity, water, and effluent discharge facilities. On May 28, 2018, the state government endorsed the TNPCB's actions and ordered the permanent closure and sealing of the smelter under Section 18(1)(b) of the Water (Prevention and Control of Pollution) Act, 1974, directing enforcement to prevent any operations. Sterlite Industries (India) Ltd., a Vedanta subsidiary, challenged the closure orders before the (NGT) Southern Zone in June 2018, arguing violations of and that the directives were disproportionate to alleged infractions. On December 15, 2018, the NGT set aside the state government's May 28 order as "non-sustainable" and violative of principles of , permitting Sterlite to recommence operations subject to compliance with emission norms, installation of additional , and independent monitoring. The tribunal's ruling emphasized that prior TNPCB consents had been granted after audits and that the closure appeared reactive to public unrest rather than solely evidentiary. The government immediately appealed the NGT decision to the , which on December 21, 2018, directed maintenance of status quo ante, effectively staying the NGT's reopening directive and keeping the plant sealed pending further review. The state then escalated to the , which on February 18, 2019, allowed the appeal, set aside the NGT's order for lacking jurisdiction over state enforcement actions under laws, and upheld the closure while permitting Sterlite to process and dispose of 3.2 tonnes of existing copper residue under TNPCB oversight to mitigate environmental risks. The noted Sterlite's of 7,000 environmental violations since 1997 but prioritized safeguards over immediate economic resumption.

Subsequent Litigation and Rulings (2020-2025)

In August 2020, the dismissed petitions filed by seeking the reopening of the Sterlite Copper smelting plant in , upholding the government's 2018 closure order on grounds of repeated environmental violations, including excess sulphur dioxide emissions and failure to install adequate pollution control measures despite prior directives. The court rejected Vedanta's claims of compliance upgrades, citing evidence of ongoing non-compliance and public health risks documented in official inspections and monitoring reports. Vedanta appealed the Madras High Court's decision to the , arguing that the plant's closure inflicted economic harm by increasing India's copper import dependency and that independent audits demonstrated operational improvements sufficient for safe restart under strict conditions. In December 2020, the denied interim relief for reopening while the appeal was pending. Subsequent proceedings through 2023 involved continued submissions on environmental data and economic impacts, but no substantive reversals occurred, with the court emphasizing the primacy of pollution abatement over industrial revival. On February 29, 2024, the dismissed Vedanta's special leave petition challenging the 2020 order, affirming the plant's permanent closure due to "repeated violations" of environmental norms, suppression of material facts in prior representations, and inadequate remediation of groundwater contamination and as verified by state pollution control boards. The bench, comprising Justices and M.R. , prioritized and ecological restoration, rejecting arguments that the facility constituted a "national asset" essential for domestic refining, as countered by the government's submission that alternative import strategies mitigated any supply shortfall. Vedanta filed a review petition in March 2024 seeking reconsideration, contending errors in the Supreme Court's assessment of compliance evidence and post-closure maintenance data showing no ongoing . On November 16, 2024, the dismissed the review, finding no grounds to revisit its earlier findings on environmental non-compliance and upholding the closure as proportionate to the documented violations. No further appellate relief was granted through October 2025, effectively concluding major litigation efforts for operational revival.

Special and Recent Developments

COVID-19 Oxygen Production Role (2021)

In April 2021, amid the second wave of in causing acute shortages of medical oxygen, , owner of the Sterlite Copper smelter in , , proposed utilizing the facility's captive oxygen plants—originally by-products of —to produce liquid medical oxygen on a stand-alone basis. The plant, shuttered since 2018 following environmental violations and protests, possessed two oxygen units with a combined capacity of approximately 1,000 tonnes per day (tpd), though operations were limited to one unit without restarting activities. On April 26, 2021, the government, via an all-party meeting, permitted partial operations of the oxygen unit for four months to address the crisis, with supplies directed exclusively to government hospitals free of cost. The endorsed this on April 27, 2021, classifying the pandemic as a "national emergency" and allowing production until June 30, later extended to July 31, 2021, while mandating compliance with environmental safeguards and no linkage to smelting resumption. Production commenced in early May 2021, with the first tanker carrying 4.80 tonnes of 98.6% purity medical-grade oxygen dispatched on May 13 to Tirunelveli Medical College Hospital. Operations faced a brief halt on May 14 due to a technical snag but resumed shortly after. By July 7, 2021, the plant had supplied 1,393.76 metric tonnes to 22 districts in Tamil Nadu, though daily output rarely exceeded 90 metric tonnes—far below the pledged 500 tpd capacity—and total production over the roughly two-month period approximated 1,400 tonnes. Vedanta sought a one-month extension beyond July 31, citing ongoing demand, but the government weighed options amid environmental concerns, and production ceased as per court directive without full or long-term revival. Critics, including local activists, argued the initiative underdelivered relative to promises and potentially served as a for plant reopening, though state records confirmed allocations met immediate regional needs without reported quality issues.

Post-Closure Economic Pressures and Restart Proposals (2023-2025)

The closure of the Sterlite Copper smelter in has imposed substantial economic burdens on the local and national economy, including the loss of approximately 30,000 jobs and a reported ₹14,749 crore impact equivalent to 0.72% of Tamil Nadu's GDP, according to a 2022 analysis by the Consumer Unity & Trust Society (CUTS) International. This shutdown reversed India's status as a copper exporter, forcing net imports after nearly 18 years and exacerbating vulnerabilities amid rising global demand for in renewable energy and sectors. Locally, former skilled workers, including engineers, have resorted to informal such as vending, with affected households experiencing up to 50% reductions, fueling persistent unemployment and reduced ancillary business activity in . By 2023, these pressures intensified calls from trade bodies, residents, and industry analysts for reopening the facility to restore livelihoods and bolster domestic production, which had accounted for about 36% of India's refined output prior to closure. In December 2024, protests erupted in , with demonstrators expressing regret over the shutdown's economic fallout and urging government intervention to prioritize revival for employment recovery. , the plant's owner, highlighted the facility's potential to address import dependence, estimating that restart could enhance national output and support self-reliance goals in critical minerals. Restart proposals gained traction in 2025, including a recommendation from a -engaged expert panel for a "green restart" involving advanced emission controls and compliance upgrades to mitigate environmental risks while resuming operations. Local advocates in February and September 2025 proposed conditional reopening under stringent oversight, balancing economic needs with , amid broader discussions in India's July 2025 Copper Vision Document emphasizing sector expansion. However, regulatory hurdles persisted, with March 2025 permissions limited to an 80-day window for machinery relocation to rather than operational revival, and June 2025 clearances focused on site maintenance without approving production resumption. abandoned earlier sale plans, signaling intent to pursue restart amid copper's strategic importance, though authorities maintained opposition citing unresolved pollution concerns.

Corporate Social Responsibility and Recognition

Community Initiatives and CSR Programs

Sterlite Copper, a unit of , has identified eight primary focus areas for its (CSR) efforts: education, health, , women empowerment, infrastructure development, livelihood enhancement, agriculture and , and employee volunteering. These initiatives, implemented primarily in the of , aimed to address local community needs surrounding its smelting operations. In education, the company launched the Sterlite Education Scheme, providing scholarships that have benefited over 14,500 students to date. Additionally, the "Ilam Mottukal" project, focused on promoting , received the BT CSR Excellence for its contributions. For skill development, Sterlite Copper inaugurated a center in collaboration with Vedanta Foundation and Birla Edutech Ltd., targeting initial training for 600 youths with plans to expand to 1,500, including job placement support. Youth development programs emphasized employment-ready skills training in the region. Women empowerment initiatives included an Entrepreneurial Development Programme, with Phase 2 training sessions for 600 women on livelihood skills such as mushroom cultivation and honey production. Environmental efforts featured the "Pasumai " project, a drive aiming for 1 million trees to increase green cover around . In 2019, amid local tensions, the company announced six welfare projects worth Rs 100 , supplementing ongoing activities in health and infrastructure. CSR projects in reportedly benefited over 38,000 people in the financial year ending 2022, aligning with . The company also received recognition for innovative CSR, including the "Best Innovative CSR Project" award at the 9th Edition Forum. These programs continued post-2018 operational suspension, though their scale and impact have been debated in light of persistent environmental disputes.

Awards for Operational and Safety Excellence

Sterlite Copper received the Award in 2017 from the British Safety Council, recognizing outstanding safety management practices and performance. This award, one of the highest honors in occupational health and safety, was granted following a rigorous five-star process evaluating , worker involvement, and . In the field of safety innovation, Sterlite Copper earned a Merit Award from the (ASQ) as part of the International Team Excellence Awards, highlighting achievements in excellence through team-based initiatives. The company was also a finalist in ASQ's International Team Excellence Awards for overall team excellence, which encompassed operational improvements aligned with quality and standards. For operational excellence, Sterlite Copper was awarded the Manufacturing Excellence Award in 2017 by the Frost & Sullivan Institute, acknowledging superior processes, , and . Additionally, the company secured four Gold Awards at the Confederation of Indian Industry's (CII) Quality Circle Convention (CCQC) Chapter in 2025, for projects demonstrating continuous improvement in operational processes, safety enhancements, and resource optimization. These recognitions reflect targeted efforts in systems despite the plant's closure in 2018.

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