The Supreme Court reviewed a plea against the closure of the Sterlite Copper unit in Tamil Nadu, which has caused legal debate and public concern. Filed by Sterlite Copper, the plea is examined by the Supreme Court bench. The outcome of the review could have important implications for stakeholders and influence industrial operations and environmental policies in India.
Delhi: The Supreme Court reviewed the plea filed by the Vedanta group challenging the closure of its Sterlite copper unit in Tuticorin, Tamil Nadu. On February 15, the Supreme Court postponed the hearing on Vedanta’s request to reopen its Sterlite copper smelter plant in Tamil Nadu to February 20.
The bench, comprising Chief Justice of India DY Chandrachud and Justices JB Pardiwala and Manoj Misra, has instructed the parties involved to circulate short notes outlining their submissions in the case.
Tamil Nadu objected to the reopening of Vedanta’s plant, which fulfilled 36% of India’s copper requirements and exported 50% of its output, generating ₹13,500 crore for the treasury from 2014 to 2018. The state cited significant risks to Tuticorin residents and environmental harm as reasons for its opposition.
Senior advocate Shyam Divan presented the arguments on behalf of the Vedanta Group firm during the proceedings. Additionally, the NGO ‘Manu Neethi Foundation’, represented by senior advocate Vikas Singh, has also asked the Supreme Court for an urgent hearing, citing the extreme difficulties faced by the workers of the Sterlite copper unit.
Representing Vedanta, senior advocate Shyam Divan informed the bench that the closure of the plant by the Tamil Nadu government occurred without any prior show cause notice, disregarding fundamental principles of natural justice. Divan further alleged that foreign NGOs encouraged the 2018 protests subsequent to Vedanta’s public announcement regarding its intentions to expand Tuticorin’s existing facilities to address competition from copper-producing nations such as China.
The bench headed by Chief Justice of India D Y Chandrachud and Justices JB Pardiwala and Manoj Misra sought to reconcile the competing considerations on the twin anvils of public health, environment protection and national interest. “There is a genuine state concern as the custodian of health and lives of residents of Tuticorin. We cannot brush it aside as governments irrespective of political party have supported closure of the plant. At the same time, it is a national asset, as described in our 2013 judgment. There is national interest involved in it as there are only a few copper smelting plants in India. We can ask the panel to examine all issues and give us a report within a month. In addition, we can quantify the damages the plant has to pay for past violations the bench said and posted the matter for further hearing on Thursday.
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He said, “In order to remain competitive and viable, the plant should not only be efficient but have the capacity to expand. The plant, established in 1997 after getting all statutory clearances, including environmental nods, employed nearly 3,000 employees. It was a national asset, as described by the SC itself in its 2013 judgment.”
Appearing for TN, senior advocates C S Vaidyananthan and Gopal Shanakaranarayanan said the state has overwhelming public interest grounds to order shutting down of the plant, which posed serious threat to the lives and health of residents of Tuticorin. Despite Tamil Nadu being a politically polarised state, there is unanimity among political parties over shutting down the copper smelting plant. Vedanta can sell its assets and go somewhere else,” they said.
Earlier directives from the Supreme Court had mandated the allocation of “two dedicated dates” for hearing Vedanta’s plea. In May last year, the court directed the Tamil Nadu government to make appropriate decisions based on its directive, which was made by April 10, allowing Vedanta to conduct maintenance activities under the supervision of a local monitoring committee.
On April 10, 2023, the court permitted the evacuation of the remaining gypsum and manpower at the plant as requested by the company. However, the district collector did not recommend certain activities, including safety assessments and material evacuation.
The Supreme Court had instructed that all necessary decisions related to its observations be made by the state of Tamil Nadu before June 1, 2023. The closure of the Sterlite copper unit in Tuticorin was initiated by violent protests in May 2018, resulting in casualties and concerns over pollution attributed to the facility.
The bench led by the Chief Justice of India expressed its reluctance to permit Vedanta to renovate the plant or resume operations via an interim order. Nevertheless, the bench suggested that a panel composed of representatives from the National Environmental Engineering Research Institute (NEERI), Central Pollution Control Board (CPCB), Tamil Nadu Pollution Control Board, and three distinguished environmental experts should reassess the plant’s feasibility and, if feasible, its reopening under strict conditions.
“There is a genuine concern of the state as custodian of the health and lives of residents of Tuticorin. We cannot brush it aside as governments irrespective of political party have supported closure of the plant. At the same time, it is a national asset, as described in our 2013 judgment. There is national interest involved. We can ask the panel to examine all issues and give us a report within a month. In addition, we can quantify the damages the company has to pay for past violations,” the bench said.
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