Vedanta Group recently advertised in newspapers for Expressions of Interest in the sale of their copper factory in Thoothukudi, which has been closed since 2018 owing to local and activist demonstrations.

The business announced in its Monday ad, “Vedanta, in partnership with Axis Capital, is seeking expressions of interest for the sale of its copper plant, as well as its other units, which include the primary and secondary smelter complexes, sulphuric acid plant, copper refinery, continuous copper rod plant, phosphoric acid plant, effluent treatment plant, captive power plants, reverse osmosis units, and oxygen generation unit, and residential complex.” The firm has requested an expression of interest by July 4, 2022.

The plant has a capacity of 4,00,000 Metric Tonnes Per Annum (MTPA), with an additional 4,00,000 MTPA under construction. The plant employed about 5,000 people directly before it closed, and another 25,000 people were indirectly employed as a result of it. India’s copper demand was met to the tune of 40%. The facility provided 12% of the Thoothukudi port’s earnings, as well as a 96 per cent market share for sulphuric acid in Tamil Nadu.

Sterlite Copper was subjected to a barrage of protests, which resulted in 13 people being killed by police. Following an order from the Tamil Nadu government, the factory has been shut down since 2018. Since its closure, Sterlite Copper officials have been working on a plan to reopen it. The Supreme Court is now reviewing the matter. Officials from the Vedanta Group have previously stated that selling the facility or transferring it out of Tamil Nadu was not an option.

The company’s spokesperson said in a statement, “We are examining options to ensure that the facility and assets are optimally utilised to fulfil the nation’s expanding copper demand in the best interests of the country and the people of Tamil Nadu.”

According to reports, the facility has been losing over Rs 5 crore per day since it was shut down. If the facility is given a licence to reopen, it will cost between Rs 800 and Rs 1,000 crore to renovate.

Local residents and environmental activists had been protesting the facility for quite some time. Massive protests against the project began in March 2018. Thirteen people were killed when police opened fire on protestors outside the factory. Protesters alleged that the factory polluted the surrounding environment. Following the shutdown, Vedanta filed a petition with the National Green Tribunal (NGT) to reopen the plant. The National Green Tribunal granted clearance, but the Tamil Nadu government appealed to the Supreme Court. The NGT order was stayed by the Supreme Court, allowing Vedanta to petition the High Court for the plant’s reopening. After the High Court denied Vedanta’s request to restart the plant, the corporation appealed to the Supreme Court, where the case is still pending.

During the Covid epidemic in 2021, Vedanta Group received permission to reactivate the plant to deliver medical oxygen. The TN government had asked the Supreme Court to rule that the plant should only give oxygen to the state, but the court refused. It was operational for three months until being shut down once the second wave was subsidised. Locals said they had been deceived in the name of the demonstrations and wanted it reopened in December 2021, according to reports.

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