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Tamil Nadu government orders permanent closure of
Sterlite plant

The Tamil Nadu government on Monday ordered the closure of the Sterlite Copper
factory in Thoothukudi, marking a significant setback for the Anil Agarwal-owned
Vedanta unit, which is at the centre of a violent agitation led by residents who claim
the smelter has caused widespread pollution of air and water in the southern city.

The government order endorsed the Tamil Nadu Pollution Control Board’s directive
last week to close the unit citing constitutional provisions to “provisions to “protect
and improve the environment,” and “in larger public interest.” Within an hour of the
order announced on Monday afternoon, district officials of Thoothukudi, headed by
Collector Sandeep Nanduri, arrived at the plant to seal the premises.

“The decision to close the plant was arrived at upon consideration of the interests
and sentiments of the people of Thoothukudi,” said chief minister Edapaddi
Palaniswami speaking to reporters in Chennai.

He said that the prospect of a legal battle by Vedanta-Sterlite against the


government order was “imaginary.”
Shares of Vedanta closed 0.48% higher on Monday at Rs 253.10. The stock had
fallen to a 10-month low on May 23 and had been recovering since.

In a post on microblogging site Twitter, Ramnath P, CEO of Sterlite Copper, wrote


“halting a big industry like Sterlite Copper has serious implications on the economy.”
The three-month long agitation demanding closure of the plant turned violent last
week as the state police fired at unruly mobs, resulting in the death of thirteen
people.

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