SVKM’s NMIMS University

Corporate Social Responsibility

Sterlite Copper Saga1

The Issue

In February 2018, around 250 people went on a hunger strike in Thoothukudi2 in the southern part of
Tamil Nadu protesting against the Sterlite Copper plant’s proposed expansion (PTI, 2018). Despite
current pollution charges levied against the company and adverse impact of its operations on the
health and livelihood of the people living in the neighbourhood, the company had decided to double
the capacity of its smelter from 400,000 tonnes to 800,000 tonnes per year (Das, 2018). The company
had been trying to expand its production for over a decade inspite of widespread public opposition,
legal and environmental hurdles. Finally the company managed to get the permission for the
expansion of the plant capacity based on the wrong land location/use declaration (Special
Correspondent, 2018).

To counter the above, the protesters wanted the Sterlite Copper plant in Thoothukudi shut as it did
not comply with environmental laws and dumped copper slag into the water spread areas of the Uppar
river. The protesters claimed that the plant polluted air and ground water since 1996 (ET online,
2018). The slogan on the lines of “Copper for Sterlite and Cancer for us” was renting air for few
months in the villages of the vicinity (Priya, 2018). The people of the village had petitioned their case
to the district collector several times for seeking closure of the unit. In the context of the protests the
Tamil Nadu Pollution Control Board ( TNPCB) rejected the company's application to renew the
license to operate the plant beyond March 31, 2018 (Scroll.in, 2018).

The protestors decided to continue their fight for 100 days. They submitted a petition to the Collector
on the 30th day, and were promised a response in 10 days; but they never got an answer (Smitha,
2018). On May 22, fifty thousand people marched towards the Collectorate shouting slogans of “Shut
down Sterlite!” When they were just two kilometres away from the Collectorate, they were informed
that Section 144 was imposed in the area, prohibiting an assembly of people. They were not allowed
to walk further. This further enraged the protestors as they wanted to submit a petition to the Collector.
There was a scuffle between the protestors and the police which resulted in firing by the police as the
situation had turned violent (Ananth, 2018).

1
Case documented by Dr. Meena Galliara, School of Business Management, NMIMS
Editing support: Dr. Srinivas Ainavolu & Dr. Sujata Mukherjee, School of Business Management, NMIMS
2
Thoothukudi, also known by its British name Tuticorin, is a port city and an industrial city in Thoothukudi
district in the Indian state of Tamil Nadu. The city lies in the Coromandel Coast of Bay of Bengal.

1
Post the May 22nd incident, The Madras High Court put the stay order on the expansion plan of Sterlite
Copper and ordered the company to stop construction of a new smelter with immediate effect. The
Court order stated that the renewal of environment clearance for copper smelter plant project shall be
decided by the competent authority on or before 23 September. Subsequently the factory has been
non-functional and the company is awaiting approval from the authorities to resume operations at the
site (Business Today.in, 2018).

Responding to the Court order Mr. Ramnath, CEO of Sterlite said, “False propaganda dominated
over the truth about the company. We are deeply saddened and aggrieved by the loss of 13 innocent
lives in the unfortunate incident on May 22, 2018 at Tucorin town, a few kilometers away from our
plant. While it is an irreparable loss to these families, Vedanta as a responsible corporate citizen and
on humanitarian grounds, would like to extend all possible support to families of deceased and
severely injured. The company is still deciding on its future course of action regarding the plant
closure order. Closure of Sterlite Copper plant is an unfortunate development, especially since we
have operated the plant for over 22 years in most transparent and sustainable way, contributing to
the Thoothukudi and state's socio-economic development. We will decide on the future course of
action (IANS, 2018)."

Copper Industry

The copper industry is a major contributor to the global economy. Increase in infrastructure activities
in developing countries is expected to boost the demand for copper in the next few years.
Additionally, advancement in global manufacturing output as in transportation equipment, industrial
machinery, domestic appliances, and other durable goods is estimated to augment the demand for
copper. Copper is used widely in infrastructural activities in the form of copper tubing, taps, valves,
tanks, connections, and fittings (Transparency Market Research, 2016). Copper spurs employment in
both local and regional economies for a wide range of jobs, from plumbers and electricians to
automotive workers and electronic equipment manufacturers (About Copper, 2018).

Copper mining is important to human development, yet it does not come without costs. Copper
production, including mining, smelting and refining, is a hazardous industry that produces toxic
byproducts like lead, arsenic and sulphur oxide that adversely impact water, soil and air quality (Sofia,
2018). According to CARE Ratings (2017), India has limited copper ore reserves constituting to about
2% of the World Copper reserves, but accounts for 4% of the refined copper production. India is the
net exporter of refined copper and ranks 7th in global refined copper production and 5th in copper
smelter production globally. There are three major players which dominate the copper industry in the
Indian Markets. Hindustan Copper Limited (HCL) in Public Sector, Hindalco Limited and Vedanta
Industries Limited in the private sector.

About Vedanta

Mr Anil Agarwal, lead promoter of Vedanta Resources which is listed on London Stock Exchange
commenced his business in 1969 as scrap metals dealer in Mumbai. In 2003 he formed Vedanta
Resources (Infospaze, 2018). Today it is a globally diversified natural resources company with
interests in Zinc, Lead, Silver, Copper, Iron Ore, Aluminium, Power, Oil & Gas (Vedanta n.d). In
1979 he acquired Sterlite Industries now known as Sterlite Copper. During nineties and subsequently,

2
Sterlite Industries divested in Aluminium and Zinc businesses in India. Vedanta owns 53.9% stake
in Sterlite Copper (Infospaze, 2018). For the FY 2016-17 Vedanta’s turnover was Rs. 71,000 Crore
with EBIDTA margins of 5%. (Vedanta Resources, Annual Report 2017)

About Sterlite Copper

In 1992 Sterlite Copper had plans to set up its smelter plant in Ratnagiri District of Western
Maharashtra. The plan was foiled as the fishing community, farmers and environmentalists of the
region highlighted the smelter’s potential to destroy fishing and agriculture. In 1994, the project was
permitted to be set up in Thoothukudi in Tamil Nadu, by the then Chief Minister. Subsequently
Sterlite Copper was set up in 1997 within the State Industrial Promotion Corporation of Tamil Nadu
(SIPCOT) complex in Thoothukudi district (Bose, 2018).

Currently the company operates a 400,000 metric tonnes per annum (MTPA) Copper Smelter with
associated facilities such as Refinery and Copper Rod Plant, Sulphuric Acid plant of more 12,00,000
MTPA and a Phosphoric Acid of 220,000 MTPA at Thoothukudi, Tamilnadu. The company also
operates a 160 MW coal based power plant in Thoothkudi, Tamilnadu. It also has two units in
Silvassa in the Union Territory of Dadra & Nagar Haveli where it operates two Copper Rods Plants
("Sterlite Copper - a Vedanta Company", n.d.).

Sterlite Copper catered to 36 per cent of the total domestic copper market demand in the country with
the balance getting exported. The company employed 3,500 people directly and over 30,000 people
indirectly (Sharma, 2018). For the FY 2016-17 Sterlite Copper recorded turnover of Rs. 21,017
crores. The EBIDTA was 8.1% (Vedanta Resources, Annual Report 2017).

As part of its social responsibilities the company makes maximum contribution to uplift the quality
of life of women, children and youth in the communities where it operates. In recognition of its efforts
Sterlite Copper was given the prestigious BT-CSR Excellence Award 2017 in the education category
for its project‘Ilam Mottukal’ which was undertaken to improve quality of girls’ education (Staff
Reporter, 2017).

Vision & Mission

The company’s vision is “To be the world's most admired copper producer, committed to create
enhanced value to all stake holders ensuring excellence, innovation and sustainability (Sterlite
Copper, n.d).”

The mission statement reads “Ensure zero tolerance towards safety, environment and governance;
Be one of the largest single location copper producer in the world at lowest cost; Ensure all resources
for long term sustenance; Continuously upgrade technology to ensure high quality products and
services to sustain market leadership and surpass customer expectations; Touch and transform lives
of the community; Create a workplace that respects and values all employees and promotes
innovation; Develop downstream industries in line with Tamil Nadu Vision 2023” ("Sterlite Copper
- a Vedanta Company", n.d.).

3
Blatant Violations

The Sterlite Copper complex has been set up at 14 Km away from the Gulf of Mannar, which is a
diverse and sensitive marine ecosystem. This in principle violates TNPCB’s conditions attached to
the ‘Consent to Establish’. TNPCB had requested the company to set up the smeltering plant 25 km
beyond Gulf of Mannar National Park and develop a green belt of 250 m wide around the factory.
TNPCB was pressurized by the then ruling political party to grant the NOC without adhering to its
conditions.

The company did not even submit the Environmental Impact Assessment which is a necessary
requirement under the Environment Act (1980), despite the fact that the EIA notification had been
issued in January 1994 (ADR, 2018). The Ministry of Environment and Forests (MoEF) had allowed
Sterlite to set up and run its factories at levels far in excess of consented production levels. The MoEF
regularised illegal constructions of the company. Consequentially there have been widespread
protests against the establishment and operation of Sterlite Industries in Thoothukudi by local
residents since the mid-1990s at frequent intervals (See Exhibit I).

Environmental Violation

Environmental activist Nityanand Jayaraman3, has written extensively about the role played by state
regulatory authorities like TNPCB, the Ministry of Environment, Forests and Climate Change
(MoEFCC) and the local district administration in facilitating Sterlite. The National Environmental
Engineering Research Institute (NEERI) and the TNPCB at various times have found evidence that
Sterlite contaminated the groundwater, air and soil with its effluents and also violated standards of
operation (Jayaraman, 2018). A 2005 report by NEERI found high concentrations of copper, lead,
cadmium, arsenic, chlorides and fluorides in a sample of groundwater taken from the plant’s
neighbourhood (Sofia, 2018).

The environmental clearances obtained by the company have for long been a subject of bitter
objections by the local people, particularly the fisherfolk (Sridhar, 2001). In particular, the copper
smelter project's EIA aroused much controversy. A scientist associated with Greenpeace, on a visit
to Chennai in 1997, remarked that the EIA was "one of the shoddiest pieces of work" that he had ever
seen. The EIA remained silent on parameters related to suspended particulate matter (SPM),
particularly those relating to levels of heavy metal such as lead in the effluent discharged by the plant
(Nostromo Research & India Resource Center, 2005).

Toothukoodi plant was always in the eye of the storm around environmental issues. Various NEERI
reports between 19980- 2005 on Sterlite Copper showed that the plant was polluting the environment
through emissions that did not conform to the standards laid down by the TNPCB under the Air Act

3
Chennai based researcher and social activist. He is part of an anti-corporate collective called Vettiver
Koottamaippu, and involves himself in mobilising youth to lend solidarity to social and environmental
justice struggles around the country.

4
(1981) and Water Act (1988). The Supreme Court, in its April 2013 verdict, had slapped a fine of
₹100 crore on Sterlite, applying the “polluter pays” principle.

Endangering Life

In 2006, researchers from Tirunelveli Medical College conducted an epidemiological study in an area
within a five-km radius of Sterlite Industries. According to the report, a high prevalence of asthma,
pharyngitis, sinusitis and other respiratory tract infections, all proxies for the presence of harmful
gases and particulate irritants were found in the local area. The report also found an inexplicably high
incidence of menstrual disorders, like menorrhagia and dysmenorrhea, in women living in the area
(Rejimon, 2018). There were increased reported incidents of respiratory and cancer related illnesses
and deaths. Due to this of late the slogan, “Copper for Sterlite, cancer for people” has been heard in
villages around the Sterlite complex in Thoothukudi (Priya, 2018).

In 2010, the Environmental Law Alliance Worldwide, authored a report that concluded, “Recent
evidence conclusively demonstrates that the Sterlites Industries (India) Limited copper smelting
complex in Thoothukudi (SIIL) is endangering human health and the environment and contaminating
water supplies”. The report also found high levels of iron (a toxin in high quantities), cadmium, nickel
and arsenic in soil samples collected from near the plant. The water from wells and hand pumps in
the area were unsuitable for agriculture and that they could damage crops if used for irrigation.
(Chernaik, 2010). Madati from Kumareddiapuram shares “The land has remained fallow and barren.
Though it is rain-fed dry land, we used to cultivate pulses, maize, and so on. But farming is no longer
feasible” (Rajsekharan, 2018).

Safety Standards

The company’s union claimed that most of the workers at the company's smelter in Thoothukudi are
contract labourers engaged by contractors. The union had repeatedly complained of the sloppy safety
standards at the plant endangering lives of employees. The company was subjected to intense media
scrutiny after an explosion occurred in the plant in August 1997. At least two workers had died, and
two were maimed, in industrial accident. The explosion ripped off the lid of the rotary holding
furnace. Molten metal at about 120 degree Celsius fell on the workers. Union sources said that only
skeletal remains were recovered from the furnace. The union, backed by human rights organisations,
later claimed that complaints from the workers were ignored by the management (Frontline, October
3, 1997).

The Facebook post of a well-known environmental activist in India also alleged that the Sterlite plant
is not taking care of the health and safety of its workers. His post said, "Sterlite worker, Kartheepan,
lost his hand in an accident in Vedanta Sterlite's controversial copper factory in Thoothukudi.
Kartheepan's injury has maimed him for life. His left hand had to be amputated at the wrist. His hand
was sucked into the conveyor with such force that two ribs were broken and nerves in his shoulder
have been permanently damaged." After working for four years in the plant, his medical expenses
were covered by ESI (Employees’ State Insurance) payments, but his long wait for a pension of Rs
5,000 that he is entitled to, continues. The amount is a pittance compared to his loss, but even that is

5
nowhere in sight. To add to his woes, Kartheepan’s wife, who also worked at the factory, is now
without a job after the Tamil Nadu government ordered the plant’s closure on May 28. Kartheepan is
one among the many injured workers who has not yet received compensation from Sterlite. Adhisaya
Kumar, a lawyer who has been fighting cases on behalf of Sterlite workers shares, “Some settlements
for families whose breadwinners have died in the factory premises go up to lakhs of rupees, and are
settled unofficially (Karthikeyan, 2018).

Investors Ban

Thoothukudi is not alone in its suffering in the hands of Vedanta or its subsidiary Sterlite. Vedanta
Resources (London) and its subsidiary Konkola Copper Mines are currently being sued in English
courts by Zambian villagers for polluting their water and destroying their livelihoods through its
mining operations (Sofia, 2018). In 2007 the Norwegian Council of Ethics had blacklisted Vedanta
and advised the Norwegian Government Pension Fund to divest Vedanta stocks, and not invest in the
company as it was found violating established norms on human rights, worker safety and
environmental compliance (Chandrasekhar, 2017). In February 2015 and 2016, Vedanta had written
to the council asking for a review of the 2007 decision. In 2016, the council concluded that grounds
for exclusion continue to exist (Karthikeyan, 2018).

Impact

Shares of Vedanta fell 6% after protests against the closure of Vedanta group’s Sterlite Copper plant
turned violent in May 2018 (PTI, 2018). The 'Sterlite Protest' has reached as far as London, with a
large number of British Tamils carrying traditional 'parai' drums held a protest outside the home of
Vedanta Group chief Anil Agarwal. "It is time the British government stopped supporting Sterlite
and de-list Vedanta from the LSE," said Miriam Rose from Foil Vedanta, one of the organisers of the
London protest alongside Tamil People in UK and Parai, Voice of Freedom (PTI, 2018).

The Issue Ahead

In 2017-18, Sterlite produced about 48 per cent of country's total copper output of 842,961 tonnes
and accounted for 36 percent of domestic consumption. Shutting down the plant is likely to force
India to import Copper. The shutting down of Sterlite Copper in Thoothukudi will reduce India's
copper production by about half, forcing imports. The closure is likely to cost India USD 3 billion
in Forex annually (FP staff, 2018). In an interview to Business Today, Sterlite Copper CEO said,
“The sudden and arbitrary decision of Tamil Nadu government to close down Thoothukudi unit will
have far-reaching ramifications for the economy of not only the town and its adjoining villages but
also the country. While an estimated 30,000 direct and indirect jobs are now on the line, a large
number of small to medium enterprises that are dependent on our smelter for copper are also likely
to suffer due to supply disruptions” (Business Today.in). With Vedanta producing almost half of
India’s copper output, seventy five percent being used in domestic market, sectors ranging from
Electrical to Defence shall be affected by the sudden closure of this plant (NIE, 2018). Due to
erstwhile copper exports not happening, the adverse bearing shall be on Forex as well. India may turn
into a net importer of copper by the year ending March 2020 if no new plant is commissioned.

6
In the given context the moot point for debate is should Sterlite Copper be allowed to function and
what should be the way ahead? What should be the role of business- pursuing profits or protecting
people and planet?
References

About Copper. (2018). Copper Alliance. Retrieved from http://copperalliance.org/about-copper/the-

copper-industry/
Ananth, M. ( June 9,2018). Sterlite row: Post-police firing transfer of officials continues in
Tuticorin - Times of India. Retrieved from https://timesofindia.indiatimes.com/city/madurai/sterlite-
row-post-police-firing-transfer-of-officials-continues-in-tuticorin/articleshow/64517391.cms

Bose R. (May 23, 2018).Tuticorin’s Sterlite Plant No Stranger to Controversy, Had Faced Closure
Once. News 18. Retrieved from https://www.news18.com/news/india/tuticorins-sterlite-plant-no-
stranger-to-controversy-had-faced-closure-once-1756619.html
Business Today.in. (May 23, 2018). Anti-Sterlite protests claim 11 lives: All you need to know
about Tuticorin stir. Retrieved from https://www.businesstoday.in/current/economy-politics/sterlite-
copper-protests-tuticorin-violence-vedanta-sterlite-smelters/story/277532.html

Chandrasekhar A. (March 18, 2018).Why the World’s Largest Sovereign Wealth Fund is Leaving
Indian Companies in the Cold and What That Tells Us About Make in India. The Wire. Retrieved
fromhttps://thewire.in/business/norway-wealth-fund-blacklists-vedanta-indian-firms
Chernaik M. ( December 1, 2010). Environmental Aspects of Sterlite Industries(India) Ltd Copper
smelting complex in Tuticorin. Environmental Law Alliance
Worldwide.http://www.sipcotcuddalore.com/downloads/Mark_Chernaik_opinion_letter.pdf
Copper Market - Transparency Market Research. (2016). Copper Market to Account for US$171.96
bn by 2023, Construction to Remain Largest Application Segment. Retrieved from
https://www.transparencymarketresearch.com/pressrelease/copper-market.htm
Das, K. (May 29, 2018). Vedanta prepares legal challenge to India copper plant closure after fatal
protest - sources. Reuters. Retrieved from https://in.reuters.com/article/vedanta-smelter-
litigation/vedanta-prepares-legal-challenge-to-india-copper-plant-closure-after-fatal-protest-
sources-idINKCN1IU27Y

ET Online (May 25, 2018). Why are people against Vedanta's Sterlite plant in Tuticorin? 6 things
you should know. Retrieved from
http://economictimes.indiatimes.com/articleshow/64273066.cms?utm_source=contentofinterest&ut
m_medium=text&utm_campaign=cppst
ET Online. ( May 25,2018). Why are people against Vedanta's Sterlite plant in Tuticorin? Economic
Times. 6 things you should know. Retrieved from
https://economictimes.indiatimes.com/news/politics-and-nation/whats-wrong-with-vedantas-
sterlite-unit-in-tuticorin-6-things-you-should-know/articleshow/64273066.cms

7
FP Staff. (May 29, 2018).Sterlite plant closure could spawn copper shortages nation-wide; imports
to cost around $3 billion in forex annually. First Post. Retrieved from
https://www.firstpost.com/business/sterlite-plant-closure-could-spawn-copper-shortages-nation-
wide-import-to-cost-around-3-billion-in-forex-annually-4486663.html
Hume N.(May 24, 2017). Vedanta Returns to Profits. Financial Times. Retrieved from
https://www.ft.com/content/649ac9a2-6d70-3190-ab2d-3f6cfa95cd94
IANS. (May 31, 2018). In Tuticorin, false propaganda dominated over truth: Sterlite Copper CEO.
Retrieved from
//economictimes.indiatimes.com/articleshow/64399237.cms?utm_source=contentofinterest&utm_m
edium=text&utm_campaign=cppst
Infospaze.(2018). Vedanta Resources. Retrieved from
http://www.infospaze.com/Vedanta_Resources
Jayaraman N. ( June 4, 2018). Environmentalist Nityanand Jayaraman LMES' video on
Thoothukudi Sterlite. The News Minute. Retrieved from
https://www.thenewsminute.com/article/environmentalist-nityanand-jayaraman-responds-lmes-
video-thoothukudi-sterlite-82466
Karthikeyan, D. (2018). Sterlite Workers: 'Anil Agarwal Can't Undo Our Pain. Where Do We Go
From Here?'. The Wire. Retrieved from https://thewire.in/labour/vedantas-anil-agarwal-cant-undo-
our-pain-where-do-we-go-from-here
NIE, 2018 – New Indian Express, the daily newspaper, accessed online on 12th June 18.
Nostromo Research & India Resource Center. (2005). VEDANTA RESOURCES plc COUNTER
REPORT 2005-Ravages through India [Ebook]. London. Retrieved from
http://www.indianet.nl/vedanta.pdf
Priya KV.(May 2018).Copper for Sterlite, Cancer for People. MIG. Retrieved from
https://mediaindia.eu/business-politics/copper-for-sterlite-cancer-for-people/
PTI. ( Feb 13, 2018). Protesters against Sterlite Copper plant in Tuticorin arrested. Indian Express.
Retrieved from http://www.newindianexpress.com/states/tamil-nadu/2018/feb/13/protesters-
against-sterlite-copper-plant-in-tuticorin-arrested-1772817.html

PTI. (March 25,2018). British Tamils protest outside Vedanta chief's home in London. Business
Standard. Retrieved from https://www.business-standard.com/article/pti-stories/british-tamils-
protest-outside-vedanta-chief-s-home-in-london-118032500372_1.html
PTI. (May 23, 2018). Vedanta shares drop 6% after Sterlite protests in Tamil Nadu. Live Mint.
Retrieved from https://www.livemint.com/Money/vcuaD76r1CSfmJw2kAVCBK/Vedanta-shares-
hit-10month-low-over-protests-against-copper.html
Rajasekaran I. (June 22, 2018). Saga of a struggle. Frontline. Retrieved from
https://www.frontline.in/the-nation/saga-of-a-struggle/article10106626.ece

8
Rejimon K. ( June 8, 2018).In Thoothukudi, the Choice Before People Was to Die of Cancer or
Bullets. The Wire. Retreived from https://thewire.in/environment/in-thoothukudi-the-choice-before-
people-was-to-die-of-cancer-or-bullets
Scroll.in. (2018). Tamil Nadu Pollution Control Board refuses to renew Sterlite Copper’s licence to
operate. Scroll.in. Retrieved from https://scroll.in/latest/875153/tamil-nadu-pollution-control-board-
refuses-to-renew-sterlite-coppers-licence-to-operate

Sharma E K.(2018).Sterlite plant closure to cost India $3 billion annually; copper price to rise.
Business Today. Retrieved from https://www.businesstoday.in/current/corporate/sterlite-plant-
shutdown-in-tuticorin-could-trigger-temporary-spike-in-copper-price/story/277914.html
Smitha TK.(May 26, 2018).Tuticorin Residents Recount the Horror of Anti-Sterlite Protests.
Bloomberg. Retreived from https://www.bloombergquint.com/quint/2018/05/26/anti-sterlite-
protests-tuticorin-may-22-2018-residents-police-firing-politicians
Sofia L. (April 4, 2018). As Sterlite Plant Expands, a City Erupts in Protest. The Wire. Retrieved
from https://thewire.in/environment/anti-sterlite-protests-fuelled-by-weak-sanctions-and-political-
connections
Sridhar V. (2001). Sterlite's Record. Frontline, Volume 18- Issue 6, March 17-30. Retrieved from
https://www.frontline.in/static/html/fl1806/18060320.htm
Special Correspondent.(May 27, 2018).Anti-Sterlite protests: In Thoothukudi, how copper came a
cropper. The Hindu. Retrieved from http://www.thehindu.com/news/national/tamil-nadu/how-
copper-came-a-cropper/article24003304.ece
Staff Reporter.( August 24, 2017). Sterlite Copper given CSR Excellence Award. The Hindu.
Retrieved from http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/sterlite-copper-
given-bt-csr-excellence-award/article19549756.ece
Sterlite Copper - a Vedanta Company. Retrieved from https://www.sterlitecopper.com
Vedanta Transforming Elements.(n.d). About Us. Retrieved from
http://www.vedantaresources.com/about-us.aspx
Vedanta Resources Annual Report.(2017). Stronger, smarter, sustainable. Retrieved from
http://www.vedantaresources.com/media/213717/vedanta_resources_ar_fy2017.pdf
The Wire. (April 4, 2018).As Sterlite Plant Expands, a City Erupts in Protest. Association for
Democratic Reforms. Retrieved from https://adrindia.org/content/sterlite-plant-expands-city-
erupts-protest

9
 Exhibit I
Timeline of events and violations
Year Violation Impact
1994 Tamil Nadu Pollution Control Board (TNPCB) grants Early protests by locals were
No Objection Certificate (NOC) for construction of the systematically dismantled by the
plant under following two conditions: 1) The plant Tamil Nadu government with the
should be situated no less than 25 Kms from Gulf of help Thirunelveli District
Munnar (GoM) and 2) A green belt of 250m around the collectorate and police.
factory must be developed. Sterlite violated both and
constructed the factory about 14 Kms from the GoM In 1995 Ministry of environment
and developed no green zone. grants environment clearance
without Environment Impact
Assessment (EIA) TNPCB grants
Consent for Establishment
without EIA.
1996 TNPCB issues Consent of Operation, set production A small group of fishermen
limit to 40,000 tonnes. Sterlite violates the set protest, but they are swiftly
production limit and produces 170,000 tonnes of brushed aside by government.
copper with disregard towards pollution levels. It also
begins expansion of the plant without approvals from Throughout the year, multiple
government. complaints of water and air
pollution are raised with district
collectorate. All of them are
silenced. National Trust for Clean
Environment (NTCE) files a case
for permanent closure of the plant
1997 Agitations picked up when news about toxic gas leaks In August 1997, George
from the plant after routine maintenance reached locals. Fernandes and Vaiko inaugurate
Over 100 people were affected and half of them were protests organised by NTCE
hospitalized. Preliminary inquiry by TNPCB ascertains demanding permanent closure of
that it was caused by Sulphur Dioxide emissions from the plant
the factory.

10
Year Violation Impact
1998 Sterlite was found guilty by the SEBI on an “insider The Madras high court ordered
trading” charge and was barred from acquiring capital the closure of the factory on
from the market for two years. November 23, 1998 However, a
Madras high court orders the National Environmental week later, the Madras high
Engineering Research Institute (NEERI) to submits a court did a U-turn and asked
reports on Sterlite. The Report concludes that Sterlite: NEERI to conduct another study.
1.Had failed to develop a greenbelt
2.Was producing unauthorized products
3.Had contaminated the groundwater with arsenic,
lead, selenium, arsenic, aluminum and copper.
4.May have tampered with the online air monitors
installed at TNPCB
5.Had caused toxic gas leaks
6.Had located itself 14 Kms from Gulf of Mannar
(GoM) without consent
1999 NEERI submits its second report on Sterlite just 45 In the same year, people
days after the first one and curiously this time cleared complained about toxic gas
Sterlite of all earlier charges. It also recommended the leaks. They were brushed aside
factory operate at full capacity. NEERI was asked to by District administration. The
conduct a detailed study the report was published in Chief Minister permitted Sterlite
2003. It once again cleared Sterlite of any wrongdoing. to double its capacity to 70,000
tonnes.
2000 Locals complain to TNPCB about the release of arsenic No action taken
laced toxic waste water by Sterlite
2003 A public hearing was held on the unauthorized Much of the construction for the
expansion of copper refinery. expanded capacity had already
begun by the time of the public
hearing.

Public hearing was held for only

a few of the newly added
components. Units such as the
oxygen plant, power plant and
continuous cathode rod plant are
neither declared, nor included in
the EIA or public hearing.

2004 Supreme Court Monitoring Committee (SCMC) on A day after Supreme Court
Hazardous Wastes visits Sterlite and finds the company Judgment MoEF grants
in violation of the following consent conditions: environmental clearance to all
1.Set-back from Gulf of Mannar illegal units set up without
2.Green belt violations consent.
3.Excessive and improper storage of hazardous waste
onsite TNPCB finds that Sterlite was
operating over its production

11
 4.Exceeding production by more than 4 times the limit of 70,000 tonnes (165,000
consented capacity tonnes produced in a year)
disregarding the impact it had on
It also concludes that the company has expanded and the environment
set up new units and factories within the site with no
permission, or clearance from the Ministry of
Environment and Forest (MoEF). It recommends to
revoke the environmental clearance provided and
prevent any further clearance from being provided. It
directs TNPCB to conduct further investigation.
2005 SCMC writes to TNPCB directing the Board to issue NEERI finds high concentration
show-cause notice to Sterlite for constructing factory of copper, lead, cadmium,
without permission. However, only a few months later, arsenic, chlorides and fluorides
both MoEF and SCMC direct TNPCB to issue a in a sample of groundwater
Consent for Operation for all illegally constructed units taken from the plant’s
within the plant. Sterlite, through whatever means, neighborhood
continue to expand and pollute.
2006-2008 Department of Community Medicine from the
Tirunelveli medical college begins a study on health
standards around the Sterlite plant. The two year study
was published in 2008. The report concludes the
following:
1. Iron content of ground water in surrounding villages
is high.
2. Hardness of water around is very high than the
surrounding region.
3. Arsenic, however, was not found in the samples
collected.
Among the 80,725 individuals studied within a radius
of 5 Kms from the plant the following are the findings:
1. Respiratory illnesses like asthma are more prevalent
in the region due to increased air pollution.
2. Females in the region suffer from more menstrual
disorders.
3. Alcohol consumption and smoking is common
among Sterlite employees due to the high stress
environment they work in.
4. General body pain is widely reported.
5.ENT problems are more prevalent in the region
2009 MoEF grants Sterlite environmental clearance to
expand the copper smelting plant without public
consent
2010 Dr. Mark Chernaik of the Environmental Law Alliance In September, the Madras high
Worldwide conducts a study on Sterlite and court ordered the closure of the
concludes the following: factory citing all violations.
Only three days later, Supreme

12
 1. Sterlite endangers human health and the court reversed the high court’s
environment. It contaminates soil, water and air. order and allowed the company
2. High levels of iron, arsenic, cadmium and nickel, all to reopen.
of which are toxic, are found in the soil samples
collected in the region.
3. Water samples collected vicinity shows high level
of sulfate and calcium. It is an indication that Sterlite
has contaminated water supplies. The water is unfit
for direct consumption or agriculture.
In the same year, Community Environmental
Monitoring, an NGO, conducts study of water and
soil samples in the vicinity and found the following:
1. The salinity of water in the open well (7854mg/L)
were over four times higher than levels that can
cause crop damage.
2. Another water sample showed very high levels of
Sulfate and Calcium.
3. A soil sample showed high levels of iron that can
cause severe poisoning in a child.
4. Arsenic levels in the same location were quite high.
5. Cadmium that can cause lung cancer and other
kidney issues was ten times the average.
6. Kalangarai odai (a stream that runs through Sterlite)
showed very high concentration of iron - 477 times
above those that can cause serious health issues.
2011 NEERI collects samples from 12 well in the regions
and concludes that all of them are contaminated. Nine
samples contained high levels of Sulfate and Iron while
five contained high levels of fluoride. This study also
found groundwater samples taken from outside the
factory were contaminated. Four of the 7 samples
exceeded standards for Sulfates, calcium and
magnesium
2013 On March 23, over 5000 people are affected by two On March 29, Madras high court
bursts of massive toxic gas leak from the plant. orders the plant to close down
citing violations of pollution
control. This decision is also
overturned at the supreme court.
While supreme court agrees that
Sterlite had violated pollution
prevention acts, it fined the
company INR 100 crores. In
May the National Green
Tribunal rules in favour of the
company, allowing it to reopen

13
 2014 A PIL filed at the Delhi high court reveals that both Corporate funding of political
BJP and Congress had been receiving large sums of parties strengthened the
money from Sterlite and other subsidiaries of Vedanta corporate – politics nexus. This
as political donations. It is also found that Sterlite was helped Sterlite to use unfair use
the highest donor for both the parties during the 2014 of its power and continue with
general elections. its violations.

Vedanta paid the parties a total of Rs 9 crore between

FYs 2004 and 2010. Sterlite Industries was the most
generous, having paid the Congress Rs 1 crore and Rs
5 crore in 2004-05 and 2009-10 respectively. The BJP
received a total of Rs 15 crore from Sterlite Industries,
and Rs 7.5 crore from Cairn India – a Vedanta
Resources subsidiary – in the FY ending March 31,
2014, the year the Lok Sabha elections were held.

2016 The Madras high court dismisses a writ petition

challenging the environment clearance granted to
Sterlite.
2017 Sterlite proposes another expansion that would put is
just 200m away from Kumarareddyiapuram, increasing
its capacity from 420,000 tonnes to 800,000 tonnes. It
quickly obtains all clearances from TNPCB and MoEF
for this expansion and begins expansion that threatens
livelihood in the region
2018 Nityanand Jayaraman, an activist and his NGO, publish Protests erupted once again
a report on how the Government helps Sterlite to demanding immediate stop to
violate the law expansion and permanent
closure of the factory.
May 22, On the 100th day of protests, protesters thronged the Due to chain of violent incidents,
2018 Collector office demanding justice. police opened fire on the
innocent civilians participated in
the protests. Thirteen were dead
and scores were injured due to
this firing.
Source: https://www.quora.com/What-is-the-truth-about-the-sterlite-issue-in-Tamil-Nadu

14
15