SC dismisses Vedanta's plea for reopening Tuticorin plant

In a major setback for Anil Agarwal-promoted Vedanta Group, the Supreme Court on Thursday rejected its plea to reopen the Sterlite copper smelting plant in Tamil Nadu’s Tuticorin due to ‘serious violations’.

The apex court upheld the Madras High Court's 2020 judgment in favour of the state government and Tamil Nadu Pollution Control Board’s (TNPCB) decision to shut down the plant for causing environmental hazards.

While rejecting the plea, the apex court highlighted ‘repeated breaches’ and ‘serious violations’ on the part of the company.

The SC said that no serious error in HC's approach could be proved by the petitioner to warrant interference.

The SC bench headed by Chief Justice of India DY Chandrachud noted that although the plant contributed to generating revenue and employment, the Madras HC was right in upholding the principle of sustainable development, the polluters pay principle and the public trust doctrine.

The SC also dismissed TNPCB's plea challenging Madras HC's observation against it over inaction in the case.

Previously, the Supreme Court had suggested setting up an expert committee to inspect the Sterlite Copper plant to reopen it with stringent conditions in place.

The proposal, however, was opposed by the Tamil Nadu government citing repeated violations by the Vedanta Group. The state government said that Vedanta claims had not only recovered the capital cost of ₹3,700 crore invested in the plant but earned several times through its operation over the years.

The Sterlite Copper plant in Thoothukudi had been at the centre of citizen protest since 1999 over alleged contamination of soil, water, and air.

The plant was shut down permanently in 2018 following a series of violent protests that killed 13 people. Before its permanent shutdown, the plant contributed to nearly 40% of India’s copper demand.

Shares of Vedanta Ltd closed ₹268.7 apiece, up 2.19%, on NSE.