Sterlite Copper Plant located in Thoothukudi is going to be sold for Rs.4,500 CR, said a recent report, refusing which Vedanta issued a statement to media. Vedanta led by billionaire Anil Agarwal, has refuted recent reports claiming that the company is planning to sell its Sterlite Copper Plant in Thoothukudi, Tamil Nadu for Rs 4,500 crore. Vedanta dismissed these reports as “wrong, baseless, and incorrect,” emphasizing that Sterlite Copper is a national asset and has contributed significantly to India’s copper production, accounting for 40 percent of the country’s copper output.

The company’s response came in the wake of a report suggesting that Vedanta Ltd was exploring options to sell the copper plant at a valuation of Rs 4,500 crore as it seeks to revive operations in Tamil Nadu. Vedanta had previously invited expressions of interest (EoIs) for the unit in June 2022, but due to the plant’s closure for the past five years, it did not receive a positive response. According to an unnamed banking source cited by Business Standard, the company has restarted the process, with bankers now reaching out to potential bidders. However, the accuracy of this information has not been independently verified by Moneycontrol.

On June 12, Vedanta invited EoIs to “restart activities” at the plant following the direction of the Supreme Court. The closure of the facility was ordered by the Tamil Nadu Pollution Control Board (TNPCB). In a regulatory filing, Vedanta stated that the country’s growing dependence on copper imports has had a detrimental impact on downstream and ancillary industries, leading to increased demand for the revival of Vedanta-Sterlite Copper’s operations.

Despite the ongoing developments, Vedanta’s shares closed 0.21 percent lower on June 22, trading at Rs 280.65 apiece on the Bombay Stock Exchange (BSE).

Vedanta’s stance reflects its commitment to Sterlite Copper as a valuable national asset and highlights the potential for reinvigorating the copper plant’s operations. With the process of seeking potential bidders underway, the future of Sterlite Copper remains uncertain. However, Vedanta’s emphasis on the importance of domestic copper production for India’s economy suggests that the company is dedicated to finding a solution that would benefit both the industry and the nation.

Impact Of Sterlite Closure :

The closure of the Sterlite Copper Thoothukudi plant in Tamil Nadu has had far-reaching consequences on the local population, particularly in terms of employment. A recent study has revealed that the shutdown has resulted in a staggering net loss of nearly 30,000 jobs, both directly and indirectly. Various media reports have highlighted the severity of the situation, emphasizing that those who lost their jobs are now facing a significant reduction in their monthly incomes, with some experiencing a decline of at least 50 percent. Moreover, the study points out that the closure has left many individuals unemployed, further exacerbating the economic impact on the affected region.

The economic ramifications of the plant closure are now becoming evident. Initial estimates suggest that the total loss to the Indian economy due to the shutdown amounts to approximately Rs14,749 crore, equivalent to $2 billion. This substantial financial setback underscores the urgency of the situation and the need for prompt decision-making.

The clash between economic development and environmental protection is an age-old dilemma faced by societies worldwide. Even in the case of the Carmichael coal mines in Australia, Adani encountered significant opposition from environmental groups. However, it is crucial for state and national bodies to intervene effectively and address these challenges, as exemplified by the state of Queensland in Australia. It is disheartening to witness the Indian economy suffer such a considerable loss purely due to the lack of swift decision-making.

The closure of the Sterlite Copper Thoothukudi plant has undoubtedly had a profound impact on the local economy. Beyond the loss of jobs, the consequences ripple through the community, affecting individuals and families who depended on the plant for their livelihoods. The government and relevant authorities must recognize the urgency of the situation and take proactive measures to mitigate the negative effects of the closure. This includes exploring avenues for alternative employment opportunities and providing support to those affected by the shutdown.