Can new smelter in Gujarat mean no need for another? SC on TN govt submission against reopening Sterlite plant

On February 14, the bench, also comprising Justices J B Pardiwala and Manoj Misra, had cited “national interest” and mooted forming an expert panel to look into environmental concerns for reopening the plant.

On Wednesday Senior advocate C S Vaidyanathan, appearing for the Tamil Nadu government, said “In March, a high-capacity copper smelter plant is commencing operation (by) Adani in Gujarat. Capacity required to meet this country’s requirement and to export is more than enough. So, that public interest is not a matter that needs to trouble My Lords”.

He said the Vedanta group (which owns Sterlite plant) had claimed it was set up at a cost of Rs 3,700 crore as of 2018 and a replacement value of Rs 6,000 crore as of today. “According to them, they say the closure of industry has cost us a loss of Rs 5 crore (profit) per day. Let us take 320 days working. That means a profit of Rs 1,600 crore per year… And they have functioned for 20 years. In 2 years, they have more than made their entire investment. There is no loss to them,” Vaidyanathan said. However, the CJI said, “that’s no ground for closure.”

“Vedanta imports copper concentrate with about 30 per cent copper. Remaining is waste… which would remain in India while the copper is exported. India cannot be treated as a dumping ground for polluting waste while the valuable resource is being exported,” he said.

The CJI said, “Setting up a copper smelter is within the industrial policy. Our country doesn’t bar copper smelters”.

Vaidyanatha said “under section 25 of the Water Act, there is no right to set up a polluting industry.” He added that the plant is a “chronic polluter and persistent defaulter. These are the findings of the HC…” The CJI asked, “Why did you give them permission in the first place?”

The senior counsel said “that was precisely the question the Madras HC considered (while upholding the TNPCB order directing the plant’s closure) and said it should be withdrawn. The National Environmental Engineering Research Institute (NEERI) said (in a 2005 report) that it should be withdrawn. HC therefore ordered closure. But SC said we will permit, subject to certain conditions”.

Senior Advocate Vikas Singh, representing an NGO Manu Neethi Foundation, which is supporting the reopening of the plant referred to the delay in the execution of the Vizhinjam project in Kerala which he said were due to “stage managed protests”. Singh said that the nearest port was Hambantota Port in Sri Lanka, where the Chinese have significant investments, and the locals are incited to oppose any big project which is likely to economically benefit the country. He said that copper is the new oil and very important for the electronics and EV industry.