Four years after the Tamil Nadu government shut Sterlite Copper on charges of pollution following several legal battles, a unit of the Vedanta Group put out an advertisement last week announcing that the Thoothukudi smelter was up for sale. While environmentalists and those who have been against the operation of the plant called this move a “marketing gimmick” and “strategy to get national attention”, industries and micro, small and medium enterprises that rely on copper (a key raw material) are worried that this would further impact businesses in the State.
When operational, Sterlite Copper produced approximately 40% of India’s demand for copper and contributed around ₹2,500 crore to the exchequer. The Thoothukudi plant has an installed capacity of 4,00,000 metric tonnes per annum (MTPA) at the integrated copper smelter and refinery, with another 4,00,000 MTPA under expansion. Apart from copper, Sterlite was the only domestic supplier of phosphoric acid with a capacity of 220,000 metric tonnes. The acid is a key raw material for fertilizers. This particular plant was also the largest supplier of sulphuric acid in Tamil Nadu, which is used in the detergent and chemical industries. After the closure of this plant on May 28, 2018, the prices of all these raw materials shot up.
Data provided by Hitesh Avachat, Associate Director, Care Ratings, show that India is importing copper at a historically higher price, close to around $9,600 per tonne, 50% higher than the average prices when India was a net exporter (around $6,500 per tonne).
