Sterlite Industries India Ltd (SIIL) will be doubling capacity at its copper-smelting plant here, with an investment of around Rs 2,500 crore. The company is hoping to complete the expansion by 2013.
It may be noted the Madras High Court had earlier ordered the company to shut the unit because of pollution. The order came in response to a petition filed by a local political party, MDMK, the CPI and an NGO.
Subsequently, the Supreme Court stayed the order in October 2010 and allowed the company to restart production. Meanwhile, decision on the public interest litigation against the company’s expansion plan, is pending at the Madras High Court.
The state Pollution Control Board is delaying clearance for the expansion. Ramesh Nair, chief operating officer, SIIL, said, “We should have completed the expansion in 2012. Now, it will be delayed for one more year and is expected to finish by the second half of 2013. Priority is to get Supreme Court clearance.”
He added, “Expansion proposal needs clearance from Tamil Nadu Pollution Control Board.” On the recent environment issues, Nair said, “The matter is in the court and we do not want to comment on the issue. All we can say is Rs 500 crore has been invested in the plant to address environmental issues.”
The Tuticorin facility, ninth largest smelter in the world and largest integrated copper road producer in Asia, currently has a capacity of 400,000 tonnes per annum. The company was planning to double it, with an investment of Rs 2,500 crore. The company was also proposing a water desalination plant with an investment of around Rs 90 crore.
Last year, the Tuticorin unit generated revenue of Rs 13,700 crore and this year is likely to close with a turnover of around Rs 15,000 crore. Export contributes around 40 per cent of the total business.
The plant contributes around 3.5 per cent of the total gross state domestic product of Tamil Nadu (GSDP of Tamil Nadu) of Rs 4.36 lakh crore. The yearly contribution by the plant is around Rs 1,600 crore and Rs 750 crore towards customs duty. The unit has a 44 per cent market share in the primary copper market, said Nair.
