SC suggests panel to explore restart of Vedanta's Tamil Nadu copper smelter plant

On February 14, the Supreme Court made an oral observation suggesting that it would form a panel to examine the viability of reopening Vedanta's closed Sterlite copper smelting plant in Tuticorin, Tamil Nadu.

The Chief Justice of India DY Chandrachud-led bench observed that the panel will comprise experts on the environment and a representative from an Indian Institute of Technology (IIT), which has a department on environmental studies. However, no order was passed by the apex court on the constitution of the panel.

The lawyer representing the Tamil Nadu government, however, objected to SC's suggestion and noted that a panel of this nature was constituted in the past and they had filed a report on this issue.

The court is yet to decide on whether a panel is to be constituted as senior advocate Shyam Divan, representing Vedanta, is making arguments in the case at present. 

In 2018, the Tamil Nadu government ordered the closure of Sterlite Copper after violent protests against the plant resulted in 13 deaths due to police firing. The government had cited violation of environmental norms as a reason for the closure.

The plant, at that time, was producing over 400,000 tonnes of metal ores annually and accounted for 40% of India's copper output. It also provided employment to 5,000 people directly and 25,000 indirectly.

Vedanta, the parent company of Sterlite Copper, challenged the government's decision and the National Green Tribunal (NGT) allowed the plant to reopen finding the closure to be disproportionate. However, the Supreme Court overturned this decision and directed Vedanta to approach the Madras High Court for any interim relief.

Neither the Madras High Court nor the Supreme Court allowed the plant to reopen. Vedanta has filed a plea seeking periodic access to the plant to carry out essential maintenance work. The company is urgently seeking a hearing, citing the steep deterioration of the plant and its structures.

In April 2023, the Supreme Court permitted Vedanta to carry out the maintenance work at the closed plant. The decision was made based on the report of a high-power Committee (HPC) formed by the Government of Tamil Nadu to inspect the structural and civil safety of the plant.