Sterlite case:

Debate between industry and

environment

NAME- CHANDRIMA DAS

ROLL NO – 18MB4003
MBA, 3RD SEMESTER
• Sterlite (SIIL), a unit of London-listed resources conglomerate Vedanta Resources Private A non-ferrous metal
producer in Tuticorin since 1996(17 years). Sterlite ranks 2nd in India and 14th in the world for Phosphoric acid AND
3rd in Sulphuricacid production in India.

• In September 28,2010 The Madras High Court ordered closing down of Sterlite Industries while the National Trust for
Clean Environment‟ filed the first written petition against the granting of environmental clearance to Sterlite Industries
in 1996.

• March 23 ,2013- Villagers living close to the factory complained of breathing difficulty, vomiting and eye irritation,
giving rise to suspicion of a sulphur dioxide leak from the copper smelting plant .

• March24,Tuticorin district collector said preliminary investigation by a team of officials led by the Revenue Department
Officials collected effluent emission data from All factories in the vicinity, including SCIL, SPIC and government and
private thermal power units, suggested that the sulphur dioxide unit at Sterlite Copper India could be the source of the
gasleak. But only further investigation could confirm whether the emission was above permissible limits.

• Revenue department gave an order to the company seeking explanation for the incident within five days.
PRESENT SCENARIO

The Tamil Nadu government had in May issued an order, directing the state Pollution Control Board to seal the
Vedanta group's copper plant and close it down "permanently" following violent protests during which 13 people
were killed in police firing.

• Various stakeholders affected by the closure of Vedanta's copper smelter plant in Tuticorin, Tamil Nadu,
Thursday(OCT 25TH 2018) sought Prime Minister Narendra Modi's intervention in restarting operations.

• A group of 14 representing vendors, associations, farmers and transporters on Thursday submitted a letter to the
Prime Minister, urging him that the Sterlite Copper smelter be granted permission to resume operations.
stakeholders – individuals from villages living around the plant, contract employees, CSR beneficiaries, farmers,
truckers, customers, vendors and downstream industries – also met Minister of State for Mines Haribhai Parthibhai
Chaudhary and Union Environment Minister Harsh Vardhan to share their grievances and requested them to
intervene in the matter.

• According to them they have been living around the plant since birth and have never faced a medical issue. Health
was never and is not an issue. Their issue is with loss of jobs and unemployment that this closure has led to.

(Source: https://www.businesstoday.in/pti-feed/vedanta-copper-smelter-closure-stakeholders-seek-pms-
intervention-in-restarting-plant/story/286539.html)
WHAT VEDANTA DID TO MAINTAIN SUPPORT OF IS SHARE HOLDERS?

• Vedanta has said that it has invested $74.5 million to mitigate environmental issues at its copper smelter plant in
Tuticorin, Tamil Nadu, currently under closure since March 2018.

• The company has said that it is continuously engaging with all stakeholders, including the state government and
courts, for a smooth restart of its copper plant operations in Tuticorin.

• Since March 2018, the plant has been shut by order of the Tamil Nadu State government. Vedanta further informed
the shareholders that the company has challenged the closure order through an appeal before the National Green
Tribunal (NGT).

• Reaffirming the commitment to the local people of Thoothukudi, the company has announced a Rs 100-crore
investment in social infrastructure plans. The vision includes a clean and green community with the planting of one
million trees, high-quality education delivered through a fine and well-equipped school, a world-class hospital, a
desalination plant and youth development schemes. The company remains continuously engaged with the local
community and would like to prosper with them, it added.
ROLE OF STAKE HOLDERS

Industry and environment go hand in hand. There should be stringent and clear rules. These rules must be followed
rigorously. For the overall development of a particular region, industry plays a crucial role. Therefore, it is important to
ensure that industry is allowed to operate uninterrupted within the parameters that have been set. Any concern
raised by the stakeholders needs to be backed by scientific evidence and facts, and not hearsay.” SO apart from
emotions and fear of losing jobs stakeholders must be aware of the impact an industry is having on the environment
and must work effectively for developing an environment friendly company and taking necessary steps to stop a
company from causing pollution. Here the stake holder also includes the community people who were being affected
by the Sterlite emission and their protest against the company has put forward the issue to the government who then
gave them a time period to give proper investigation of the case which finally led to the closure of the plant.But the
employees were completely in opposite pole as they sought intervention of the central government as they felt that
their jobs are much more important that the health so there existed a difference of roles opinions about the Sterlite.