Vedanta’s copper facility closing costs show Rs 14,749 crore loss to economy

According to research, closure of Vedanta’s copper smelting facility in Tami Nadu’s Thoothukudi since May 2018 has cost the economy a total of about Rs 14,749 crore.

The news comes a month after Vedanta put its copper business up for sale. The unit was shut down four years prior after 13 people were murdered when police opened fire on protesters who were demonstrating against what they claimed was pollution coming from the unit.

However, economy has suffered a consolidated loss due to closure of copper plant on all stakeholders, according to a synthesis report by CUTS International, which states that “through the data collected and analyzed for purpose of this report, loss to economy is estimated to be around Rs 14,749 crore since its closure in May 2018.”

The total loss from shutdown of the facility amounts to around 0.72 percent of Tamil Nadu’s State Gross Domestic Product (SGDP). The total loss from shutdown of facility amounts to around 0.72 percent of Tamil Nadu’s State Gross Domestic Product (SGDP).

According to the report, corporation has lost around Rs 4,777 crore as a result of facility closure.

The paper, produced by Consumer Unity & Trust Society, Jaipur, with funding from NITI Aayog, claimed that government is also losing a sizeable amount of money in form of taxes and levies.

Report states that there is an urgent need to identify better substitute treatments to resolve the development-environment conflict in current situation given the serious economic effects on the many stakeholders.

Following violent demonstrations, Tamil Nadu government ordered facility in the port city of Thoothukudi to be permanently closed in May 2018. The business had previously vehemently refuted claims that its facility polluted the area, and it had petitioned the Supreme Court for permission to open the unit.

However, top court has not yet issued a definite approval. According to a corporate spokeswoman, Tuticorin facility is a national asset that has met 40% of local copper demand and contributed significantly to the nation’s copper self-sufficiency.