Sterlite closure dries up copper, hits EB

CHENNAI: It is just two weeks since the state government sealed the Sterlite copper smelter in Tuticorin. But state power utility Tangedco is already feeling the heat as suppliers are facing a shortage of copper, and may delay the supply of new transformers to the distribution company, power minister P Thangamani told the assembly on Friday.

“There is no power shortage in the state. But sometimes due to high demand the power trips. In such places, we immediately change the transformers. But suppliers to Tangedco are stating that transformer supply will be delayed due to copper shortage because of Sterlite factory shutdown,” said Thangamani in his reply to Tiruvottiyur DMK MLA KPP Samy. While the Sterlite plant was sealed about two weeks ago, it was under shutdown for annual maintenance since March 27 this year.

Tangedco sources told TOI that the suppliers of transformers and conductors have sought more time as they will now have to import copper. “Tangedco does not purchase copper directly from Sterlite but manufacturers of cables, transformers and other electrical equipment who are our suppliers or contractors have expressed some difficulty in sourcing copper after Sterlite closure,” Tangedco chairman and energy principal secretary Vikram Kapur told TOI. This, the chairman said, may lead to some delay in executing purchase order.

‘Most suppliers to Tangedco bought copper from Sterlite’

Tangedco has undertaken several projects to set up new sub-stations, lay underground cable and to replace overhead lines and also to change worn-out transformers, as also replacing a transformer with a higher capacity one, based on the power load.

A distribution transformer needs anywhere between 150kg to 500kg of copper and a transmission transformer found in sub-stations may require more than 1 tonne of copper. “Most of the suppliers to Tangedco were purchasing copper from Sterlite as it is situated within Tamil Nadu and transporting it to the city was easy. Also, the plant remained the major source of supply of copper in the country,” said a Tangedco supplier not willing to be named.

The alternative for Tangedco suppliers is to purchase copper from Hindustan Copper Ltd or import the commodity. “In both the alternatives, we have problems. We doubt whether Hindustan Copper can meet the entire demand from all manufacturers of power equipment. Import of copper will increase our cost, as the rupee value against the US dollar is going down, and also takes time to source” said the supplier.