Sterlite follows SC suggestion, moves Madras HC for reopening plant

CHENNAI: Vedanta’s Sterlite Copper has approached the Madras high court seeking to reopen its industrial unit in Tuticorin, which was closed in view of an order passed by Tamil Nadu Pollution Board (TNPCB) dated May 23, 2018.

The company moved the plea in the high court on Wednesday challenging the TNPCB’s order, as suggested by the Supreme Court.

The primary contention of Sterlite was that TNPCB had ‘miserably failed in the performance of its statutory functions and has only, blindly and without any independent application of mind, passed orders in a knee jerk manner in response to the political situation brewing in the area and according to the whims of the Tamil Nadu government.’

TNPCB’s order refusing renewal of consent as well as closure is wholly illegal, unconstitutional, ultra vires the Air and Water Acts and otherwise unsustainable, the company said in the plea. It was, at any event, liable to be quashed on the grounds of violations of principles of natural justice apart from being vitiated by reliance on extraneous considerations, it added. “The order has been made as per TNPCB’s convenience for stopping the operation of Sterlite with complete non-application of mind…,” the company said in its affidavit, filed in support of its claim.

Pointing out that the closure order was issued on the ground that the unit was carrying out activities to resume its production, the petitioner said, when the order was passed, a furnace-induced draft fan was completely dismantled. Further, the ducts of its smelter and sulphuric acid plant brought down for maintenance activities during the shutdown were still on the ground and not connected, making production not feasible, the affidavit said.

Sterlite further submitted that the closure of an industry is a measure of last resort in the absence of any other alternative. TNPCB being a statutory public authority, was expected to consider all balancing factors before coming to the conclusion of passing such a drastic order, it added. It further alleged that the order was passed pursuant to a media publication by one of the NGO’s operating against the company, without any deliberation or discussions within departments concerned, and without even issuing notice to the company, Sterlite said.

This apart, the company claimed that it has 36% share in the total domestic market for copper besides exporting copper worth Rs 9,000 crore annually. Hence in the event of closure, there will be a loss of foreign exchange earnings of US $1.5 billion a year, it said. The plea is likely to be taken up for hearing on Thursday.