In the mid-1990s Sterlite Industries (now Vedanta) set up the largest copper melting facility at Thoothukudi. This unit heralded the flow of mega investments into Tamil Nadu. Vedanta truly turned the face of Thoothukudi as a highly sophisticated production centre of high value industrial product.
Thoothukudi plant is just a small portion of the sprawling Vedanta empire. But sadly, it is vital to the region of Tamil Nadu and to the larger national interest.
Sterlite accounted for 40 per cent of the country’s copper demand. This is now met by expensive imports, benefiting China and other countries. Copper price has shot up from around Rs 350 to Rs 850 per kg resulting in corresponding increase in the price of appliances and a variety of copper-based products.
The states and the Centre are bending backwards to attract foreign investments through PLI, assured power, liberal land allocation, ease of doing business… However, the callous indifference to keep idle an investment of Rs 3000 plus crore impacting the livelihoods of around 30,000 and denying further larger investments!
The non-functioning of such a costly capacity for over four years has resulted in sizeable imports, during the time when Prime Minister is commending self-reliance of the country.
IE emphasised the need for communication efforts of Vedanta to apprise the community around the plant, the policymakers and the media on the precious contributions of Sterlite and the loss incurred in keeping the operations closed.
On one hand TN Chief Minister M K Stalin is talking of reaching the goal of a trillion-dollar economy inviting foreign investors to set up shop in Tamil Nadu; on the other, he is indifferent towards re-opening of the profit-making Sterlite plant.
It is unfortunate that we come across news of Vedanta planning to sell the Sterlite plant.
