'Closure Of Vedanta's Copper Unit Results In Rs 14,749 Cr Loss To Economy'

The shutting down of Vedanta's copper smelter plant at Thoothukudi, Tamil Nadu since May 2018 has resulted in a consolidated loss of around Rs 14,749 crore to the economy, according to a report.

The report comes a month after Vedanta putting on sale its copper unit which was shut four years ago after 13 people were killed in a police firing on protestors agitating against alleged pollution by the unit.

According to a synthesis report by CUTS International, "Through the data collected and analysed for the purpose of this report, the consolidated loss to the economy owing to closure of the copper plant on all stakeholders is estimated to be around Rs 14,749 crore since its closure in May 2018."

The cumulative loss for the entire period of plant closure is roughly around 0.72 per cent of the State Gross Domestic Product (SGDP) of Tamil Nadu.

The report further said that closure of plant has amounted to a loss of around Rs 4,777 crore to the company.

The government is also losing considerable revenue in the form of taxes and duties, said the report which was carried out with the financial support of NITI Aayog and conducted by Consumer Unity & Trust Society, Jaipur.

These grave economic impacts on the varied stakeholders offers a pressing need to find better alternate remedies to balance matters concerning the development-environment conflict in the instant matter, it said.

The Tamil Nadu government had ordered the permanent closure of the unit in the port city of Thoothukudi in May 2018 following violent protests.

The company had in past repeatedly denied allegations of its plant polluting the local environment and had moved the Supreme Court for the opening of the unit.

But the apex court had so far not given a clear go-ahead.

A company spokesperson had said the Tuticorin plant is a national asset that has been catering to 40 per cent of the domestic demand for copper and has played an integral role in the country's self-sufficiency in copper.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor