Vedanta's request to renew copper smelter operations in India rejected (updated)

Precision Wires India

10/04/2018 12:33

(Adds details)
    BENGALURU, April 10 (Reuters) - Vedanta Resources Plc
 VED.L  said on Tuesday its application for renewal of consent
to operate its copper smelting plant, one of India's biggest, in
the South Indian town of Thootukudi was rejected by the state
pollution regulator. 
    The rejection comes amid almost daily protests against a
proposed expansion of the smelter by the people of Thootukudi,
who have thronged the streets and shut shops demanding a closure
of the plant. 
    Vedanta says the protests are based on "false allegations"
and the company has been providing "regular information through
various media on the truth". The company plans to double
capacity at the smelter to 800,000 tonnes per year.     
    The conglomerate - controlled by billionaire Anil Agarwal -
said the application was rejected for want of more
clarifications and it was evaluating further course of action.
    The company did not immediately respond to a request from
Reuters seeking further comment. The Tamil Nadu Pollution
Control Board was not immediately available for a comment. 
    The smelter, run by Vedanta's Sterlite Copper unit, is
controlled by Vedanta Ltd  VDAN.NS , a majority-owned subsidiary
of London-listed Vedanta Resources.
    The unit is currently closed as part of a 15-day scheduled
maintenance, which started on March 27, and the company said the
maintenance is now likely to be extended.  urn:newsml:reuters.com:*:nL3N1R93UQ
    Cable makers such as Finolex Cables Ltd  FNXC.NS  and
Precision Wires India Ltd  PRWR.NS  have traditionally bought
copper from the two biggest producers, Vedanta's Sterlite and
Aditya Birla Group's Hindalco Industries Ltd  HALC.NS . 
    India's consumption of copper has been increasing
consistently over the last few years. 
    At current local demand growth of 7-8 percent per year,
India may turn into a net importer of copper by the year ended
March 2020 if no new plant is commissioned, consultancy firm
ICRA Ltd said in a report last week. 
    Locals and environmentalists say Vedanta's smelter is a
major source of pollution and a risk to fisheries.
    The smelter was shut for more than two months in 2013 by an
Indian environmental court after complaints from residents over
emissions, then forcing India to ramp up imports of copper.
    Several cases have been filed against Sterlite since the
plant started in 1996. In a different case, India’s top court in
April fined the company about $18 million for breaking
environmental laws at the smelter. 

 (Reporting by Arathy S Nair in Bengaluru; Writing and
additional reporting by Sudarshan Varadhan in New Delhi; Editing
by Sunil Nair and Alexandra Hudson)
 ((arathys.nair@thomsonreuters.com; within U.K. +44 020 7542
1810, outside U.K. +91 80 6749 3863; Reuters Messaging:
arathys.nair.thomsonreuters.com@reuters.net))