Anil Agarwal-promoted Sterlite Industries shares tanked over 8% in the early trade on the Bombay Stock Exchange on Wednesday after Madras High Court ordered to close its copper smelter plant in Tuticorin on environmental grounds.

Experts say, this move will impact the company’s profit immediately and Sterlite may witness its standalone bottom line taking a hit of about 10-13% in the third quarter. ?In FY2010, the Tuticorin smelter contributed about 12% to Sterlite?s Ebidta and 15% to its PAT. This contribution will fall going forward,? said a Mumbai-based analyst, requesting anonymity.

This is the second such stricture passed in India against the London-listed Vedanta Resources Plc after the Indian government last month refused to give environmental clearance to its highly controversial $1.7 billion bauxite mining project in Orissa for violating the country?s environment laws.

Sterlite Industries shares on Wednesday closed at Rs 161.50 down by 8.50% from the previous days close on the BSE.

Meanwhile, the company in its statement issued late evening said it deploys ecologically advanced technology and is awaiting full text of the order to decide on future course.

?The Tuticorin Smelter has been operating for more than 12 years and has been in compliance with necessary rules and regulations. The company is one of the largest in Tamil Nadu, employing around 3,000 people and provides indirect employment to a large number of people. It contributes about Rs 1,600 crore to the exchequer annually,? Sterlite said.

The non-ferrous major had plans to double the Tuticorin smelter capacity to 8,00,000 tonnes by middle of 2011. Sterlite had earlier announced that it plan to invest Rs 2,300 crore to set up 4,00,000 tonnes per year copper smelter plant as part of expanding capacity at Tuticorin. The project which would be funded through a mix of debt and internal accruals includes the cost of the smelter, refinery, the captive power facility and other associated facilities such as sulphuric acid plant and phosphoric acid plant.

Sterlite’s consolidated cash, cash equivalents and liquid investments as on June 30, 2010 stood Rs 24,874 crore. However, the power and zinc business of Sterlite which includes Sterlite Energy, HZL and Balco are expected to contribute more to the company’s revenues going ahead, say experts.