The bench, comprising chief justice MS Liberhan and justice E Padmanabhan, passed the order after the Nagpur-based National Environmental Engineering Research Institute (Neeri) submitted its report on the plant's functioning.

"It will not be in public interest to permit the plant to function further,'' the bench said, while passing interim orders on a writ petition filed by MDMK general secretary Vaiko and others seeking directions to the union and state governments to prevent the plant from functioning owing to a series of accidents, including one last week.

Adjourning hearing to December 1, the bench said it was open to the Sterlite management to file an appropriate affidavit or undertaking regarding the Neeri report. Meanwhile, Sterlite senior vice-president, commercial, Hemant Jalan has said the plant would be closed down in stages inaccordance with the court order. It will be shut down completely by midnight.

He said the company would react to the Neeri report after considering its details. The court took note of the report that indicted both the central and state governments for giving various clearances and consent to the Sterlite plant in contravention of the statutory requirements. Neeri has recommended that the court ought to close the plant till all the elements of environment and disaster management plans, arising out of an objective, scientific and comprehensive environment impact assessment (EIA) study, was implemented by Sterlite.

The report said clearances were given by considering an inadequately prepared EIA report based on just one month's data.

The plant was established within 25 km of an ecologically fragile area "by relaxing green-belt requirements without adequate or acceptable justification," it said. It recommended that the state pollution control board conduct a study of the area, which harboured severalindustries and other trade related to Sterlite industries. It wanted a comprehensive EIA encompassing all operations.

An analysis of waste water samples indicated that the treatment plant was operating inefficiently, as it was not able to conform to the standards stipulated by the pollution board for arsenic, selenium and lead in treated effluents as also in the effluents stored in ponds.

The Neeri team had completed on November 1 their study on the environmental aspects of the Sterlite copper plant. This followed the order of the green bench of the Chennai high court on September 18. The seven-member team had completed their study on the air and water pollution aspects on October 29.

It is reported that the Sterlite management feels that the court order is not based on accidents, but on the Neeri report which has blamed the company for inadequate environmental and safety measures. Sterlite makes one lakh tonnes of copper for internal consumption and 3.25 lakh tonnes of sulphuric acid as a by-product inits Tuticorin plant.

The copper plant had been the centre of controversy even before its inception. It had come to Tamil Nadu having been rejected by the people of Ratnagiri, where it was originally proposed to be set up. The fisherfolk and others were against it as it posed environmental hazards, including air and water pollution. Environmentalists in Tuticorin have been accusing the plant of releasing noxious gases in the night. Vaiko himself had charged the plant with several gas leaks even before the Ramesh Flowers incident.

Environmental activists in Chennai termed the green bench order as the victory of the people and their right to livelihood over the powers of national and international industrial corporations.

Drag on revenues

Sterlite is one of the lowest cost producers of copper globally. Its copper smelter was operational for three months in the previous financial year, contributing Rs 205 crore or 15 per cent to the total revenue. The plant shutdown will cause a huge loss.Moreover, the company was slated to expand its smelter capacity to 1.5 lakh tpa from 1 lakh tpa. The smelter had actually attained 89 per cent capacity utilisation in October, 1998. The stock market is expected to react negatively to the current developments.