By PR Kovilan Poongkuntran
For nearly a decade, the industrial narrative of Thoothukudi has been defined by a bitter stalemate between economic ambition and environmental anxiety. The closure of the Sterlite Copper plant in 2018 marked a watershed moment in Indian environmental jurisprudence. The 2018 closure affirmed the non-negotiable right to a clean environment, but the Madras High Court’s 2025 shift replaces the “industry vs environment” conflict with a framework that integrates economic necessity with green standards.
Since the closure of Vedanta’s Sterlite Copper smelter in Tuticorin in May 2018, India’s refined copper trade balance has shifted significantly. Prior to the closure, India was a net exporter of refined copper for nearly two decades; the Tuticorin smelter accounted for about 40% of the country’s copper smelting capacity. Following the shutdown, domestic refined copper production dropped sharply and India became a net importer of copper in FY19.
By FY24, official data showed that India recorded net imports of refined copper cathodes of around 0.335 million tonnes, reflecting continued dependence on foreign supply to meet demand. India’s copper (HS code 74) trade deficit rose from about $0.76 billion in FY18 to approximately $6 billion by FY23, according to the Ministry of Mines’ Copper Vision Document 2025.
Today, domestic production satisfies a meagre fraction of national requirements, leaving our industrial backbone critically exposed to the whims of global supply chains. Copper has increasingly assumed a strategic role in the global economy and is widely characterised as “red gold” because of its indispensable function in the modern infrastructure. It is a critical component in renewable energy systems, electric vehicles (EVs), power grids, and electronics, sectors that underpin decarbonisation and modern technology. Globally, refined copper imports reached about $162.6 billion in 2023, reflecting copper’s central role in energy, industrial, and digital infrastructure.
The strategic advantage for Tamil Nadu is particularly acute as we enter the most copper-intensive era in history. The state has already positioned itself as the “EV capital of India”. Data from the International Energy Agency (IEA) and recent industrial reports show that a single battery electric vehicle (BEV) requires roughly 83 kg of copper, nearly four times the 23 kg found in a traditional internal combustion engine. Simultaneously, India’s 500 GW renewable energy target will necessitate millions of tonnes for wind and solar infrastructure. Tamil Nadu provides its home-grown industries with a massive logistics and cost advantage, solidifying its position as the premier destination for next-generation global investment.
By creating a structured framework for this assessment, the court’s decision to involve a multi-disciplinary committee ensures that India’s progress towards a “Viksit Bharat” is built on industries where economic vitality is rigorously balanced with objective, expert-vetted ecological standards.
By embracing a modern, strictly regulated copper facility, Tamil Nadu can transition from past closures to a future that proves industrial growth and environmental protection can coexist.
(The writer is an advocate in the Supreme Court)
Disclaimer: The views expressed are the author’s own and do not reflect the official policy or position of Financial Express.