By R. Chandra Mouli

A quote often attributed to Gautama Buddha: “Three things cannot be long hidden: the sun, the moon, and the truth.” 

Writer W. Somerset Maugham said, “The fact that a great many people believe something is no guarantee of its truth.” 

Oscar Wilde, poet and playwright, had this view: “The truth is rarely pure and never simple.”

Such is the intriguing situation Thoothukudi faces at present. What is the truth, and what are the falsities in the case of Sterlite Copper, are questions raised by activists, authorities and citizens over the last decade. The questions came up again when protests erupted in Thoothukudi and Namakkal one month ago. 

The difference this time – the demand was to reopen the smelter, and not to keep gates shut. On Dec. 20, 2024, around 2,000 residents, many of whom belong to Indian Trade Union Congress and Thoothukudi Contractors Association, gathered in the heart of Thoothukudi – for a peaceful protest. 

The slogans were different this time.  Their demands: Revive the economy of the district; restore livelihoods; and reactivate ancillary industries. The key to achieving the above, according to the above industry bodies, would be the reopening of Sterlite Copper. 

An isolated incident? Not really. On Jan. 6, 2025, members of two trade bodies whose lives were impacted by the closure took to the streets for a similar purpose at nearby Namakkal, a location home to lorry operators and lorry fabricators who custom build for diverse requirements.

The Namakkal Lorry Owners’ Association and Namakkal Trailer Owners’ Association came out in full strength with trucks and trailers to demand the resumption of operations at Sterlite Copper in Thoothukudi. 

Office bearers of the associations said that due to the closure of the smelter, operation of over 1,000 lorries to the factory was affected, more than 600 people in the lorry transport lost their jobs, and some lorry owners were now working as drivers. Overall, around 6,500 lorries were deployed for the smelter operations. Lorry owners had lost several crores due to the closure, while mechanics, repair workshops and support services such as tea shops have suffered loss of income, they said.

On Dec. 12, fishermen and villagers from Thoothukudi submitted a petition to the District Collector, urging the reopening of the Sterlite Copper plant. The petition was submitted on behalf of various fishermen welfare associations including Thoothukudi Country Boat Shrimp Fishermen Welfare Association and Thenpagam Fishermen Association.

The petitioners said that the Sterlite plant operated in Thoothukudi for over 20 years and it benefited the coastal villages and people from various regions through a range of welfare schemes. The plant had also provided both direct and indirect job opportunities to thousands of people significantly improving their livelihoods.

The petition highlighted that unemployment and uncertainties about the future of their children are a major concern. They requested the government to form an expert committee to assess the plant and address the issues found, and to reopen the plant. Villagers from Kumareddiyapuram and Meelavittan also submitted a similar petition.

In January and February advertisements were published in the media, seeking reopening of Sterlite Copper, and stating that the closure had resulted in 5 times increase in the price of fertilisers, loss of livelihoods, 40% drop in income level, and loss of direct and indirect employment opportunities in Thoothukudi and nearby districts.  The advertisements were released by Tamilnadu Hindu Traders Association, Thamiraparani Pasana Vivasayigal Munnetra Sangam, Aadi Dravidar Nala Sangam, Thoothukudi Contractors Association and Tamizhaga Makkal Munnetra Kazhagam. 

To understand why the crowds gathered in Thoothukudi and Namakkal, and why associations opted to communicate in the media, one must understand why the smelter was shut, and why many want it reopened. Time to look back at history, smelter technology and geopolitics, each of which will unravel the impact of shutting down a facility that contributed to almost one lac jobs until the year 2018.

The Origins of Sterlite Copper

Sterlite Copper’s smelter at Thoothukudi commenced operations in 1997. The parent company of Sterlite Copper is Vedanta Resources, a global metals and mining major with an annual revenue of USD 18.1 billion, with presence across Asia, Europe and Africa, and a global workforce of over 76,000 professionals. According to the Management, when the smelter and copper refinery were first envisaged in the mid-1990s at Thoothukudi, state-of-the-art technology was sourced and installed.

  • ISAMELT process from Glencore Australia, deployed at the smelter, ensures highest efficiency and stringent environmental norms. The equipment for sulphuric acid and phosphoric acid plant, rod plant, oxygen plant, refinery and hygiene ventilation were sourced from UK, USA, Canada, Australia, Italy and Brazil.
  • In 2017, a year before the closure, the British Safety Council conferred on Sterlite Copper the Sword of Honour Award, for highest standards of excellence in health and safety practices.
  • Studies by various bodies and forums have shown there is no evidence to link the plant’s operations to an increase in incidence of cancer, decrease in rainfall, or depletion in groundwater in Thoothukudi.
  • Of the 167 copper smelters around the world, Sterlite Copper was ranked among the top 10 in terms of energy efficiency, copper recovery and effluent treatment, as per a report by Brooke Hunt, which benchmarks performance of global copper smelters.

An example of a safeguard in place at Sterlite Copper was the monitoring of air quality 24 X 7. Emission control systems were linked online to the Tamil Nadu Pollution Control Board and any escalation in the permitted emission level can be observed in real time by the authorities. 

In the 20 years that Sterlite Copper was in operation, there was no significant instance of leakage of any type of gas or emission discharge higher than the permitted level. 

The Role of Geopolitics

With Sterlite Copper contributing almost 40% of India’s copper requirement at its peak, the Nation was a net exporter of Copper and allied products. We became a net importer within a year of Sterlite Copper being shut down, and the price of Copper doubled. Here are pointers that indicate the geopolitical plan to disrupt our dominance in copper production has succeeded: 

  • In 2023, India imported Copper worth USD 335.14 million from China, according to the United Nations COMTRADE database on international trade.
  • As per International Copper Association India, copper cathode imports increased by 180% in FY 23 due to constraints in domestic refined copper capacity.
  • India Ratings and Research has said that our country would remain a net importer of copper in FY 24 due to low domestic production, and the shortage may create problems for its target to achieve green energy targets.

Grant of Social License

To restart the Sterlite Copper facility at Thoothukudi, three affirmations are essential: 

First, the Supreme Court may consider the grounds in the National interest, when the Respondent, Sterlite Copper, submits a Curative Petition – with reference to the initial case filed by the Appellant – Tamilnadu Pollution Control Board. 

If it so desires, the Supreme Court may invoke Article 142 of the Indian Constitution and pass a decree to render complete and substantial justice in the matter of Sterlite Copper. 

It must be noted the apex court in February this year upheld the decision of the Madras High Court to shut down the plant and followed it with dismissal of Sterlite Copper’s Review Petition in October (The upcoming Curative Petition is the final legal resort).

Second, the Govt. of Tamil Nadu, in the interest of the community, State and Nation, could look at viable ways of restarting the plant by setting up a committee of technical experts to review safety practices. The committee may co-opt social activists and environmentalists to understand their concerns.

Third, and perhaps the most important, is the grant of a social license. This is not confirmation on a policy document or a certificate, but a consent to operate, expressed by the public. 

In short, the first and final approval must come from the people of Thoothukudi. It is their livelihood that has been impacted by the closure. Business, industry and commerce in the region have been affected. A unanimous change in perception, accompanied by new thinking, can usher in winds of change and bring a new sheen to Pearl City. 

(The writer is a former journalist and advertising professional now serving as a communications consultant. Views expressed are his own) 

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