NEW DELHI: The Supreme Court on Wednesday pressed for a response from a reluctant Tamil Nadu govt to its suggestion for a scrutiny from an expert panel about the viability and a possible opening of Vedanta’s closed copper smelting plant at Tuticorin after ensuring compliance with stringent environment protection conditions.
Tamil Nadu opposed reopening of Vedanta’s plant, which catered to 36% of India’s copper needs and exported 50% of its produce fetching ₹13,500 crore to the exchequer between 2014 and 2018, alleging grave danger to Tuticorin residents and damage to environment.
However, Vedanta agreed to a fresh valuation by a panel of experts while agreeing to comply with the SC-appointed panel’s stringent environmental conditions.
The plant has been lying shut after the death of 12 people in police firing on a group of protesters demanding its closure.
The bench headed by Chief Justice of India D Y Chandrachud and Justices J B Pardiwala and Manoj Misra sought to reconcile the competing considerations on the twin anvils of public health, environment protection and national interest. “There is a genuine state concern as the custodian of health and lives of residents of Tuticorin. We cannot brush it aside as governments irrespective of political party have supported closure of the plant. At the same time, it is a national asset, as described in our 2013 judgment. There is national interest involved in it as there are only a few copper smelting plants in India. We can ask the panel to examine all issues and give us a report within a month. In addition, we can quantify the damages the plant has to pay for past violations,” the bench said and posted the matter for further hearing on Thursday.
Appearing for Vedanta, senior advocate Shyam Divan told the bench that the plant was closed by TN government unilaterally without even a show cause notice, in blatant disregard of principles of natural justice. He made the sensational charge that 2018 protests were encouraged by foreign NGOs after Vedanta made a public disclosure about its plans to expand the existing facilities at Tuticorin to meet the challenges posed by other copper producing countries like China.
He said, “In order to remain competitive and viable, the plant should not only be efficient but have the capacity to expand. The plant, established in 1997 after getting all statutory clearances, including environmental nods, employed nearly 3,000 employees. It was a national asset, as described by the SC itself in its 2013 judgment.”
Appearing for TN, senior advocates C S Vaidyananthan and Gopal Shanakaranarayanan said the state has overwhelming public interest grounds to order shutting down of the plant, which posed serious threat to the lives and health of residents of Tuticorin. Despite Tamil Nadu being a politically polarised state, there is unanimity among political parties over shutting down the copper smelting plant. Vedanta can sell its assets and go somewhere else,” they said.
The CJI-led bench said it was not inclined to allow Vedanta to either refurbish the plant or allow it to function through an interim order. However, it said that it was of the view that the plant’s viability and if viable, its reopening with stringent conditions should be examined afresh by a panel comprising representatives from National Environmental Engineering Research Institute (NEERI), Central Pollution Control Board (CPCB), Tamil Nadu Pollution Control Board and three nationally acclaimed environment experts.
“There is a genuine concern of the state as custodian of the health and lives of residents of Tuticorin. We cannot brush it aside as governments irrespective of political party have supported closure of the plant. At the same time, it is a national asset, as described in our 2013 judgment. There is national interest involved. We can ask the panel to examine all issues and give us a report within a month. In addition, we can quantify the damages the company has to pay for past violations,” the bench said.
Tamil Nadu opposed reopening of Vedanta’s plant, which catered to 36% of India’s copper needs and exported 50% of its produce fetching ₹13,500 crore to the exchequer between 2014 and 2018, alleging grave danger to Tuticorin residents and damage to environment.
However, Vedanta agreed to a fresh valuation by a panel of experts while agreeing to comply with the SC-appointed panel’s stringent environmental conditions.
The plant has been lying shut after the death of 12 people in police firing on a group of protesters demanding its closure.
The bench headed by Chief Justice of India D Y Chandrachud and Justices J B Pardiwala and Manoj Misra sought to reconcile the competing considerations on the twin anvils of public health, environment protection and national interest. “There is a genuine state concern as the custodian of health and lives of residents of Tuticorin. We cannot brush it aside as governments irrespective of political party have supported closure of the plant. At the same time, it is a national asset, as described in our 2013 judgment. There is national interest involved in it as there are only a few copper smelting plants in India. We can ask the panel to examine all issues and give us a report within a month. In addition, we can quantify the damages the plant has to pay for past violations,” the bench said and posted the matter for further hearing on Thursday.
Appearing for Vedanta, senior advocate Shyam Divan told the bench that the plant was closed by TN government unilaterally without even a show cause notice, in blatant disregard of principles of natural justice. He made the sensational charge that 2018 protests were encouraged by foreign NGOs after Vedanta made a public disclosure about its plans to expand the existing facilities at Tuticorin to meet the challenges posed by other copper producing countries like China.
He said, “In order to remain competitive and viable, the plant should not only be efficient but have the capacity to expand. The plant, established in 1997 after getting all statutory clearances, including environmental nods, employed nearly 3,000 employees. It was a national asset, as described by the SC itself in its 2013 judgment.”
Appearing for TN, senior advocates C S Vaidyananthan and Gopal Shanakaranarayanan said the state has overwhelming public interest grounds to order shutting down of the plant, which posed serious threat to the lives and health of residents of Tuticorin. Despite Tamil Nadu being a politically polarised state, there is unanimity among political parties over shutting down the copper smelting plant. Vedanta can sell its assets and go somewhere else,” they said.
The CJI-led bench said it was not inclined to allow Vedanta to either refurbish the plant or allow it to function through an interim order. However, it said that it was of the view that the plant’s viability and if viable, its reopening with stringent conditions should be examined afresh by a panel comprising representatives from National Environmental Engineering Research Institute (NEERI), Central Pollution Control Board (CPCB), Tamil Nadu Pollution Control Board and three nationally acclaimed environment experts.
“There is a genuine concern of the state as custodian of the health and lives of residents of Tuticorin. We cannot brush it aside as governments irrespective of political party have supported closure of the plant. At the same time, it is a national asset, as described in our 2013 judgment. There is national interest involved. We can ask the panel to examine all issues and give us a report within a month. In addition, we can quantify the damages the company has to pay for past violations,” the bench said.
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1: https://timesofindia.indiatimes.com/business/india-business/explore-restart-of-vedantas-copper-plant-supreme-court/articleshow/107702755.cms
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