CPF Convener Challenges the Sterlite Expansion in the Madras High Court of Madurai bench

January 6th, 2010, 10:19 AM

The Anil Agarwal-owned Sterlite Industries has put on hold its proposed Rs 2300-crore copper smelter expansion project at Tuticorin in
southern Tamil Nadu as a dispute related to the project is being fought in court.

The trigger to put on hold the expansion plan came on the back of a writ petition filed in Madurai bench of the Madras High Court questioning the environmental clearances the company had obtained from the Union Ministry of Environment and Forest and the Tamil Nadu Pollution Control Board (TNPCB). When the matter came up before the Madurai bench on Tuesday, Sterlite told the court that it will not go ahead with the expansion till the issue is resolved.

Earlier, Sterlite had announced its plan to invest Rs 2,300 crore to set up a four lakh tonnes per year copper smelter plant as part of expanding capacity at Tuticorin. But, it was challenged in the court by Pushparayan, a project director with an organisation called East Coast Research and Development.

The court filing said the Ministry of environment and forests cleared the company’s plans to expand capacity from 1,200 tonnes a day to 2,400 tonnes a day, without conducting a public hearing on the same. Therefore, the petitioner wanted the court to declare the clearance illegal and order a public hearing & also restrain Sterlite Industries from continuing or operating as per the expanded capacity.

But, before the court issued any order, Sterlite’s lawyer said that the company will not proceed with the project till the matter is resolved and that it will also obtain a “consent to operate” from the TNPCB.

“The court has admitted the petition and notice has been ordered. All respondents will file their counters in four weeks,” said V Prakash, the lawyer for the petitioner. The respondents include the environment ministry, the environment department of Tamil Nadu, TNPCB and Sterlite Industries.

At the same time, an official in Sterlite Industries, Tuticorin, who did not wish to be named, played down the issue and said, “It’s obvious that we will not go ahead with the project without a proper consent.”

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