Supreme Court proposes expert panel to inspect Vedanta copper plant in Tamil Nadu

The Supreme Court on Wednesday proposed the formation of a committee to inspect the closed Sterlite copper unit in Tamil Nadu's Tuticorin and suggest further compliances and a way forward. While making the observation, the top court also said that shutting down a plant of "national importance" will not serve anybody’s purpose.

A three-judge bench, headed by Chief Justice of India DY Chandrachud, stressed the need to balance national assets with environmental considerations. "Country should not lose its assets, but the environment needs to be adhered to. The copper plant is a necessity for the nation. There are very few copper smelters in the country," CJI Chandrachud said.

The plant, owned by Vedenta Group, has been closed since May 2018 after 13 people were killed as police opened fire during a protest over alleged pollution caused by it in the nearby areas.

The top court sought input from Vedanta, the Tamil Nadu government, and the state pollution control board on the proposed expert panel.

While the court clarified it couldn't grant permission for the interim refurbishment of the plant, it emphasised that the matter pertains to the state's public interest, private interest of an industry, and employment of several people, a way forward has to be found out.

"So how do we find a way forward? You know, we have to find some way forward...The easiest thing in the world for them and for us is to shut down a plant. You (Tamil Nadu and state pollution control board TNPCB) also explore what should be the best modalities to subserve the public interest," the bench said.

"Come back tomorrow so that we can then do something. And rest assured that any stringent condition that you (Tamil Nadu) want us to put, we are more than willing to put in that order, which protects interest of both sides. The community must have the confidence," the CJI said.

The court may request the expert panel, representing both sides, to provide a report within four weeks on pollution and environmental norm compliances. Following this, the plant could be considered for reopening.

Furthermore, the court said it cannot be “oblivious to the fact that the community in Tuticorin also has to be carried along” because they have a history of gas leaks also.

During the hearing, the court expressed concern over the submission that the Tamil Nadu Pollution Control Board (TNPCB) and the state government referred to five types of violations on the part of the firm in their show cause notice and that the Madras High Court judgement later dealt with several other alleged violations.

"You are shutting down an industry. We are not a banana republic. We are governed by the rule of law. They (firm) may be the violators, but you have to follow fairness in your approach," the CJI said.

Senior advocates for the state government and pollution control board argued that multiple violations warranted the plant's closure. Meanwhile, the firm contended that no specific material violations were alleged.

The hearing is set to resume on Thursday, with both parties presenting their views on the court's suggestion to resolve the closure impasse.