Vedanta Stocks Slump After TN Govt Orders Permanent Closure of Sterlite Plant

Vedanta stocks suffer as the Tamil Nadu government ordered the permanent closure of the group's copper plant in Tuticorin on Monday evening. After violent protests last week that lead to the death of 13 people in police firing, the state has asked its pollution control board to seal the Sterlite Copper unit.

The issued order has been posted on the plant's gate and the unit sealed by the district officials of Tuticorin. Several protest and campaigns have been conducted by the locals in the past few months against the copper factory over environmental pollution concerns. The plant had not taken sufficient steps to control pollution as per regulations.

The order issued mentions the refusal of the Pollution Control Board to renew its consent to operate Vedanta's copper smelter plant as of April 9. It further mentions directions given by the board to the plant for closure and discontinuation of power supply on May 23 that was cut the very next day.

The locals had demanded the closure as they claimed that the pollution caused by the Sterlite plant led to health problems among them and was also depleting the groundwater table.

The government of Tamil Nadu on Tuesday, further ordered the cancellation of land that was allotted to the company for expansion. It was supposed to expand the Sterlite's capacity from 4 lakh tonnes a year to 8 lakh tonnes.

The news that came out after market closure led to the shares of Vedanta opening almost 6.21 percent lower than to Rs 237.90. It is also its 11-month low.