Tuticorin's wrath not a first for Vedanta: The firm's controversial history in 5 points
A Sterlite copper smelter in Tuticorin, owned by Vedanta Resources, was ordered shut on environmental grounds after 13 people were killed in police firing during violent protests against its expansion.
In Short
- Vedanta's Sterlite copper smelter in TN ordered shut
- London-listed firm has controversial history
- Here's a overview of key events in Odisha, Zambia and Norway
A Sterlite copper smelter in Tuticorin, owned by the London-listed firm Vedanta Resources, was ordered shut on Monday on environmental grounds, after 13 people were killed in police firing during violent protests against its expansion.
Citing two sources "close to the company", Reuters reported on Tuesday that it was working on a legal challenge to the closure.
Residents and environmental activists have long demanded a shutdown of Vedanta's Tuticorin (known locally as Thoothukudi) smelter, which has annual production of more than 400,000 tonnes. They cite air and water pollution -- but Vedanta denies the accusations.
Several cases have been filed against the plant since it started in 1996, and the Supreme Court fined it about US $18 million (over Rs 1.21 crore) in 2013 for breaking environmental laws.
The Tuticorin saga isn't the first time Vedanta, whose business empire has expanded to regions including Africa, Ireland and Australia, has courted controversy. Here's a brief overview.
'FOIL VEDANTA' | Once Vedanta listed in London in 2003, an environmental group called Foil Vedanta targeted it in a sustained campaign, and holds demonstrations outside its annual meetings in the UK capital.
NIYAMGIRI HILLS IN ODISHA | In 2014, Vedanta lost a battle to mine bauxite in the Niyamgiri hills in Odisha, which the Dongria Kondh tribe considers sacred. The rejection forced the firm to import expensive bauxite for an aluminium plant, also in Odisha, and delay its expansion.
ZAMBIA | A 2017 Reuters report said a UK court "threw out" Vedanta's "attempt to block" a legal challenge from around 1,800 villagers in Zambia, a large nation located in southern Africa (neighbouring Zimbabwe), "over alleged pollution of their villages." According to a BusinessToday.in report, Vedanta's appeal is being heard in England's Supreme Court.
NORWAY | In 2007, the Norwegian Pension Fund (which is government-run) dropped Vedanta from its investment portfolio, partly because of environmental issues in India. In 2014, the fund dropped Vedanta's then unit, Sesa Sterlite.
'GROUNDS TO STAY AWAY' | Norway's Council on Ethics, which makes recommendations to the pension fund, said it did a "particularly thorough assessment" of Vedanta Resources in 2016, and found grounds to stay away from it. The Edinburgh-based investment fund Martin Currie has also sold off its Vedanta shares on ethical grounds.
Inputs from Reuters
WATCH | India Today accesses exclusive footage of Tuticorin violence