The TNPCB, under instructions from District Collector Ashish Kumar, issued a notice directing the Vedanta group company to close the plant, officials said.
Company officials said they have started shutting down the operations of the unit complying with the TNPCB order, which came a week after an unspecified gas allegedly leaked in the area on March 23.
The gas leak caused mild suffocation, sore throat and eye irritation to several people in the locality who suspected that it originated from Sterlite, dealing in sulphuric acid.
Based on an inspection report by Pollution Control Board, Revenue Divisional Officer K Latha had served a notice on March 24 to the company seeking its reply.
Sterlite officials, had, however, claimed that their plant was safe and they followed the highest safety norms.
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