Sterlite Copper keeps all doors open for the Thoothukudi plant restart

Sterlite Copper has received 125 bids for the two sets of EoIs it recently floated for contract works

Sri Peraathu Selvi Ammal Thirukovil at Mattakkadai, a small temple in the city of Thoothukudi, is a preferred destination for hundreds of devotees every day. Possibly viewed as a corporate seeking divine intervention or an attempt to win the hearts of locals, Vedanta's Sterlite Copper constructed a new temple here a few months ago.

Exactly five years and three months ago, in May 2018, Vedanta's Sterlite Copper unit was closed following an order issued by the Tamil Nadu Pollution Control Board (TNPCB). 

Divine intervention is just one of a series of steps taken by the company to immediately restart plant operations if the Supreme Court verdict is in its favour. From kick-starting training programs for potential employees to nearly finalising the bidding process for contract works, the company is leaving all doors open for a swift plant restart. The final round of hearings for the case is scheduled for August 22 and 23, with a verdict expected soon. According to a source, the company has already received more than 125 bids for the two sets of expressions of interest it floated in June.

"With respect to the confidentiality of the firms involved, Sterlite can confirm that more than 125 vendors, among the many more who applied, can be taken under consideration for any forthcoming work on the plant. This strong interest from a variety of stakeholders reflects the industry's recognition of Sterlite's commitment to excellence and adherence to high standards," said a source aware of the development. Moreover, the company has launched a skill development training program in Coimbatore to empower individuals with trade-level skills. The program encompasses training for fabrication fitting, welding, insulation-sheet metal, millwright fitting, and electrician work, among others.

"To begin with, 97 individuals from Thoothukudi are actively undergoing training with the GKD Institute, Coimbatore focusing on fostering practical skills and industry-relevant knowledge. Their structured curriculum and expert guidance will benefit them as part of Sterlite's commitment to nurturing local talent and facilitating sustainable employment prospects for all the participants of this program," the source said.
 

Conversely, protestors view the company's actions as a 'political stunt'. "This is a political manoeuvre. People desire permanent closure. The High Court meticulously identified various violations. Now, the matter is likely to be taken up for a final hearing. It will be subject to the order of the Supreme Court decision. Reopening the unit could have a drastic environmental impact," said Jim Raj Milton, a senior leader of the People's Right Protection Centre (PRPC) in Tamil Nadu, an NGO that participated in protests against the Sterlite unit.

On June 12, Sterlite Copper released its first advertisement inviting expressions of interest (EoIs) for conducting "restart activities" at its Thoothukudi unit in Tamil Nadu. The advertisement stipulated that interested parties should have the capacity to employ approximately 4,000 people (both skilled and unskilled) in and around Thoothukudi. The EoI's scope includes safety assessments and audits of structures and buildings, repairs and rectifications, engagement with OEMs or experts for certification, replacement of plant and machinery, and commissioning of plant and machinery to achieve the designed capacity.

This was followed by another set of EoIs on June 20, intended for supplying raw materials like copper concentrate, imported thermal coal, rock phosphate, and petroleum products, among others. The company believes that floating these tenders is a standard procedure, as the procurement and deployment of materials and resources necessary for plant restoration and restart can be a time-consuming process, spanning several months.

The plant ceased production in May 2018 after protests erupted against the firm's plan to double its annual capacity to 800,000 tonnes. Subsequent police firing resulted in 13 deaths and 102 injuries. On June 2 of this year, the company was finally granted access to the plant for maintenance work following a court ruling in April permitting such activities. The plant was established in 1996 and has a capacity of around 400,000 MTPA.