New Delhi : The Supreme Court on Wednesday suggested appointing a bipartisan expert committee to take care of concerns of the state government and Vedanta group and explore the possibility of reopening Vedanta’s copper smelting plant in Tamil Nadu’s Thoothukudi. Until the closure of the Sterlite Copper plant in 2018, India was a net exporter of copper for nearly two decades.
The apex court observed that national interest can’t be overlooked and there are few copper smelters in the country, the nation should not lose this asset.
A three-judge bench led by Chief Justice of India D Y Chandrachud and comprising justices J B Pardiwala and Manoj Misra, is hearing Vedanta group’s plea regarding the closure of its Sterlite copper unit in Tamil Nadu’s Tuticorin. Senior advocate Shyam Divan, represented the Vedanta group, and senior advocate C S Vaidyanathan and Gopal Sankaranarayan represented the respondents, which included Tamil Nadu government and others.
The bench proposed an expert committee to examine if Vedanta can resume operations, to prescribe safeguards. The apex court has proposed that the committee can include NEERI, IIT, TNPCB, CPCB, and three environmental experts. Tamil Nadu opposed the committee, stating that repeated violations by Vedanta do not warrant a relook at the closure of the plant.
The CJI, in the post lunch session, told the counsel, for the parties before the court, said: “we cannot lose sight of the overall national interest….if we can have sort of a bipartisan expert committee where your concerns over the fact that there should be determination (by the company) and their (state government ) concerns that they custodians of welfare of residents, that is taken care of….”.
The bench said the committee could look at five grounds (mentioned in the show cause notice issued to the company) and also anything else the state government wants to suggest. “Also, we must put you (company) on terms that if the committee comes to a conclusion that consent to operate should only be given subject to your company doing additional things, which means investment of more Rs 100 crore that is not our concern….”, noted the bench.
The CJI said If the committee feels that to make this a sustainable project, “we will impose these conditions then on one hand concerns of the state as custodians of the health of the people will be protected and second your concern that you have put investment, and our broader concern that there should not be a facility, which is lost to the nation. Some sort of a middle ground can be reached. The committee can perhaps take its decision in one month or so….”. Divan said he is in broad agreement with the suggestion of the court.
During the daylong hearing, the bench said the plant has been non-operational since 2018, the company cannot be permitted to operate the plant as it was in 2018 and it cannot pass an interim order regarding refurbishing. “That should be subject matter of a domain expert...who would say today's state of art facility for a copper smelter plant should xyz…for company it is a business investment…for a win-win situation for everyone, we cannot exclude the state’s concerns. The governments in Tamil Nadu irrespective of political dispensation have been one, on the approach towards this particular smelter. We have to find a way forward”, said CJI.
The CJI added: “Look at the negative, the easiest thing for them (state) and us to shut down the plant…”. Tamil government counsel said they can sell the plant and they attempted to sell the plant. However, the CJI said some other players will invest.
The CJI asked the Tamil Nadu government counsel to explore what is best to serve the public interest and also send a message to the community, as the community in Tuticorin has to be carried along. “If their confidence is raised by the local government and our order that would protect everybody’s interest….”, said the CJI.
The bench said inside of pushing an order down everybody's throat, it is much better to have an order where broadly all concerns, of both state government and the company, are addressed. “You can suggest who can be domain experts, we can ask them to also propose some names so that ultimately there is a broad element of consensus on both sides….which company do business if the state government is not on board”, said CJI. State counsel said last year the Tamil Nadu government has given permission for hydrocarbons to Vedanta, therefore nothing against this company and the only issue is pollution.
“Therefore, what is the way forward? You have given them permission for hydrocarbons, indicating there is no allergy for them per se….any stringent condition you want us to put in that order, which protects both pollution control board and the people there”, said the CJI, scheduling the matter for further hearing on Thursday.
During the morning session, the bench proposed that it would appoint a committee consisting of a representative of NEERI, which is a nationally renowned, one of the IITs, which has very strong environmental department, "we will have Tamil Nadu pollution control board, Central Pollution Control Board, and we will nominate three nationally renowned experts on environmental science".
"What will be the terms of reference of the committee: whether an industry of this nature (copper smelter) can at all be situated in the area, what are subject conditions to which the industry may be permitted to operate, and what are the environmental safeguards, what are safeguards which will be imposed on industry as a condition for operating, and in case of past violation, what is the compensation which will be computed for the court to pass suitable order", the CJI suggested.
The bench said this will ensure protection, reparation for any past violation, and it will also ensure there is no per se reason to shut down the industry. “The country should not lose this asset (copper smelter) and they should also be put on terms”, the bench suggested.
In 2018, the Tamil Nadu Pollution Control Board (TNPCB) ordered the closure of the controversial Sterlite Plant after massive protests by locals, social and environmental activists who alleged that the facility was causing widespread and severe pollution, leading to the spread of serious diseases among locals. The decision of the Tamil Nadu Pollution Control Board was later upheld by the Madras High Court in August 2020.
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