Vedanta Says India Relies on China After Sterlite Copper Plant Closure in Tamil Nadu
The Sterlite copper smelter plant in Thoothukudi, Tamil Nadu, was closed in May 2018 by the Tamil Nadu government due to pollution concerns. Vedanta, the company that owned the plant, stated that this closure has made India dependent on China for copper imports. The plant used to produce 4 lakh metric tonnes of copper annually, which was 36% of India’s total refined copper demand.
Vedanta emphasized the importance of copper in various industries such as construction, infrastructure, power, transportation, consumer durables, and green technologies. Copper is also crucial in hospitals for making surgical instruments. The company claimed that the closure has negatively impacted India’s self-reliance in critical raw materials and exposed the country to global price volatility and supply chain disruptions.
China’s dominance in the copper industry is growing, with its smelter capacity expected to reach 12.6 million tonnes by 2024. This has forced India to import chemicals like sulfuric and phosphoric acid, and gypsum from countries like Japan, South Korea, and the Philippines. The demand-supply mismatch is also affecting India’s decarbonization strategy and the domestic electric vehicle market.
The closure has opened India’s copper market to international players and allowed other domestic companies to expand without much competition. Vedanta highlighted that this situation could hurt local manufacturers of solar modules, wind turbines, and battery storage systems, who may have to rely on expensive imported copper or reduce their production targets.
Doubts Revealed
Vedanta -: Vedanta is a large company in India that works with metals and mining. They produce things like copper, aluminum, and zinc.
Sterlite Copper Plant -: The Sterlite Copper Plant was a factory in Tamil Nadu, India, that made copper. Copper is a metal used in many things like wires and electronics.
Thoothukudi -: Thoothukudi is a city in the state of Tamil Nadu in India. It is also known as Tuticorin.
Tamil Nadu -: Tamil Nadu is a state in the southern part of India. It has many big cities and is known for its temples and culture.
Copper Imports -: Copper imports mean buying copper from other countries. India now buys copper from China because the Sterlite plant is closed.
Pollution Concerns -: Pollution concerns mean people were worried that the Sterlite plant was making the air, water, or land dirty and unsafe.
Refined Copper -: Refined copper is copper that has been cleaned and processed so it can be used in making things like wires and electronics.
Self-reliance -: Self-reliance means being able to make or get what you need without having to buy it from other countries.
Electric Vehicle -: An electric vehicle is a car or bike that runs on electricity instead of petrol or diesel. They need copper for their batteries and motors.
Green Technology -: Green technology includes things that help the environment, like solar panels and wind turbines. These also need copper to work.
