Vedanta jumps 4% as panel says Sterlite plant closure is ‘unsustainable’

Reuters | | Updated on: Nov 29, 2018

Shares of copper and aluminium producer Vedanta Ltd jumped as much as nearly 4 per cent to Rs 200.65 as the three-member independent committee formed by the National Green Tribunal has termed the shutdown of Vedanta’s Sterlite copper plant in Thoothukudi, Tamil Nadu, “unsustainable”, and said it it is against the principles of natural justice.

The Tribunal was hearing arguments in the ongoing case between Sterlite and the TN Government, with the latter keen on the closure of the plant. It said that there were insufficient grounds to permanently close Vedanta's copper smelter and the TN Government’s decision to shut it amounted to administrative overreach.

The panel said authorities in Tamil Nadu, where the plant is located, had failed to comply with the procedures before shutting down the smelter and the company was not given any notice or opportunity to explain its position.

The Tamil Nadu Government had ordered permanent closure of the smelter in May after 13 people protesting to demand its shutdown on environmental concerns were killed in a police firing. Now the environment court will decide on the panel's report on December 7.

More than 5.3 million shares of Vedanta traded by 0431 GMT vs 30-day average of 12.8 million shares.

Published on November 29, 2018
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