Industry associations see vested interests behind the agitation for Sterlite plant closure

Our Bureau Updated - May 03, 2018 at 11:40 AM.

A view of the Sterlite plant in Thoothukudi

A couple of downstream industry associations have come out to bat for the beleaguered Sterlite Copper. They have made an appeal to the State government that any step leading to permanent closure of the factory at Thoothukudi will not only affect the livelihood of thousands of people, but also cause hardship to small industries in the State.

Chemical Industries Association (CIA) and Winding Wire Manufacturers Association (WWMAI) have raised concern over the growing trend of opposing every industrial project in Tamil Nadu, one of the few States that led industrialisation in the country, without respecting the decisions of tribunals and courts. “The present agitation against Sterlite Copper appears to be another instance of whipping up passion against project unjustifiably,” Chemical Industries Association (CIA) said its appeal to the State government.

There are more than 1,000 people directly employed in the Sterlite unit. Also, there are another 1,000 contract labourers. Behind each one of the earning employee, there is family of 4-5 people. Moreover, more than 100 small factories are using the by-products of Sterlite for their operation and existence.

A lot of people are depending on these small units for their livelihood, it added. CIA explained that due to the recent closure of Sterlite, price of sulphuric acid has increased three-fold and chemical units are facing hardship. It may even lead to the closure of small units.

Other units hit

“Sterlite Copper was meeting more than 50 per cent of our domestic requirement. The sudden closure of the factory has resulted in huge loss to winding wire industry and has also affected the production of electrical and electronic components,” WWMAI said in a letter to the Chief Minister.

“If it remains closed, the industry will be forced to import copper at five per cent above the domestic prices, which will have huge cost implications for the units,” it added. They also questioned why only Sterlite unit was being opposed while all other sulphuric acid plants in Tamil Nadu were operating smoothly without any protest.

Published on May 2, 2018 16:59