Sterlite Copper, Thoothukudi: a lost social licence

Vedanta's Sterlite Copper smelter in Thoothukudi, Tamil Nadu, faced long-running complaints from local residents about air and water pollution. In May 2018, protests against the plant ended in police firing in which 13 people were killed. The plant was shut down the same month.

Vedanta challenged the closure. In August 2020, the Madras High Court rejected its plea to reopen the unit. On 29 February 2024, the Supreme Court dismissed Vedanta's special leave petition. The bench said the health and welfare of the area's residents was of "utmost concern" and that the state government was responsible for protecting them.

The plant has remained shut since May 2018.

• Long-running pollution complaints and protests from the local community.
• Repeated legal and regulatory challenges to the plant's operations.
• A large industrial asset dependent on continued state and community acceptance.

• A plant can hold permits and still lose its social licence to operate, with permanent loss of the asset.
• Community conflict around a single site can become a group-level valuation issue.
• Courts in India give heavy weight to public health and the environment in such disputes.
• Track grievances, court cases and regulator actions over years, not just the latest annual report.