Will Vedanta's Tuticorin plant start again? Know why this plant is crucial

Vedanta Chairman Anil Agarwal has urged PM Narendra Modi government to allow the re-opening of its Tuticorin plant that has been closed since May, 2018. Agarwal requested PM to think of reopening the Tuticorin plant as the closure has resulted in India becoming a lead importer of copper from being a lead exporter till 2018. Investors are now wondering whether the plant will be allowed to open. Zee Business Managing Editor Anil Singhvi has analysed the segment for investors.

Speaking on the impact of this plant's closure,  Anil Singhvi said, "Vedanta's Tuticorin Plant was closed in May, 2018 due to the local protests over its environmental impact. But after its closure, Indian import of copper drastically increased while its export went down to negligible levels."

See Zee Business Live TV streaming below:

Singhvi went on to add that taking data from FY2017 to FY2020 on Copper import, it stood at $13.5 crore in FY 17 while it stood at $24.3 crore, $55.1 crore and $44.7 cvrore in FY 18, FY19 and FY 20 respectively. Similarly copper exports in India in the same period were $176 crore in FY17, $243 crore in FY18, $$30 crore in FY 19 and $4.2 crore in FY20. So, after the closure of Vedanta's Tuticorin's plant, India became a lead importer of copper from being a lead exporter of copper. 

Zee Business Managing Editor said that importance of the Vedanta's Tuticorin Plant can be understood by a simple fact that it churns out 40 per cent of the net copper produced in India.

On impact on Vedanta after the plant's closure, Singhvi said, "Vedanta is losing Rs 5 crore per day due to the closure of its Tuticorin Plant. Its EBIDTA is being hit by near 5 per cent due to the closure as the plant has the capacity to produce 40 lakh ton copper per annum and it is home to around 800 SMEs and MSMEs that work as vendors."