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Tamil Nadu: No lasting influence of Sterlite Plant shutdown: Industrial



CHENNAI: The industrialists in Tamil Nadu, one of the country's leading manufacturing sites, believe that the permanent closure of the Vedanta Sterlite Copper Works will not affect the country's image as an investment location, but the circumstances of the shuttering should lead the government Develop ways to monitor polluting industries and investigate why the sterlite issue has come to such violent death.

The government of Tamil Nadu violently shut down Sterlite Copper on Monday after three months of riot against the plant, which caused damage to the environment, according to local residents, and killed 13 people last week after the police opened fire on the demonstrators. The Vedanta unit had announced a second cabin that would have doubled its capacity of 4 lakh tonnes per year.

Jairam Varadaraj, managing director of the company ELGI Equipments of Coimbatore, which manufactures air compressors and automotive equipment, said the events of the sterlite case could not be reason enough to discredit Tamil Nadu's profitability as an investment objective. "I do not know if this raises the bigger question (whether investing in Tamil Nadu will cease) .We are in Tamil Nadu and we know the circumstances, but for people outside of Tamil Nadu there might be more news from this incident, but it's all part of the game. "

Lakshmi Narayanan, one of the founders of software exporter Cognizant, said he was more interested in options before a government faced with a factory such as the Sterlite copper smelter. "What options are available when a government is confronted with a situation that occurs in the case of Sterlite? What are plants doing elsewhere in the world? What options are there in clear, quantitative forms for the decision?" I am not very worried about the result, but the process of evaluation and a conclusion based on it is not available, which requires a lot of research. "

For Tamil Nadu, closure comes at a time when production investment is slipping. Actual new investments in the state have tripled from 4.793 billion in 201

6 to 1.574 billion in 2017, according to the Ministry of Industrial Policy and Promotion. Industrialists who did not want to be named indicated that weak governance and perceived political instability could have contributed to the case.

But even in Maharashtra – the country's most industrialized country – investments fell from 40.588 billion in 2016 to 18.983 billion in 2017, according to the same report.

While the Vedanta unit's experience requires a keen eye on the industrial climate for potential investors, industrialists believe it will still be episodic and not a trendsetters for the future. R Dinesh, one of the family members who manages the $ 7 billion group, said, "No, that will not have a lasting impact because business decisions are based on the business experience, not on an individual company."

The question of whether India is a net importer of a net exporter in FY19 is large if the Vedanta Group company is closed.

According to Urvisha H Jagasheth, an analyst at CARE Ratings, Sterlite contributed 18% to 18% of the country's refined copper output during the fiscal year.


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