Vedanta to sell off its Tuticorin copper facility, invites expressions of interest

20 Jun 2022 , 08:59 AM

Vedanta has issued an EoI request for its Tuticorin-based smelter, which has been closed since mid-2018 due to a Tamil Nadu government injunction. The deadline for submitting EoI is July 4th, and bids are being solicited in collaboration with Axis Capital.

The transaction includes plant components, such as an oxygen-producing facility, as well as residential houses. The plant has been threatened with a shutdown due to alleged violations of environmental regulations.

Vedanta has put up an advertisement seeking offers for the facility – Sterlite Copper — which produced 40% of India’s copper before it was shut down. It employed 5,000 people directly and another 25,000 indirectly at the time of its shutdown.

Vedanta also stated” The plant produces approximately 40% of India’s demand for copper and contributes around INR 2,500 crores to the exchequer, 12% of Thoothukudi port’s revenue, 95% market share for Sulphuric Acid in Tamilnadu, direct employment to 5000 people and another 25,000 indirectly through the value chain. The plant meets the highest standards of ESG and environment standards compared to global peers. The plant plays a vital role in meeting the growing domestic demand of copper and meeting India’s commitment to a green economy.” In an advertisement.