The protests against Sterlite's Tuticorin plant have been on for nearly 100 days. (Photo: Reuters)

Facing the wrath of protesters in Tamil Nadu's Tuticorin, Sterlite Copper has decided to axe nearly 32,500 jobs at its controversial plant in the coastal city. This comes after protests against the plant turned violent and claimed 13 lives, besides injuring dozens.

Sterlite Copper's Tuticorin plant directly employs 3,500 people while 30,000-40,000 people are employed indirectly. Of the 3,500 direct employees, 2,500 are contract workers who have been issued notices under the 'force majeure' clause of their contracts, Sterlite Copper CEO P Ramnath told BusinessToday.in.

For time being, the company plans to retain around 1,000 employees on its payrolls. Nearly all of the indirect employees will be rendered jobless as they earn their living from activities associated with the Tuticorin plan, such as supply, logistics, transport, and copper wire units. These jobs will remain suspended as long as the plant shut.

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The protests against Sterlite's Tuticorin plant have been on for nearly 100 days. Locals are protesting the proposed expansion of the plant and have alleged that the unit damaging the local environment. However, the company has rubbished this charge.

Hearing a petition filed by the protesters, the Madurai bench of the Madras High Court on Wednesday stayed the expansion of the plant. The planned expansion aimed to double the plant's capacity from four lakh tonnes to eight lakh tonnes.

'PLANNED SHUTDOWN'

The company says it is currently on a "planned and extended" shutdown for 45 days starting March 27. The shutdown is to carry out repairs and maintenance activities and will end in the first week of June.

Meanwhile, the Tamil Nadu Pollution Control Board has refused to renew the licence issued to the company to operate the plant. The board says the plant has failed to comply with environmental laws on three counts.

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On its part, Sterlite Copper has denied the charges and has said that it will appeal the board's order.

Asked about the pollution control board's objection to renewing the plant's licence, Sterlite Copper CEO P Ramnath said, "The reasons [for the objection] would be best known to them. We have already been complying with the factors cited by the board. They [board officials] have themselves been visiting the area on monthly basis and taking samples of groundwater."

"We have approached the appellate tribunal. The next hearing is scheduled on June 6. Hopefully, we should be able to get a verdict on that. We will decide the next course of action thereafter," Ramnath added.

On allegations that industrial waste from the plant has increased cancer cases in the region, Ramnath said, "These are unfounded rumours that are being propagated. The plant has been operating for the past 20 years. There are families who live just half a kilometre away from the plant. They are proof that there is nothing wrong with the plant."

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