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Tuticorin Sterlite Copper plant accounts for 40 per cent of country's copper: Will hit 800 units and jobs -Deepak Patel

-The Indian Express

Tuticorin Sterlite Copper plant shutdown is also likely to impact India’s copper exports as around 1.6 lakh tonnes of Tuticorin plant’s production is sold internationally.

The Tamil Nadu government’s decision Monday to shut down Vedanta Limited’s copper plant at Tuticorin, which accounts for a 40 per cent share in India’s annual copper production of 10 lakh tonnes, could have a downstream impact on around 800 small and medium units in the electrical sector.

These include cable manufacturers, winding wire units and transformer manufacturers who source from the Tuticorin unit of Sterlite Copper — most of these units are in the country’s western and northern regions.

The shutdown is also likely to impact India’s copper exports as around 1.6 lakh tonnes of Tuticorin plant’s production is sold internationally. Ratings agency ICRA, in an April report, has said that the consumption of copper in the country has been increasing steadily over the past five years and at a current local demand growth of 7-8 per cent per year, India is projected to turn into a net importer of the metal by the year ending March 2020 if no new plant is commissioned. The shutting down of the Tuticorin smelter could potentially advance this projection.

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