InvestorQ : Why is Vedanta looking to set up another copper manufacturing plant in India?
Priyanka N made post

Why is Vedanta looking to set up another copper manufacturing plant in India?

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Neelam Naik answered.
1 month ago
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One reason people are surprised by this definition is that Vedanta already has a huge copper facility at Tuticorin in Tamil Nadu, which has been lying idle since 2018 after protestors had raised objections to the environmental pollution that the plant was causing and the negative impact that it was having on the flora and fauna of the region. This could be one way in which Anil Agarwal is hedging his bets on the Indian copper market.

One thing is certain, that notwithstanding troubles at Tuticorin plant, Anil Agarwal is still betting on copper in a big way. As of now, Vedanta is aggressively scouting for locations for a new copper smelter in India. According to sources, Vedanta plans to set up a 500,000 TPA copper smelter complex that will entail an investment of Rs.10,000 crore. Vedanta’s 400,000 TPA copper factory in Tuticorin is shut since 2018 as per the state government order.

It looks like Vedanta does not want to miss out the commodity game at a time when copper prices are at a 9-year high. India’s copper needs are set to grow exponentially in the coming years. Availability of copper is key to implementing projects in electric vehicles and clean energy. The impact of the shutdown at the Tuticorin facility was such that it resulted in India becoming a net importer of copper.

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