starting many industries not only in Tuticorin but elsewhere in India and abroad.

That is why it is

included in the History of Trade and Industries in the Port City of Tuticorin. Like this another big industry

that is called Copper Industry is taken up in the next chapter. Copper industry is the brain child of

modern scientific and technological development.

CHAPTER V

COPPER INDUSTRY

Traditionally Tuticorin is known for its natural pearls, fishing and salt. The establishment of a

major port is responsible for the growth of it as an industrial city with corporates like SPIC, TAC, Heavy

Water Plant and Tamil Nadu Thermal Power Station adding to this Sterlite Copper establishing their

presence.

In the words of Sterlite’s Chairman, Anil Agarwal, “I always look upon Tuticorin as a ‘Mini Dubai’

perhaps hinting at the strategic location of the city and the immense potential for growth and

prosperity”268. Almost providentially, Sterlite was established in Tuticorin in the year 1994. Sterlite is

one of India’s largest non-ferrous metals and mining company. It stands tall with more than thousand

employees and has to its credit a turnover of about Rs.600 crore269.

It is one of the two custom copper smelters in India with a 45.7% primary market share by

production volume and leading integrated zinc producer with a 79.0% market share by production

volume of Indian zinc market. Apart from this, it is one of the five primary producers of aluminium270.

268
Sterlite copper Tones (pamphlet), Tuticorin, Sterlite Industry, March, 2000, p.1.
269
Annual Report of Sterlite Industries India Limited (here after ARSIIL), Tuticorin, 2007-08, p.1.
270
Ibid., p.2.
Origin

Tamil Nadu Chief Minister J. Jayalalitha installed this plant in Tami Nadu. When Sterlite

Industries Private Limited decided to set up such a major project, many states gave their support. But

the support and the enthusiasm shown by Tamil Nadu was most attractive271. Availability of land in

Industrial Estate, materials and electricity facilities, talented workforce, a good network of road and

railways, tax incentives and corporate business relationship were some of the benefits offered by the

Tamil Nadu Government for setting up this plant in Tuticorin272.

Goal

To create a globally respected, world class metals and mining company that generates

consistently strong financial returns to its share holders.

Strategy

Its goal is to achieve strong financial returns and create a world class metals and mining

company. To achieve this goal, it intends to take full advantage of its competitive strengths.

i) Increasing its capacities through Greenfield and Brownfield projects.

ii) Leveraging its project execution, operating skills and experience, building and managing captive
power plants to develop a commercial power generation business.

iii) Continuing to focus on asset optimization and reducing the cost of production.

iv) Seeking further growth and acquisition opportunities that leverage its transactional, project
execution and operational skills.

271
Sterlite Copper Smelter Projects: Certain Truths and Explanations (pamphlet), Tuticorin, Sterlite
Industries, March, 1996, p.2.
272
ARSIIL, Tuticorin, 1998-99, p.1.
 v) Consolidating its corporate structure and increasing the underlying businesses as an integrated
group273.

First Copper Smelter Project in India

There are two smelters producing copper in India. Both are Central Govt. undertakings. In both,

there is a smelter which has been producing copper for the past sixty years. In Rajasthan also there is a

smelter which has been working for about twenty two years. The Government of India has decided to

increase the production of these two plants and has also given approval for setting up new projects.

Besides the Sterlite project, the government has also approved the setting up of three copper smelters

in Gujarat and one plant in West Bengal. These plants play a major role in the economic progress of our

country274.

Sterlite has got approval from the Government of India, the Government of Tamil Nadu, the

Ministry of Environment and Forests and from the Pollution Control Board for setting up the copper

smelter at Tuticorin. The notable fact about getting an approval or license is the recognition that the

company complies with the very stringent rules covering these approvals275.

Plant Location

The project set up at Tuticorin is in the industrial complex of SIPCOT. The infrastructural

facilities such as land, power, water and more will be provided by SIPCOT. The Proximity of Tuticorin

273
ARSIIL, Tuticorin, 2006- 07, p.9.
274
Sterlite Copper Smelter Projects: Certain Truths and Explanations, op.cit., p.3.
275
Ibid.
Port will ensure both the import of raw materials and transportation of finished products. Further,

Tuticorin is already an established industrial area having major industries such as SPIC276.

Sterlite Industries (India) Limited has tied up with MIM Holding, Australia for the copper smelter

technology. Their ISA-SMELT process is one of the best available and is in use the world over. For the

sulphuric acid plant, the technological tie up is with Chometics International, Canada. The technology

for phosphoric acid plant has been obtained from Hydro Agri International, United Kingdom. This

ensures the availability of the latest state-of-the-art technology for Sterlite projects277.

This would be the first copper smelter to be set up in the private sector in India and will have a

capacity of 1.0 lakh tonnes per annum (tpa) of copper cathodes. The project envisages an investment of

Rs.1000 crores278. As a measure to control pollution and also effectively utilize the effluents of the

smelter, Sterlite also proposes to set up a 350000 tpa sulphuric acid plant and the sulphuric acid thus

produced will be completely utilized to manufacture phosphoric acid using rock phosphate. The

capacity of Sterltie’s phosphoric acid plant will be 350 tonnes per day. Thus, Sterlite has ensured that

the effluents of the smelting process are utilized effectively in an environment-friendly manner.

The Lube/Transformer oil refinery is another major diversification of Sterlite. The capacity of

the plant will be lube oil 3,80,000 tpa and transformer oil – 2,60,000 tpa. The plant will also generate

by-products. The capital outlay for this project is estimated at Rs.300 crores279.

276
S.Diwan, Sterlittai Virattuvoam (Tamil), Sangoli, Madras, 26th September.1997,
277
Sterlite Anchors (pamphlet), Tuticorin, Sterlite Industries India Limited (here after SIIL), 1997, p.1.
278
Ibid., p.2.
279
Ibid,
Manufacturing process

The copper concentrate containing about thirty percent copper is mixed with coal and fluxes

and then it is pelletised. The Lead is smelted in ISA-SMELT furnace resulting in copper matter slag280.

They are then sent into an Electric Settler furnace where slag is withdrawn and matte is

transferred to convertor. In the convertor, flux is added and copper gets enriched and Blister copper is

formed in this process. The Blister copper thus formed is taken out from convertor and sent to mode

furnace where copper is further purified281. In sulphuric acid plant, water and gases are generated in

the ISA-SMELT furnace and converted in the form of sulphur-di-oxide. This again is cooled, cleaned and

thereafter treated in a four-pass convertor and are converted into sulphuric acid.

In phosphoric acid (H3PO4) plant, H2SO4 is generated and it will reach Rock Phosphate to

produce phosphoric acid. The technology is obtained from Hydro Agri International, United Kingdom.

This manufacture of phosphoric acid will partially meet the requirement of P2O5 for the much needed

phosphatic fertilizers in the country282.

The Lube oil / Transformer oil along with the by-products are manufactured from reduced crude

oil by distillation and extraction. The total output of the refinery would be one million tonnes per

annum.

Prodution

Sterlite copper smelter complex, Tuticorin is based on ISA smelt technology for primary smelting

and conventional pierce smith converters and Anode Furnace for Secondary smelting. The latest smelt

280
ARSIIL, Tuticorin, 1999-2000, P.10.
281
Sterlite Copper Tones, Tuticorin, October, 1998, p.2.
282
ARSIIL, Tuticorin, 1999-2000, P.12.
 process is ‘Submerged’ Bath smelting Technology which is developed by CSIRO (Common Wealth

Scientific Industrial Research Organisation) and MIM Process Technologies Ltd, Australia.

Copper concentrate has three major constituents, namely Copper, Iron and Sulphur. Smelting is

an enrichment process in which iron and sulphur are removed along the flow. Copper concentrate

received from the port is stored in warehouses and fed into ISA smelt. At temperature of 1100 to 1200

degree centigrade by adding required amount of oxygen and oil, copper is enriched to 60 per cent and

part of sulphur goes to acid plant as sulphur di-oxide (SO2) and iron goes into fayalite slag283.

Mixture of matte and slag is taken to Rotary Holding Furnace (RHF) and by gravity, matte and

slag are separated. Slag is granulated and matte is taken to converter. At a temperature of over 1200

degree centigrade, air is blown into the matte which is converted into 98 percent copper known as

blister copper284. During the blow iron reports to slag, it is returned to RHF and granulated, and sulphur

goes to acid plant as sulphur di-oxide. Blister copper is taken to anode furnace where it is further

refined to 99.5 percent copper and cast as anodes285. Those anodes are bundled and sent to refinery at

Silvassa (a union territory of Dadar and Nagar Hawaii in Western India) for further refining.

Figure 5.1

Sterlite

STERLITE

² Aluminum ² Copper ² Zinc, ² Chemical products

Cathodes, ² Zinc ingots ² Sulphuric acids
² Cast Copper ² Lead ingots ² Phosphric acids
283
Rods, Wires
ARSIIL Tuticorin, 2001-2002,
ARSIIL, p.1. and ² Phospo gypsum
284
ARSIIL, Tuticorin, 2002-2003,
Cables p.4. ² Hydro fluo silicic
285
Ibid., p.3.
² Electrical cables acids
² Housing wires ² Granulated slag
² Telecom cables
Production performance of Sterlite

Sterlite is India’s largest copper producer. Copper business comprises three major operations:

smelting of copper, refining of copper and processing of its by products.

A smelter refinery, phosphoric acid plant, sulphuric acid plant and copper rod plant are located

at Tuticorin in the state of Tamil Nadu. In Southern India, demand for sulphuric acid was particularly

strong in the international market, especially from oxide leaching metal Industry and sulphur supply and

demand tightness spurred prices to record levels. Sterlite has constituted a team to work on enhancing

the value generated from its by-products as well as through the extraction of minor metals286.

Sterlite is principally a copper smelter and refinery located in India and supported by a copper

mine in Australia. Copper concentrate is also obtained from the captive mines at Australia. Concentrate

is melted and fire-refined into copper anodes in the smelter at Tuticorin. Copper anodes are processed

into copper cathodes through electric refineries. These copper cathodes are used to produce wire rods

at the rod manufacturing units. Sulphur di oxide gas generated in the smelting process is collected and

fed into the sulphuric acid plant and converted into sulphuric acid. It is treated with rock phosphate in

the phosphoric acid plant to produce phosphoric acid287.

286
ARSIIL, Tuticorin, 2007-2008, p.19.
287
ARSIIL, Tuticorin, 2005-2006, p.13.
Raw materials

Sterlite follows a three pronged strategy to procure copper concentrates. Its major raw

materials are captive copper mine called copper mines of Tasmania, obtained from western Tasmania,

which has only 10% of Sterlite’s overall requirement. Two thirds of the company’s concentrate

requirement is processed through long term contracts with global miners across countries like Chile and

Indonesia. The remaining requirement is met by spot market purchases288.

Logistics

Sterlite Smelter is located in the port town of Tuticorin for two reasons.

1. The raw material is either imported from the company’s Australian mines or from global

vendors, saving transportation, time and costs.

2.
The end-product is exported to the Middle East, China, Japan, the Philippines and Thailand.

The company’s location is advantageous for another reason that is Phosphoric acid a by-

product from the manufacture of copper, represents the primary raw material for the

fertilizer industry situated in South India, leading to an immediate off-take, lower

transportation costs and attractive realization289.

Quality

In a quality business, strength in the company’s product and process standard help to various

certifications of ISO systems in all its plants. Sterlite is an ISO 9001 2000 ISO 14001 and OHSAS 18001

certified organization. Internationally recognized ISO 17025 accreditation from National Accreditation

288
Ibid., p.15.
289
Ibid., p.16.
Board for testing and Calibration Laboratories for the Silvassa Laboratory, and use of state-of-the-art ISA

refining technology testifying to a high quality of end product. The company has implemented an

employee driven total quality management discipline to foster a culture of excellence. Employees are

encouraged to offer suggestions for improvement which are discussed, tested and often implemented.

Employees whose suggestions are accepted are rewarded and their contribution is publicly recognized.

To ensure day-to-day operational predictability, the company instituted a set of pre-defined and

documented standard operating procedures (SOP), deviations from which are not permitted.

Appropriate changes are made to the SOPs following a scrutiny, review and approval by all departmental

and unit heads.

Periodic reviews are held for scrutiny and analysis together with internal audits carried out by

external agencies every six months. Training (based on skill matrix of individual employees), open

communication and employee participation in various management processes ensure high process

compliance290.

Human Resources

The vision of the company to be the world’s lowest copper cost producer is the prime mover of

the business and of all the employees. HR is working with the production and maintenance units to help

achieve this vision by providing them the right manpower, right training and right motivation to achieve

the same. The very goal itself inculcates a sense of pride in all the employees and drives exceptional

performance and commendable levels of commitment and involvement at all levels alike291.

Building Organisation

290
Ibid.
291
ARSIIL, Tuticorin, 2003-2004, p.28.
 The company has been aggressively inducting fresh professionals such as Engineers, Chartered

Accountants and Engineer – MBAs from premier institutions all over the country. A new breed of

managers under the banner of “Sterlite Management Services” has been inducted to take charge of

individual businesses.

It is also being ensured that such professionals and their performance are continuously

monitored in order that they are ready to take on higher and more challenging roles in various functions

of the organisation.

In addition, several employees have been provided opportunities to serve in a group company

on seconedment. The main objective is cross-fertilisation of experiences and expertise among the

companies in the group292.

Enabling processes

Each business operation has developed relevant objectives and targets based on its past

performances and current business imperatives, while delineating improvement programmes.

A special emphasis was placed on propagating and implementing the requirements of management

systems (ISO 9001, 14001, OHSAS, 18001 and SA 8000), employee and contractor training as well as

continual reviews / audits for performance evaluation through internal and external experts.

The training activities and programmes are induction training for new employees and

contractors, refresher training for the existing workforce, on-the-job professional training, specialized in-

292
Ibid.
house and external training and advocacy and livelihood-related training for the surrounding

communities. Safety performance is a key agenda at all its review meetings293.

To bring man and technology together in a harmonious way, Sterlite copper has employed state-

of-the-art technology in almost all the fields of its activities, be it the production techniques or the

effluent treatment or secured landfills for solid waste disposal or environmental nurturing. The safety

standards and the safety practices adopted have secured the British, Safety Council Award for Sterlite

copper for the year 1999-2000294. Effectiveness, Efficiency and Excellence are the ‘mantras’ to reach

perfection, and Sterlite copper is relentless in bettering the best. The best project award at the National

Quality Convention and the conferment of ISO 9002-1994 by Det Norsha Veritas are but a few indicators

of its result-oriented hunt towards its “Quality Obsession”.

Sterlite copper does keep pace with the town in setting trends. The town has been transformed

into a veritable metropolis and associating it with only salt, pearl, port, power generation and industries;

but now it is looked upon as a gateway to myriad ventures and highway to pastures new295.

Sterlite copper, marches ahead towards achieving world standards in safety, quality,

productivity and capacity utilization. At present, they are patenting themselves as a ‘totally integrated

copper industry’. The success of Sterlite has been established with the town’s multifaceted roles in the

transport sector, port, railways, industries, wings of trade and commerce, suppliers and customers.

Tuticorin has a rendezvous with glory, and Sterlite Industries (India) Ltd., located at the southern

port town of Tuticorin is fast emerging as the bench mark of industrial development in Tamil Nadu.

Impeccable advantages of a well- developed infrastructure, skilled and productive man power,

293
ARSIIL, Tuticorin, 2006-2007, p.25.
294
Kathiravan Thozil Malar, Kathiravan Industrial Supplementry, Nellai, 1999, p.118.
295
Platinum Jubilee souvenir Report of Indian Chamber of Commerce and Industry, Tuticorin, 2000,
p.2.
harmonious industrial relations, peaceful law and order situation in Tamil Nadu are some of the

advantages for the corporates to have a feeling that this state is an ideal destination for their

investments 296.

Sterlite copper is the first copper producer in private sector and the only fully integrated copper

producer in India. The project located at Tuticorin, an all-weather port in the industrial complex of

SIPCOT, enjoys the infrastructural facilities such as developed land, uninterrupted power supply and

water all ensured by SIPCOT. The proximity to the Tuticorin port also helps ensure the import of raw

materials and smooth transportation of finished products297.

The Sterlite copper has relied upon world-renounced and well-tested state-of-the-art

technology for its smelter and acid plants. The smelter technology from MIM holding, Australia is one of

the best available technologies worldwide and for the sulphuric acid plant, the technologies tie-up is

with Chemetics International of Gonda while for the phosphoric acid plant, the technology is from

Hydro-Agri International, U.K.298 .

The copper smelter which is now operating in its full capacity of one lakh tons per annum

provides direct employment to over 1500 persons and indirect employment to 3200 persons in the

region. The plant has also emerged as one of the prime users of the Tuticorin port resulting in its growth

and overall development.

Sterlite copper attaches much importance to environment and safety and has emerged as one

of the very few plants that have ensured zero discharge by resorting to total recycling. Its secured

landfill for solid waste is first of its kind in south India. More than ninety five percent capture of sulphur

296
Sterlite Copper: Pride and Pearl City (pamphlet), SIIL, Tuticorin, 2004, p.2
297
Ibid., p.3
298
ARSIIL, Tuticorin, 1996-1997, p.8.
omissions from the smelter is used to generate valuable by-products. The region’s safety checks on

processes and equipments and personnel help enhance the overall safety climate in the plant299.

Sterlite has been successfully practical in its attitude by the philosophy of collective progress in

the community. The management has spent nearly Rs.75 lakhs in the social development of its

neighbourhood in a matter of just twenty four months in a planned and systematic way. Sterlite has

contributed to health, education, employment, sports and community infrastructure of its neighbouring

villages. As a result, more and more people are reaping the benefits of the giant industry that has been

there in their neighbourhood300.

Corporate Social Responsibility (CSR)

Sterlite believes that corporate social responsibility initiatives are a way to pay back societal

debts and obligations. CSR as charity not even as responsibility, is an opportunity to change the

activities of people by the concept of “Changing lives”. It constantly endeavours to improve the quality

of Life of the communities. CSR activities are conceived to bridge gaps in society and help transform

communities around its workplace. Sterlite pays its maximum attention to uplift the quality of life of

women, children and youth in its area.

Modeling it as a corporate, Sterlite copper, besides turning and showing the way, also goes a

long way in meeting the wealth and welfare of the community around it, focusing its attention on

education, health, upliftment of women, promotion of youth programmes and community

299
Frontline, 24th January, 1997, p.49.
300
Sterlite copper: Pride and Pearl city, op.cit., p.3.
 development. Sterlite copper is enriching the quality in these thrust areas, which is the “bottom line” of

their corporate philosophy and organization that people are proud to associate with301.

Sterlite began its CSR initiatives in 1996. As time passed, it has evolved as a tripartite approach

by bringing together government resources, field expertise of Non-Governmental Organisations (NGO)s

and the vision of a growing community. It is believed that people know their problems and solutions

better than anybody else. But people lack awareness on Sterlites CSR efforts by partnering with NGOs,

government departments, academic institutions, nationalized banks and hospitals, to catalyse the

means302.

Figure 5.2

Corporate Social Responsibility (CSR) Activities of Sterlite

CSR Activities of
Sterlite

Sterlite Women Infrastructure

Empowerment Development
Livelihood
Project

Self Help Groups Education Health Namakku Name Thittam

Agriculture
NGO’s

301
Anil Aggarwal, ‘Minerals and Metals Review’, Business Today, Vol.XXV, Mumbai, 1999, p.9.
302
ARSIIL, Tuticorin, 2007-2008, p.50.
Key Initiatives

CSR activities are focused on education, health and hygiene, women empowerment, sustainable

livelihood, rural infrastructure development, and irrigation and agriculture.

Education

Transformation through education is Sterlite’s motto, and priority is given to education-related

projects in the rural areas for economically weaker students. Sterlite’s education initiatives are focused

on improving the final year school results and reducing school dropouts. It aims to achieve 100%

literacy in every community where it works. Its educational activities include providing special evening

study facilities to potential school dropout students, 100% literacy, computer education for rural

children and career orientation.

Sterlite, starting with the first evening study centre in 1997 for about 94 students today,

provides special coaching initiatives and daily tuition to 1450 students through 22 centres, extending

scholarships for economically and socially disadvantaged students for higher studies. Through this

initiative, it has reduced school dropouts and enabled these children to secure better academic results.

The success of this initiative can be gauged from the fact that a number of previous students have

completed their graduation and are now well employed. In partnership with the government, Sterlite

started Valarkalvi Thittam to provide education to adults. Sterlite has also set up two village level

computer education centres for rural children. Seventy students have currently enrolled in this course

along with the youth and the women of the villages. They avail this facility to enrich their computer
knowledge. Apart from all these, Sterlite is awarding Scholastic Excellence Award to district toppers to

improve education 303.

Health and Hygiene

Sterlite supports five Primary Health Centres in three panchayats by providing medical

equipment, maintaining emergency vehicles and augmenting infrastructure improvements.

These clinics function for six days a week and treat in an average of about 80 patients per day.

They provide free medicines, treatment and hospital referrals. Sterlite’s CSR team makes direct house

visits with the object of achieving “Polio- Free Zones” in its area of operation. During the periodic pulse

Polio programmes, the company provides logistic support to the health department and sponsors the

cost of transport304.

Sterlite’s CSR activities also focus on health camps. In co-ordination with the Tuticorin Port

Trust every year, it conducts twelve multi-speciality health camps for the coastal communities. A

medical team consisting of twelve doctors and specialists in various fields screened 325 to 500 patients

during each camp. In co-ordination with the panchayats and primary health centres, it conducts four

multi-specialty camps in two of its operational villages every year305.

Totally, 10,020 people have been benefitted so far. Sterlite also conducts an eye camp every

year in partnership with Aravind Eye Hospital. Totally fifty five patients underwent cataract surgery

during 2007-2008..

Apart from all these, Sterlite supports government health initiatives to create awareness in

HIV/AIDS/Blood Donation. It has also completed the construction of an exclusive pediatric block in the

303
Ibid.
304
Ibid., p.51.
305
Ibid.
government hospital campus at a cost of Rs.80Lakhs with 25 cots, beds and pieces of furniture for the

block. This exclusive block of the hospital for children is useful in providing improved health care for

children of Tuticorin District306.

Pediatric and cardiac care is too expensive for an average Indian family despite subsidies from

hospital, government and voluntary organizations; Considering the magnitude and significance of the

issue, Sterlite Industries in partnership with district administration performed heart surgery for 32

children in the year 2007-08. Tuticorin District Collector presented an appreciation certificate to Sterlite

for successfully implementing the free heart surgery programme307.

The block development office is supporting people living below poverty line for constructing

individual household toilet by giving a grant of Rs.21200. In addition to this Sterlite has contributed

Rs.1000 to each family and motivated them to complete the work in time. As a result of this, seventy six

families have successfully completed the construction work of toilet in villages. The members have

explained in detail about how to use the toilet and the advantages of using the toilet308.

Agricultural and Vocational Training

Sterlite has initiated agricultural development project in partnership with the Horticulture

Department in Pudukottai block. This project has been implemented in five villages for the benefit of

farmers. The project aims to achieve transfer of latest production technologies to increase productivity

in agriculture, supply of appropriate information / education / communication and capacity building

initiatives in association with the Horticulture Department309.

306
ARSIIL, Tuticorin, 2007-2008, p.36.
307
Ibid.
308
Ibid,
309
ARSIIL, Tuticorin, 2006-2007, p.40.
 Vocational training is given to unemployed rural youth to generate employability among them

through market driven vocational training and ensure 80% employability.

The following are some of the vocational training services provided by Sterlite

Computer training,

Beautician

Nursing assistance

Cell phone mechanic

Embroidery

Tailoring

Shipping and management310.

Women Empowerment Project

This project envisages social and economic empowerment of women. This project has achieved

formation of 1012 self-help groups covering 15,095 rural women from marginalized sections of society.

More than one hundred and fifty one groups have taken up profitable income generation activities.

Sterlite has paid much attention to microfinance as a strategy capable of reaching women and involving

developmental process. The microfinance grass root institutions have made great strides towards

identifying barriers to women’s access311 to financial services and developing ways to overcome these

barriers. Sterlite initiatives have helped women to have access to working capital and training. This

project has been implemented in partnership with six NGO’s. Periodic training programs which include

310
Ibid., p.43.
311
Ibid., p.48.
training in book keeping, leadership qualities and decision making have been organized for the women

groups. As a result, women have taken up income generation activities and they have substantially

helped them to increase their family income312.

Sterlite has launched “coastal livelihood project” to promote technical skills among coastal

youth in Tuticorin. A sum of Rs.15 lakh project is to enable them get employment in different fields,

involving non-government organizations.

Rural Infrastructure

Sterlite has conducted a unique program called “The model village program” to improve the

rural infrastructure. It aims to achieve the following objectives.

Health

To provide better health services in rural areas and to create polio-free zone.

Education

To achieve 100% enrollment of children in schools313.

Livelihood

To create a supplementary incomes for the rural families.

Agriculture

312
Ibid,. p.38.
313
Ibid,. p.34.
 Providing latest agricultural technologies to increase productivity

Infrastructure

Access to drinking water and to create model sanitation block

The single most important project arising out of the model village program is the “Child-friendly

village”.

Community infrastructure

Providing drinking water is a national priority. Drinking water is being supplied to Meelavittan

village during the whole year and a permanent drinking water system has been installed with bore well,

motors and pipe line to remote villages through the community infrastructure support programme. In

addition, it has taken up a joint venture project to build a overhead reservoir with a capacity of one lakh

litres in a drought prone region of Udangudi village.

Sterlite participated in the schemes introduced by Tamil Nadu Government, by constructing

rainwater harvesting structures in one hundred and fifty houses belonging to below poverty line in the

villages and by providing garbage vehicles for sanitation program314.

Figure 5.3

314
Ibid.
 Welfare Activities of Sterlite

Benefits to Employees

Occupational Health and Safety

 Sterlite has committed to achieve zero accident and creating safer work place. Their paramount

task is to enhance the safety of the employees and contract workforce.

Safety Initiatives

Aluminized suit is provided for heat protection for the people working in secondary smelter

area. Tarpaulin tying platform is provided for reducing the risk of fall from height in the heavy vehicles.

Incident reporting facility is available through Work Safe Online (WSO). A dedicated contract safety

management cell has been initiated with the objectives of bringing all contractors safely under one roof

and administer a common safety system315.

Training and Developments

Occupational safety and health care can be developed among employees through systematic

and quality training. Hence, its focus area is to ensure that employees undergo at least one

occupational health and safety refresher training in a year. Currently Sterlite concentrates on the

behavioral change among employees and contract labourers as an initiative to eliminate the accidents in

the plant.

Sterlite has full-fledged occupational health centre with experienced doctors and medical staff

from Apollo Hospitals. Online health tracking for employees was initiated in 2007-08. Its full-fledged

occupational health centre was further upgraded with new equipments. It conducted an annual

occupational health surveillance for all employees and contractors which included tests for blood,

audiometry, eye camps, chest x rays and pulmonary function tests. In addition to these, it introduced

half-yearly checkups for labourers working in hazardous locations. Besides, it conducted two HIV/AIDS

awareness sessions and allied tests for all the employees during this period.

315
ARSIIL, Tuticorin, 2007-2008, p.34.
 Given the growing problem of obesity, it measures the body mass index of all the employees

and offers a dietician’s inputs for having a balanced diet based on the nature and intensity of physical

labour316. Sterlite also has a company-wide medical insurance policy to cover all the employees and

their families, including parents.

Environmental performance of Sterlite

“To harness technology to its full potential in a safe and clean environment in the entire

business cycle and integrate quality with continuous improvements is a major goal of Sterlite”.

Sterlite is sensitive to environmental requirements, and continually strives to limit any harmful

effects of its activities. It always works towards long term goal of environmental sustainability. This

approach encourages innovation which helps to reduce cost and gives better output in terms of reduced

environmental impact which is reflected under the following heads317.

Environment and conservation

Environment conservation has been the top of the priorities of Sterlite. More initiatives have

been taken to ensure its operations which are carried out in an environmentally sound manner.

Charter on corporate responsibility for environment

The copper smelter division at Tuticorin has complied with the conditions recommended by the

Central Pollution Control Board in view of corporate responsibility for better environment.

1. Introducing seven continuous sulphur di oxide monitors two continuous dust monitors and

one continuous co-monitor.

316
Ibid., p.46.
317
Ibid.
 2. The unit has achieved zero discharge on treated waste water rain water and it will be

maintained.

3. Developed green belt around the plant and accommodation areas of 28% of the total land

available. The unit has planted around 55000 trees till date.

Air Pollution Control Measures

To reach the benchmarking level in the environmental management, the heat exchangers in old

sulphuric acid plant has been modified to improve further upon the conversion efficiency of sulphuric

acid plant. Another upgradation was in the area of improving ambient air quality by increasing the

height of anode furnace stack. Another improvement is the three-stage scrubbing system in phosphoric

acid plant which is being replaced by five stage scrubbing system. In order to meet further stringent

standards in stack emissions and to further improve the recovery of sulphur, a tail gas scrubber and old

sulphuric acid plant converter modification projects were taken up318.

Water conservation measures

Water is a precious commodity and special measures have been taken to use it optimally.

Surface water is used for all processes in the complex. The importance of water has been recognized

and greater emphasis is being laid on its economic use. Tuticorin unit has continued to treat the

effluent and recycle the treated water in the process, maintaining zero discharge. This unit is going for

one more rain water catchment pond to continue the zero discharge. This unit has commissioned two

sewage treatment plants, and the treated water is used for green belt in and around the plant area. By

the innovative approach the cooling, water system for the acid coolers has been replaced with air

cooling system as saving water is being achieved.

318
ARSIIL, Tuticorin, 2004-2005, p.24.
Solid Waste Management

Sterlite has capped the first secured land fill as per corporate responsibility for environment as

per Central Pollution Control Board (CPCB) guidelines for better improvement in solid waste. This plant

is putting up a double liner system in its construction. Technical studies are on to reduce the hazardous

waste generation by way of treatment by sodium sulphate319.

Green Belt Development

Clean and green environment is the company’s motto and Sterlite has planted 14500 trees and

every year planting trees are carried.

Bio diversity

Sterlite is located in the industrial complex in Tuticorin. In order to understand the impacts of

its activities and operations on surrounding bio-diversity, Sterlite is engaged with the highly reputed

institution of Government of India, Forest Research Institute, Dehradun to carry out bio-diversity

impact-assessment. It covers an area of ten km radius surrounding Tuticorin plant. In the first phase,

qualitative and quantitative baseline assessment has been carried out for both flora and fauna.

Waste Water Management

The facilities are supported with full-fledged effluent treatment facilities for all effluents

generated from scrubbers, sulphuric acid plants and refining processes. The entire treated water is

stored in two above ground level surge pond facilities and then recycled back into the plant on a 100%

basis. The average volume of water recycled and reused is around 17.4%. In the sphere of water

319
Ibid.
management, two projects have been executed. The first was the building of a reverse osmosis plant,

second project related to improving treated effluent. This involved setting up another reverse osmosis

plant to convert treated water from effluent treatment plant into raw water for utilization in cooling

towers320.

Energy Management

Sterlite is able to maintain the decreasing LPG consumption of Cathode. Some of key energy

conservations are

· Reduction of specific fuel consumption in Captive Power Plant (CPP)

· Reduction of steam requirement in Protection Area Plant (PAP)

· Optimization of cooling water flow in smelter

· Covering and increasing the height of the entire launder in anode furnace with premix
burner.

· Utilization of Bagasse waste as an alternative source of fuel in boiler321.

Climate Change

Climate change is a reality and that anthropogenic activities such as burning of fossil fuels

contribute to global warming. Sterlite, as a responsible company and a part of highly energy intensive

sector, completely understands its role in bringing solution to the problem of climate change. A new

project for utilization of waste gas for power generation would reduce 18,000 tonnes of green house

gases per year in the atmosphere322.

320
ARSIIL, Tuticorin, 2007-2008, p.48.
321
ARSIIL, Tuticorin, 2008-2009, p.36.
322
ARSIIL, Tuticorin, 2005-2006, p.32.
Emissions

Controlling air emissions is a continuous challenge for all smelters in the world. Due to its

proximity to residential area, there is an increased focus on the control of fugitive emissions from the

smelters-especially sulphur dioxide and fluoride. Several pollution abatement measures are in place.

These include double hood systems, water cooled goosenecks and collection hoods at all secondary

parts of furnaces for better gas capture.

A collection system for fugitives emerging during pouring from furnaces and transfer from one

furnace to another still remains a challenge as in the case of smelters worldwide. Over the past few

years, several projects have been taken up to improve the collection efficiently. Some of them are

installation of secondary hoods for conversion to capture gases arising out of charging and transfer of

hot metal into furnace.

Secondary gas scrubbing systems are used for collection and removal of fugitive gases from the

IAS smelter rotary holding furnace, the pierce smith converter and anode furnaces323.

Occupational Safety

The company’s motto is “Prevention of Accidents”. There were continuous efforts in the

implementation of various preventive measure like waste heat recovery, boiler and steam turbine

generator, safety audit and fire audit conducted by reputed agencies with the objective to identify

hazards leading to their proactive elimination. A comprehensive risk assessment study has been

conducted for the company’s entire operations. To inculcate safety awareness and culture in all related

323
ARSIIL, Tuticorin, 2007-2008, p.47.
individuals, several training programs have been conducted. As a result of the inbuilt safety standard

procedures and safety monitoring, the plant has emerged as a “Zero Accident” plant324.

Sterlite benefits to Tuticorin

Sterlite plant has been in the forefront of community development initiatives in Tuticorin

especially in the field of Education, health, infrastructure and sports.

Sterlite copper under the agencies of corporate social responsibility has reached out to 7

panchayats covering 15 villages and coastal slums, covering 12,000 below poverty line families. As many

as 1,600 economically backward students have been given free study materials. As a motivational

effort, the company has instituted “Scholastic Excellence Awards” to district toppers in X and XII in

public exams.

As part of the efforts to promote rural sports, Sterlite has acted as host for volleyball

tournament, kabadi and cricket tournament. In addition to this, sporting kit has been sponsored for boys

and girls of Tuticorin District Sub Junior, Junior and Youth Teams to play inter-district tournaments325.

The plant in Tuticorin provides direct and indirect job opportunities to approximately 4000

people. The port will be modernised to handle the increase in volume of cargo as a result of which job

opportunities will increase. Because of this plant, roadway and highway modernisation make

transportation facilities better. The products from the plant will serve the related small scale units in

the area326.

The industry will serve to improve the economic and social life style of the people. The

economy of Tamil Nadu and Tuticorin district with increased trade will be improved.

324
ARSIIL, Tuticorin, 2003-04, p.29.
325
Ibid., p.30.
326
Sterlite Anchors, op.cit., p.3
 Sterlite puts Tuticorin on the industrial map of the country and it is a prominent one. Sterlite’s

copper smelter is import substitutive in nature and will save the country’s foreign exchange to the tune

of 350 million per annum. The oil refinery project of Sterlite will also considerably reduce the country’s

dependence on imports, thus saving foreign exchange327.

Agitation against Sterlite

The commencement of trial product by Sterlite Industries Ltd., is its copper smelter in Tuticorin,

Tamil Nadu. Local people feared that effluents, solid waste and emissions from the plant will pollute the

region. A month long opposition to the plant, the biggest of its kind in the country in the private sector,

has gained strength after it became operational in October 1994 and the protest has stalled the

launching of full scale commercial production.

The anti-smelter agitation has been on from October 1994 when the then Chief Minister of

Tamil Nadu, J. Jayalalitha, laid the foundation stone for the project. The following are the reasons for

the agitation:

Tuticorin smelter violates the coastal zone regulations and Tamil Nadu industry guidelines that

no polluting factory should be located within 25km of a sensitive coastal area. The Sterlite plant is 16km

from the sensitive coast of the Gulf of Mannar.

It is a major source of toxic pollutants like arsenic oxides of sulphur and heavy metals such as

iron, bismuth, antimony and lead. According to experts appointed by the Tamil Nadu Government and

the Madras High court, the plant lacks adequate equipment to control and treat the effluents or

emissions and reduce their toxity down to permissible levels.

327
Frontline, 24th January, 1997, p.47.
 It also lacks a proper or safe slag and waste disposal facility and the plant remains accident

prone. Its core is old and reconditioned. On July 5th 1999, there was a toxic gas leak from the plant

which resulted in the hospitalization of 100 people working in it. Even before any remedial action could

be taken there was yet another blast on August 31, 1999 from which molten copper and slag at 12000c

spilled out. This resulted in the death of two workers. Again in 2000, there was an accident from

effluent discharge pipeline resulting in burn injuries to six workers and another one died328.

The company was forced to move to Tuticorin from Ratnagiri (Mahrashtra), the site originally

chosen for the plant, following protests by environmentalists. The issues raised were the same as those

being raised at Tuticorin now. The anti-Sterlite agitation spearheaded by the fisher folk in and around

Tuticorin, has now disturbed the work of people from getting a consignment of copper-ore concentrate

unloaded at Tuticorin harbour. This has stalled the starting of commercial production329.

The company’s environmental clearance is now being subjected to scrutiny by the Madras High

court following a public interest litigation petition. The petition alleged that the environmental norms

and laws have been violated when permission was granted to set up the smelter. The State Government

has constituted a three member committee of experts headed by Prof. B. Pitchamani, Department of

Chemical Engineering, Indian Institute of Technology, Delhi to review the Environmental implications of

the Plant. The other members of the committee are A.A.Khan, Deputy Director, Indian Institute of

Chemical Technology, Hyderabad and G.G.Joglekar, scientist at the National Chemical Laboratory Plant.

During its first visit to Tuticorin in early December, the committee received representations from the

members of the Anti-Sterlite movement. People hoped that the committee would submit its

“Exhaustive Report” to the State Government by Mid-January, 1997330.

328
WWW.Outlook India.Com. Business Opinion, May, 2007.,
329
Sterlite Copper Tones, Tuticorin, SIIL, 2000, p.3.
330
Controversy, The Weekly, 30th March 1997, p.20.
 Harpal Singh, the President of Sterlite claimed that the company was using the latest smelting

technology from MIM Holdings, Australia and he said that the company also used up-to-date equipment

and technology to control pollution, a major problem with traditional copper smelters. Electrostatic

precipitators and gas coolers would significantly reduce the emission of sulphur dioxide, a major

pollutant. He claimed that the gas, instead of being discharged into the atmosphere, would be used to

produce sulphuric acid at the plant331.

“The acid plant has conversions efficiency of 99.5 percent, implying very little emission into the

atmosphere” said Harpal Singh.

He said that the slag produced by the smelter would contain only 0.4-0.5 percent in granulated

form so that it did not get disintegrated in the soil, causing contamination. The slag could be used as

land-fills, in building roads and in the ship – building industry. In fact, he said, a substantial part of the

slag would be exported332.

Harpal Singh claimed that the discharge of heavy metals like lead, cadmium, arsenic and zinc in

the treated effluents would be in accordance with the “Parameters prescribed by the Tamil Nadu

Pollution Control Board (TNPCB)”. He said the discharge of heavy metals is being controlled by the

selection of raw materials that are used333.

Sterlite had earlier planned to discharge the effluents at a point 14km away from the plant using

pipelines. Harpal Singh said that the company abandoned the plan in March 1996 “because the fishing

community did not understand the details and there were people to misguide them”. He claimed that

the original plan was designed under the guidance of the National Institute of Oceanography, Goa. The

331
Frontline, 24th January, 1997, p.3.
332
India Today, 22nd December, 1997, p.27.
333
Uyar Thozil (Tamil), November, 1998, p.53.
company now plans to use the effluents for the “green belt” that it proposes to establish within the

complex. It has set up a big storage reservoir for the effluent.

The Environmental Impact Assessment (EIA) conducted by the Tata Consultancy Services (TCS)

has also kicked up a controversy. Meanwhile, the “Green Bench” of the Madras High Court, comprising

Chief Justice K.A.Swami and Justice D.Raju, has directed the TNPCB to inspect the Tuticorin plant and file

a report whether the environmental clearances are in order. The court issued the directive on

November 12, 1996 while admitting a petition filed by the National Trust for Clean Environment. The

petition alleged that the clearances had been vitiated by the fact that neither the Central Pollution

Control Board (CPCB) nor the TNPCB had made an independent assessment of the project. Smelting

plants, in fact, occupy the fourth place in the CPCB’s list of 18 most polluting industries334.

Moreover, the lack of transparency violates the standing order issued by the Union Ministry of

Environment and Forests in its notification dated January 27, 1994. The notification summary feasibility

report and the Environment Management Plan, which follows the EIA are in the public domain. In fact,

the notification stipulates that a public notice be issued in news papers inviting objections. This

stipulation, the protesters claim, has not been followed in the Sterlite case.

The co-ordinator of the Anti-Sterlite People’s Struggle Committee, M Appadurai, who is also the

district secretary of the Communist Party of India, told Frontline (a popular monthly English magazine)

that the forum planned a total agitation. The storage of treated effluent in tanks could contaminate the

ground water. Harpal Singh dismissed such fears as a “mischevious propaganda by vested interests”335.

Political Leaders Agitation Against Sterlite

334
The Hindu, 23rd March, 2000, p.25.
335
Frontline, 24th January , 1997, p.3.
 V. Gopalsamy (Vaiko) General Secretary of the Marumalarchi Dravida Munnetra Kazhagam

(MDMK) and a former member of the Rajya Sabha told a press conference in Tuticorin that Sterlite has

been emboldened by the support extended to it by the Tamil Nadu Government. He also criticized the

local MLA of the ruling Drivida Munnetra Kazhagam (DMK) for expressing himself in favour of the

project.

Gopalsamy led a protest fast organized by his party in Tuticorin. Among those who joined the

fast were Anton Gomez, convenor of the Tamil Nadu Fishermen’s Forum, and other members of the

struggle committee. V. Gopalsamy said that the Marumalarchi Drivida Munnetra Kazhagam had

planned to launch a series of protests against Sterlite336.

In August 1997, Vaiko and Anton Gomez the Samata’s Tamil Nadu general Secretary and

Convener of the National Trust for Clean Environment jointly launched an agitation in Tuticorin

demanding the permanent closure of Sterlite copper. Vaiko himself moved a writ petition in the Madras

High court demanding the plant be shut down for good. Also, National Environmental Engineering

Research Institute (NEERI) noted numerous problems with different functions of the plant such as non-

monitoring of certain emissions, venting of toxic gases, inefficient operation of the effluent treatment

plant, unsatisfactory methods of excess of dissolved solid including arsenic, sulphur, selenium, lead,

cadmium, magnesium etc. It recommended in November 1998 to shut down the plant and its

operations. As it had been reopened there have been too many agitations337.

Anton Gomez told Frontline that the agitation against Sterlite was initially confined to the fisher

folks, because they were among the most vulnerable sections. Traditionally, they have always been at

the vanguard of agitations against environmental pollution. Gomez said that in his perception the

336
Gomez, S., A Sociological Study of the Paravar Fishermen of Tamil Nadu, Tuticorin, Institute for
Research in Society and Religion, 2000, p.32.
337
WWW.Outlook India.Com, Business Opinion, May, 2007.
simmering caste conflicts divided the people of Tuticorin, which manifested itself in clashes during the

past several months, had prevented the emergence of a united protest against the Sterlite unit.

“However, things are changing” he said.

The agitation against the Sterlite unit received a fresh impetus when Rashmi Mayor, an

environmentalist who played a leading role in getting the Sterlite unit evicted from Ratanagiri, and

Thomas Kocherry, Chairperson of the National Fish Workers Forum visited Tuticorin and while

addressing a press meet Rashmi Mayor wondered how the mega project managed to get all the

clearances in just eight months.

Swaran Singh, Collector of Tuticorin District told Frontline that any attempt to unload the

consignment would have caused a “ law and order problem”. About 800 tons of copper ore were still

lying at the port. Swaran Singh had also initiated a move to constitute a monitoring committee to “

check independently” if the TNPCB conditions had been complied with by the company. The move,

however, fell flat338.

M.S.M. Shahubar Hussain, Head of the Zoology Department of VOC College, Tuticorin is also

active in the anti-Sterlite committee. He said that pollution in Tuticorin Thermal Power Station had

affected pearl fishing for which Tuticorin was famous. He said that the Sterlite plant had come up within

a radius of 25km from the proposed National Marine Park-a prohibited area for new industrial units,

according to a State Government Gazette notification, dated January 1987.

338
UNESCO Courier, August 2001, p.12.
 He said that the area, a segment of the Gulf of Mannar, had several sea mammals, corals, pearl

oysters and other fishery resources and the levels of cadmium, copper, lead and mercury in the sea of

Tuticorin was already far above the limits fixed by the World Health Organisation339.

The Indian Council of Agricultural Research, which had been running a project to produce

culture pearls recently abandoned the efforts because of the polluted sea. Several ammonia-based

industries and more than 100 other chemical units had also intensified the environmental problem in

Tuticorin.

Shahubar Hussain said that Sterlite’s entry had created awareness about the environment

among the people of Tuticorin. This he said is the real gain for the environmental movement in the

region.

In spite of its controversial beginning, copper industry is immensely beneficial to the country

and more so to the people of Tamil Nadu. Like other industries, copper industry also brings in foreign

exchange earning to the country. Like the Salt industry and Southern Petrochemical Industries

Corporation (SPIC), this industry also provides jobs to thousands of people. It helps to improve the

economic and social life of the people of this region. Due to the existence of these industries, there is

an all round development of the district and infrastructural development in particular. It also engages in

the safety measures and in the social welfare activities but not to the extent of SPIC. As all the previous

chapters deal with big industries, it is necessary to deal with small industries. So the next chapter is

devoted to deal with the Small Scale Industries.

CHAPTER VI

SMALL SCALE INDUSTRIES

339
The Hindu, 18th November, 1996. p.5.