The Supreme Court ordered Sterlite Industries, a subsidiary of mining giant Vedanta, to pay Rs.100 crore as compensation for environmental damage around its Tuticorin-based copper smelting unit in Tamil Nadu.
Although the SC set aside a Madras high court order shutting down the factory, the fine can act as a deterrent as it upholds the polluter pays principle. The SC did not uphold closure of the plant on the ground that public interest would be hurt as the unit makes a substantial contribution to India’s copper production and employs 1,300 persons, who will be affected by a harsh order.
Sterlite could be relieved that the shutdown order was negated but the SC did not prevent state authorities from taking action against the company’s environmental lapses with closure not ruled out as a punitive measure.
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