InvestorQ : How significant is the setting up of the record Kutch Copper factory by Adani, especially in the light of what happened at Sterlite in Tamil Nadu?
vaishnavi mhatre made post

How significant is the setting up of the record Kutch Copper factory by Adani, especially in the light of what happened at Sterlite in Tamil Nadu?

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vidhya Laxmi answered.
2 months ago
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Way down in South India, Sterlite Copper is planning to finally throw in the towel and exit the copper smelting business in India. This was after the Thoothukudi copper plant got caught up in a string of environmental problems, including a major incident of police firing in which 13 persons were killed and over 100 persons were injured. The objections were over the environmental pollution caused by the Sterlite Copper plant and the potential to damage the environment if the capacity was allowed to double to 8 lakh tonnes per annum.

Much farther north in the desert region of Kutch, Adani is chalking out much bigger and more aggressive plans for copper with a 1 million tonnes per annum (MTPA) capacity of which 0.50 MTPA will be executed in Phase 1. For the Phase 1, Adani has already got financial closure with a consortium led by SBI lending the project Rs6,071 crore. It will be a 1 million tonne per annum (MTPA) copper greenfield refinery located in Mundra in the Kutch region of Gujarat. Kutch Copper is a subsidiary of Adani Enterprises.

Ironically, it was the same copper smelting business that led to the closure of the Vedanta facility in Thoothukudi in Tamil Nadu and the capacity is still smaller compared to the Kutch Copper Company belonging to the Adanis. The government of Tamil Nadu had intervened and shut down the Sterlite Copper plant in May 2018 and has remained shut ever since. Even Supreme Court refused to give permission to resume operations at the premises. This converted India from a net copper exporter to a net copper importer.

Adani’s interest in copper is not surprising if you look at the potential of copper in India and in most parts of the world. When you talk of green energy, everything from renewable power plants to electric vehicles need a huge quantities of copper due to its special qualities. Kutch Copper believes the 1 MTPA capacity will be sufficient to boost the plans of the Indian government to engineer a shift towards renewable energy and for greener and cleaner electrical vehicles. Copper is at the core of both these shifts and that is the fit.

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