Vedanta Ltd.'s land allotment for the expansion of its copper smelter in Tuticorin, India, was canceled by the state industries promotion corporation of Tamil Nadu, or SIPCOT.
The cancellation comes a day after India's Tamil Nadu state ordered the permanent closure of the Tuticorin smelter following violent protests last week that killed 13 people.
SIPCOT will reimburse Vedanta for the 342.22 acres of land, according to a May 29 release.
Bloomberg News reported the same day that about half of the country's copper output will take a hit from the government action, leading to higher import demand for the red metal. The smelter has an annual capacity of 400,000 tonnes.
Vedanta said it will review the order before making a decision, according to the report.
The company suspended output from the smelter in March for maintenance but failed to restart operations due to protests.
