London-listed Vedanta Resources PLC is preparing a legal action against India's Tamil Nadu state following the closure of the company's Tuticorin copper smelter, but it will hold back until tensions over protest-related deaths ease, Reuters reported May 29, citing two anonymous sources.
The state ordered the permanent closure of the site after recent violent protests that killed 13 people. The government also revoked the land allotment for the Tuticorin expansion project.
Vedanta could file a writ petition challenging the government's move in the Madras High Court or the Supreme Court in New Delhi, according to the report.
"Vedanta is confident that it has a strong case legally. It has not violated any law," one of the sources said.
Demonstrators last week took to the streets to express environmental concerns against the company's expansion plans for Tuticorin.
The company's Vedanta Ltd. unit had earlier denied allegations it violated any rules, and reiterated its plans to move ahead with the planned expansion to double Tuticorin's capacity to 800,000 tonnes per year.
"We've closed the plant based on various violations raised by the pollution control board. They will of course say that they have not violated any rule," said D. Jayakumar, a senior Tamil Nadu minister.
Jayakumar added that the move was mainly in response to the demands of residents of Thoothukudi city, and the state government would defend its action in court.
A Vedanta spokesperson did not respond to the newswire's requests for comment.
