On 20th December, members of the Indian National Trade Union Congress (INTUC) staged a protest demanding immediate action from the government to revive local industries and provide relief from the widespread joblessness in Thoothukudi, Tamil Nadu. Notably, Thoothukudi was once a thriving industrial hub. However, following the closure of key industries, including the Sterlite Copper Plant, the region has been grappling with a severe unemployment crisis.
When the Sterlite Plant was shut down following environmental concerns and violent protests, more than 1,500 workers were displaced. The closure indirectly impacted the livelihoods of around 40,000 individuals. Following the Sterlite shutdown, several other industries, such as textile mills, thermal power plants, Food Corporation of India warehouses, salt pans, and other small- and large-scale businesses, were shut down in the region. Many families were forced to leave the district in search of better opportunities so that they could have a sustainable livelihood.
Impact on the local economy
Every sector in the region has been affected by the downfall of the industrial hub. Truck owners, who previously relied on transporting materials for Sterlite, were forced to sell their vehicles as they were unable to pay their loans. Around a million daily wage workers have been left unemployed. Many businesses in the region that relied on industrial demand have now been forced to shut their shutters.
General Secretary of INTUC, P. Kathirvel, stated that factors such as the automation of Thoothukudi port, modernisation of the traditional spinning mills, and urban expansion have further deepened the economic challenges in the area.
Calls to reopen Sterlite
Interestingly, INTUC has highlighted that if the Sterlite Copper Plant reopens in the area, it could create jobs for around 3,000 truck operators, 4,000 daily wage workers per shift, and hundreds of port workers. Furthermore, around 400 downstream industries that relied on Sterlite could be restarted. INTUC General Secretary P Kathirvel said that many truck owners were forced to sell their trucks for being unable to repay the loans following the closure of the plant.
The protesters emphasised that the plant played a crucial role in generating around Rs 5,000 crore in annual revenue for the state and union governments. It used to contribute 40% to the nation’s copper production.
Government urged to act
The Sterlite Copper Plant was closed down following sustained opposition citing environmental concerns. However, many locals now believe that the decision was not justifiable, as it was influenced by external pressures. INTUC has accused the government of neglecting its responsibility to revive the local economy. Kathirvel said, “The Sterlite plant’s closure has crippled Thoothukudi’s economy, and the government must prioritise its reopening to restore livelihoods and economic stability.”
With the unemployment crisis worsening in the region, the demand to reconsider industrial shutdowns has resonated strongly among local communities. It has marked a substantial shift in public sentiment towards prioritising economic revival over the ideological resistance that played a vital role during the protests against the Sterlite Copper Plant.
The closure of the plant
The locals and environmental activists had been protesting against the plant for a long. In March 2018 massive protests started against the plant. The Police had opened fire at the protesters outside the plant leading to the death of 13 people. The protesters had claimed the plant was causing pollution in the area. Following the closure, Vedanta moved to National Green Tribunal (NGT) to get permission to reopen the plant. NGT granted permission, but the Tamil Nadu government moved to Supreme Court. The apex court stayed the NGT order and allowed Vedanta to approach High Court for reopening of the plant. The High Court refused to allow Vedanta to reopen the plant, after which the company moved to Supreme Court, where the case is pending.
Notably, in 2021, Vedanta Group got permission to reopen the plant to provide medical oxygen during the Covid pandemic. TN government had appealed to the apex court that the plant should provide oxygen only to the state but the court rejected it. It operated for three months and then the premises were again shut once the second wave was subsidised. In December 2021, there were reports that the locals had claimed they were cheated in the name of the protests and wanted it to reopen.