The Tamil Nadu government has ordered permanent shutdown of Vedanta Resources' Sterlite plant at Tuticorin on Monday.
The order was issued after protests demanding the closure of the
copper smelter run by the London-listed company on environmental grounds.
Terming the closure of the plant an "unfortunate development", Vedanta said it would study the situation and decide on a future course of action.
Vedanta Resources' stock was down about 12% at 1755 IST on the London Stock Exchange.
HSBC said the closure could negatively impact Vedanta's EBITDA for FY19 by about 4%, and its fair value by about 6%. The copper smelter contributed about 5% to Vedanta's consolidated EBITDA for FY18, which amounts to Rs 1,370 crore.
The smelter, which has a carrying value of Rs 2,130 crore, accounts for about 46% of India's copper smelter capacity and about 2% of global copper capacity.
Also Read: Under-fire Sterlite responds to violent protests in Tuticorin
Residents and environmental activists say emissions from the plant, India's second biggest, are polluting the air and water, affecting people's health.
Resident have been demanding the closure of the plant, said O. Panneerselvam, the
deputy chief minister of
Tamil Nadu.
"The government will
take all steps to permanently
shut down the plant," he told reporters.
Last week, 13 were killed after police opened fire on protesters demanding that the
smelter in the port city of Thoothukudi be
shut down.
About 102 protesters were also injured in the clashes, while 19 sustained serious injuries. About 98 vehicles, including 20 cars were gutted, and the total loss of property is estimated at Rs 1.27 crore.
This is a developing story and will be updated.
Read our extensive coverage on Sterlite Tuticorin protests here.(Edited by : Niral Sharma)
First Published: May 28, 2018 5:29 PM IST