Copper End-Users Urges Tamil Nadu to Restart Tuticorin Plant
In May 2018, the state government ordered to permanently close the plant because of air pollution measures.
On 7 March 2021, end-user of sterlite copper in Tamil Nadu urges government to find a solution to restart tuticorin plant in the state. The industry users aid that the closure of the plant has caused supply disruptions, leading to a rise in imports prices and increased cost of production. In May 2018, the state government ordered to permanently close the plant because of air pollution measures.
The industry bodies, whose members constitute SME and MSME units, told PTI that the closure of the plant has caused supply disruptions, leading to a rise in imports and increased cost of production. Anil Saboo, President of the Indian Electrical & Electronics Manufacturers' Association (IEEMA), said copper is a major component used by the players of this industry and the plant used to cater around 35-40 % of the country's total copper requirement.
"The electrical equipment industry is suffering a lot because of it. Prices of copper have raised by 30-40% in the last few months and fixed-rate contracts of electrical equipment makers with government or private are being affected. It has affected their cash flow also and their profitable orders are converting into losses," he said.
As per the industry data, India's refined copper production was about 8,48,000 tonne in 2017-18, while the exports stood over 4,16,000 tonne and imports were at 2,15,000 tonnes.
The prices of copper are ₹735 per kg, almost 50 per cent price hike. Earlier, the manufacturing costs of motors, copper would contribute around less than 20 per cent of the total cost. Now, due to recent price hikes, it contributes to about 33 per cent of the total cost.
