The allotment of land for the proposed expansion of Vedanta Group's Sterlite copper plant in Tuticorin was on Tuesday cancelled "in larger public interest" by the State Industries Promotion Corporation of Tamil Nadu Ltd (SIPCOT), an official release said.
The move comes a day after the Tamil Nadu government ordered the state Pollution Control Board to seal and "permanently" close the original Sterlite plant following last week's protests over pollution concerns, during which 13 people were killed in police firing and dozens injured.
"As the allotment of land for the proposed expansion has been made by SIPCOT, in larger public interest, the land allotment made by SIPCOT for proposed expansion of copper smelter plant (Phase-2) by Vedanta Ltd is hereby cancelled," SIPCOT said in its communication to the Vedanta Group.
"The land price collected for the said land allotment will be refunded as per the norms of SIPCOT," it said.
There have been a series of agitations against the establishment of a copper plant at the SIPCOT industrial complex in Tuticorin, about 600km from Chennai, expressing concerns about the pollution caused, it added.
An official release here said, "The cancellation of allotment of 342.22 acres of land has been made in larger public interest and this has been communicated to the company."
Chief Minister K Palaniswami had on Monday said the state government had issued the directive to seal and 'permanently' close the copper unit, in deference to the 'sentiments' of the people.
"In deference to the opinion and sentiments of the general public, it was decided to close down the Sterlite plant and a government order has been issued," he had said.
Vedanta Limited termed the closure "unfortunate" and said it would decide the future course of action after studying the development.
The Madras High Court had on May 23 stayed the expansion of Vedanta's copper smelter plant in Tuticorin district on a petition filed by environmental activist Fathima Babu.
The petitioner submitted that Vedanta should be restrained from carrying out activities in the lands on which the proposed copper smelter-unit II was being constructed.
The court had also directed the Centre to submit within four months a report after holding a public hearing in the district to invite public opinion on the plan for expansion.
The locals were protesting for the closure of the factory for 99 days.
Protesters turned violent on May 22, the 100th day of their stir, and 13 people were killed in police action against them.
Investigation handed over to CB-CID
State DGP T.K. Rajendran on Tuesday transferred the investigation of the firing incidents to the Crime Branch-Crime Investigation Department (CB-CID) of the state police. The police have faced severe criticism for opening fire. The government has also been accused of trying to coerce families of dead protesters to accept their bodies in an attempt to derail possible inquiries.