When Livelihoods Shut Down Overnight

Every morning in Thoothukudi, R. Raja stands behind a modest tea stall, stirring and passing cups of tea to customers. He was employed as an engineer in one of the biggest industrial facilities in the area a few years back. He put forth a lot of hard work and provided his family with a steady income and a secure future. However, his world abruptly turned when the Sterlite Copper plant shut down in 2018. Raja now works in the tea stall for survival. His story mirrors the reality of thousands across the region, who too were compelled to take up odd jobs to survive.

The Sterlite Copper plant in Thoothukudi was shut down seven years ago. On paper, it seems to have been a long time ago, but for the people here, the void is still very present.

The plant provided engineers with a way to build their future through its operations. Contractors, truck drivers, and other small businesses were all supported by its vibrant economy. A whole ecosystem of livelihoods went silent alongside the plant. Families were left to struggle and rebuild their lives in an economy that just lost its anchor.

Before its closure, the plant supported 4,000 direct and 20,000 indirect jobs across sectors. All the opportunities vanished in a day as the plant’s gates shut down. The impact has been far-reaching since then. The transport sector collapsed under the weight of uncertainty. More than 600 lorry owners have now been forced to become drivers themselves. Many people have fallen deep into debt and financial instability due to lost livelihoods.

People have slowly started to recognize the need for revival, and the demand to reopen the plant is gaining momentum. Individuals who previously protested against the plant now claim that most of the former employees of the Sterlite plant are still without any stable means of livelihood. Their problems have become a growing concern. The issues that continue to affect the locals reflect the depth of the impact made on their livelihoods since the closure of the plant.

The closure had consequences beyond households in Thoothukudi. It resonates throughout Tamil Nadu and the country. For local residents, it meant the end of their primary source of income. The region lost its economic anchor. The facility alone accounted for more than 3% of Tamil Nadu's GDP and 36% of India's total copper output.

Today, the vacuum is reflected in statistics as well, as India now imports over 40% of its copper needs. This is indeed a concerning shift for a country that was one of the top five exporters of copper cathodes in 2017-2018. At a time when global copper demand is projected to surge by more than 70% by 2050, this transition is troubling. In the gap created by India’s declining exports, nations like Pakistan have begun to step into the global positioning.

India holds 163.9 million tonnes of copper reserves, yet only 20% have been explored. In a decade defined by growing demand for electric vehicles, renewable energy, semiconductors, and power-grid expansion, copper is a strategic capital. And India is slowly losing ground in a race it cannot afford to lose.

The proposal for a green restart of the Sterlite Copper plant holds strategic significance now more than ever. Because the plant was shut due to certain environmental concerns, a scientifically monitored reopening is the only responsible way forward. The proposed restart transforms the plant into a hybrid copper facility rooted in sustainability. 70% of its output will continue to come from primary smelting. The remaining 30% will be produced through recycling of copper scrap and e-waste. This approach maintains its existing capacity of 4.38 lakh tonnes per annum while reducing environmental strain.

Even more significantly, the new model turns the plant from a water consumer into a net water contributor. Desalinated seawater usage will rise from 40% to nearly 80%, and the surplus desalinated water will be supplied to nearby villages for drinking.

For the people of Thoothukudi, the reopening of the Sterlite Copper plant will be the return of their livelihoods and a life rebuilt with dignity. For Tamil Nadu, it will restore a crucial economic engine. And for India, it will reclaim strategic dominance at a period when the global stakes for copper are higher.

The green restart is a call for revival on human grounds. It supports economic balance and sustainability. It ultimately aims to serve and uplift people and offers a chance to individuals like Raja to rebuild their lives with the dignity they deserve.

The author, Kriti Mehta, is a senior broadcast journalist with over a decade long experience covering national and international affairs.