(Adds comments from Vedanta, background, shares)
April 11 (Reuters) - Vedanta Resources Plc VED.L said on Wednesday its plans for capacity expansion at the Thootukudi copper smelting plant in southern India were on track, a day after its application to renew operations was rejected by the state pollution regulator.
Billionaire Anil Agarwal-controlled Vedanta said on Tuesday its application for renewal of consent to operate the plant, one of India's biggest, in the state of Tamil Nadu (NS:TNNP), was rejected by the state pollution control board. in Thootukudi have been protesting against the proposed expansion of the smelter, thronging the streets and shutting shops to press their demand for closure of the plant.
Vedanta says the protests are based on "false allegations" and it has been providing "regular information through various media on the truth". The company plans to double capacity at the smelter to 800,000 tonnes per year.
The smelter, run by Vedanta's Sterlite Copper unit, is controlled by Vedanta Ltd VDAN.NS , a majority-owned subsidiary of London-listed Vedanta Resources.
The application was rejected for want of more clarifications on periodical furnishing of data and on implementing some guidelines, which Sterlite is already working on, a Vedanta spokeswoman said in an emailed statement to Reuters.
The company said it will work on the recommendations to ensure that it was compliant and was planning to take appropriate legal recourse.
The unit is currently closed as part of a 15-day scheduled maintenance, which would likely be extended, the company said on Tuesday. and environmentalists say Vedanta's smelter is a major source of pollution and a risk to fisheries.
Several cases have been filed against Sterlite since the plant started in 1996. In a different case, India's top court in 2013 fined the company about $18 million for breaking environmental laws at the smelter.
The smelter was shut for more than two months in 2013 https://in.reuters.com/article/sterlite-copper-smelter-case-latest/sterlite-copper-smelter-stays-shut-court-case-continues-idINDEE94D08N20130514 by an Indian environmental court after complaints from residents over emissions, forcing India to ramp up imports of copper.
India's consumption of copper has been rising consistently over the last few years. At current demand growth of 7-8 percent per year, India may turn into a net importer of copper by the year ended March 2020 if no new plant is commissioned, consultancy firm ICRA (NS:ICRA) Ltd said in a report last week.
Cable makers such as Finolex Cables Ltd FNXC.NS and Precision Wires India Ltd PRWR.NS have traditionally bought copper from the two biggest producers, Vedanta's Sterlite and Aditya Birla Group's Hindalco Industries Ltd HALC.NS .
Vedanta Resources shares were up 3.7 percent, while Vedanta Ltd shares were up 3.8 percent after the company also reported zinc, aluminium, iron ore and copper production that beat estimates by at least two analysts.