NGT Halts TNPCB's Rs 73 Crore Compensation Directive to Chennai Petroleum
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Synopsis
The National Green Tribunal has temporarily halted Tamil Nadu Pollution Control Board's Rs 73 crore compensation notice to Chennai Petroleum Corporation Limited for the December 2023 Ennore oil spill, pending further evaluation of damages and compliance.
Key Takeaways
- NGT issued an interim stay on TNPCB's compensation notice.
- CPCL must pay or guarantee 50% of the compensation.
- Environmental assessment indicated significant oil leakage.
- CPCL has undertaken cleanup efforts in affected areas.
- Future preventive measures are recommended based on research findings.
Chennai, March 19 (NationPress) The National Green Tribunal (NGT) southern bench has granted an interim stay against the Tamil Nadu Pollution Control Board (TNPCB) directive to Chennai Petroleum Corporation Limited (CPCL) demanding Rs 73 crore in environmental compensation for the December 2023 Ennore oil spill.
The bench, including Justice Pushpa Sathyanarayana and expert member Sathyagopal Korlapatti, instructed CPCL to either remit 50 percent of the compensation or furnish a bank guarantee for the specified amount within four weeks to advance its appeal.
During the proceedings, CPCL's attorney contended that the TNPCB had determined the compensation sum prior to a comprehensive evaluation of the oil spill's impact. In light of this, the bench granted an interim stay on the TNPCB's notice and set the next hearing for June 4.
The TNPCB had originally mandated CPCL to pay Rs 73.68 crore, citing socio-economic and environmental harm stemming from the spill. The board warned of severe repercussions, including the shutdown of CPCL operations and suspension of electricity supply, should the company fail to comply.
It asserted that an environmental impact assessment of the Ennore Creek spill was conducted by IIT Madras, with a technical team reviewing the findings. The assessment indicated that 517 tonnes of oil had leaked. The environmental damage costs were calculated using a methodology devised by the Institute of Marine Environment and Resources, Vietnam. The total compensation of Rs 73.68 crore was apportioned as follows - Rs 35.43 crore for socio-economic damages and Rs 38.24 crore for environmental damage.
These funds are earmarked for restoration initiatives, preventive strategies, and ongoing environmental monitoring.
On December 4, 2023, a significant oil spill transpired at CPCL's refinery in Ennore, with approximately 10 tonnes of heavy oil leaking into the Buckingham Canal and Ennore Creek, resulting in substantial pollution in the Bay of Bengal and disrupting local livelihoods.
CPCL reported the removal of 2,20,040 litres of oil-water mixture and 663.5 tonnes of oil-contaminated soil from the affected regions. The company also cleaned more than 1,100 houses and shops that were stained by the spill.
The NGT held CPCL accountable for the spill and directed TNPCB to evaluate the damage while recommending strategies to avert future incidents. Six studies, including research by IIT Madras and other institutions, were initiated to assess the spill's effects. In September 2024, IIT Madras submitted a report proposing various preventive measures, including elevating oil storage tanks, enhancing containment systems, improving drainage infrastructure, and dredging silted canals to augment capacity and mitigate contamination risks.
Moreover, a technical team consisting of experts from TNPCB, CSIR-NEERI, the Central Pollution Control Board, Anna University, and the Indian Coast Guard scrutinized the findings. The team estimated that over 400 kilolitres of oil had dispersed and found that bio-dispersants from the National Institute of Oceanography (NIO) in Goa significantly aided in ecosystem recovery. They also advocated for optimizing the bioremediation process and conducting long-term studies to assess its effectiveness.
