NGT Stays TNPCB’S Rs 73 Crore Compensation Notice To Chennai Petroleum

(MENAFN- IANS) Chennai, March 19 (IANS) The National Green Tribunal's (NGT) southern bench on Wednesday issued an interim stay against the Tamil Nadu Pollution Control Board (TNPCB) notice to the Chennai petroleum Corporation Limited (CPCL) to seek Rs 73 crore in environmental compensation for the December 2023 Ennore oil spill.

The bench, comprising Justice Pushpa Sathyanarayana and expert member Sathyagopal Korlapatti, directed the CPCL to either pay 50 per cent of the compensation or provide a bank guarantee for the amount within four weeks to proceed with its appeal.

During the hearing, CPCL's counsel argued that the TNPCB had calculated the compensation amount before a full assessment of the oil spill's extent. Taking this into account, the bench issued an interim stay on the TNPCB's notice and scheduled the next hearing for June 4.

The TNPCB had initially ordered CPCL to pay Rs 73.68 crore, citing socio-economic and environmental damages caused by the spill. The board warned of stringent action, including the closure of CPCL operations and electricity supply suspension, if the company failed to comply.

It contended that the IIT Madras had conducted an environmental impact assessment of the Ennore Creek spill, and a technical team reviewed its findings. The assessment estimated that 517 tonnes of oil had leaked. The environmental damage cost was calculated based on a methodology developed by the Institute of Marine Environment and Resources, Vietnam. The total compensation of Rs 73.68 crore was divided as follows - Rs 35.43 crore for socio-economic damages and Rs 38.24 crore for environmental damage.

These funds would be used for restoration efforts, preventive measures, and long-term environmental monitoring.

On December 4, 2023, a major oil spill occurred at CPCL's refinery in Ennore and around 10 tonnes of heavy oil leaked into the Buckingham Canal and Ennore Creek, causing significant pollution in the Bay of Bengal and disrupting local livelihoods.

CPCL reported that it had removed 2,20,040 litres of oil-water mixture and 663.5 tonnes of oil-laden soil from the affected areas. The company also cleaned over 1,100 houses and shops that had been stained by the spill.

The NGT held CPCL responsible for the spill and directed TNPCB to assess the damage while recommending measures to prevent future incidents. Six studies, including research by IIT Madras and other institutions, were initiated to evaluate the spill's impact. In September 2024, IIT Madras submitted a report recommending several preventive measures, elevating oil storage tanks, enhancing containment systems, improving drainage infrastructure, and dredging silted canals to increase capacity and reduce contamination risks.

Additionally, a technical team comprising experts from the TNPCB, CSIR-NEERI, the Central Pollution Control Board, Anna University, and the Indian Coast Guard reviewed 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 had significantly aided ecosystem recovery. They also recommended optimising the bioremediation process and conducting long-term research to evaluate its effectiveness.

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