CHENNAI: The Tamil Nadu Pollution Control Board (TNPCB) has directed the Chennai Petroleum Corporation Limited (CPCL) to remit Rs 73.68 crore as socio-economic damage cost and environmental damage cost for an oil spill that occurred in December 2023 and warned of stringent action if the oil company fails to pay.
In a letter to the CPCL sent a few days ago, the board explained that IIT-Madras carried out a quantification of oil spill and environmental impact assessment in Ennore Creek, and the report was assessed by a technical team.
The technical team computed 517 tonnes of oil spilled and calculated the environmental damage cost based on a methodology developed by the Institute of Marine Environment and Resources in Vietnam. The team fixed Rs 73.68 crore to be collected from the CPCL, of which Rs 35.43 crore will be towards socio-economic damages and Rs 38.24 crore towards environmental damages.
Pointing out that the southern bench of the National Green Tribunal (NGT) had directed the TNPCB to take further action in October 2024, the letter recalled that a show-cause notice was issued to the CPCL in November.
However, the CPCL replied to the show-cause notice in December and raised its objections to the report of IIT-Madras "since the quantity arrived by the IIT-M report is abnormally high and hence it is not acceptable."
The recent letter added that since the CPCL has not yet submitted their detailed report on oil quantity estimation and assessment done through experts in oceanography and as per the NGT order dated January 24, 2025, the board has decided to consider the technical team's recommendation and recover Rs 73.68 crore. It directed the CPCL to pay the amount in the form of a demand draft within 15 days.
"Failure to comply with the above direction will attract stringent action against the unit as per the provisions of Section 5 (closure and stoppage of electricity) and Section 15 (penalty provision) of Environment (Protection) Act, 1986, as amended," the board warned.