CHENNAI: Temporary relief to the Chennai Petroleum Corporation Limited (CPCL) as the southern bench of National Green Tribunal has issued an interim stay against a notice served to the oil company by the Tamil Nadu Pollution Control Board (TNPCB) seeking Rs 73 crore against damages due to the oil spill at Ennore.
Hearing an appeal petition filed by the CPCL against the order, the bench comprising judicial member Justice Pushpa Sathyanarayana and expert member Satyagopal Korlapati, on Wednesday, directed the CPCL to pay 50% of the environmental damage cost (around Rs 19 crore), or provide bank guarantee for the amount within 4 weeks to allow the appeal. Total environmental damage cost was fixed at Rs 38.24 crore.
During the hearing, the CPCL counsel alleged that the environmental compensation was arrived at before the extent of the oil spill was quantified. Based on the request, the bench issued an interim stay to the TNPCB notice and posted the next hearing on June 4.
It may be noted that the TNPCB had directed the oil company to remit Rs 73.68 crore as socioeconomic damage cost and environmental damage cost due to the oil spill in December 2023, and warned of stringent action if the company fails to pay. In a letter to the CPCL, the board had explained that IIT-Madras had carried out quantification of oil spill and environmental impact assessment in Ennore Creek, which was assessed by a technical team.
The technical team computed 517 tonnes of oil had spilled, and calculated the environmental damage cost based on a methodology developed by the Institute of Marine Environment and Resource in Vietnam. The team fixed Rs 73.68 crore to be collected from CPCL, of which Rs 35.43 crore will be towards socioeconomic damage cost and Rs 38.24 crore towards environmental damage cost.
The board had also warned the CPCL of closure and stoppage of electricity if the costs were not paid on time.