Rs 18.35-cr fine may delay HPCL refinery expansion

Visakhapatnam: The recent adverse judgement passed by the National Green Tribunal (NGT) may further delay the commissioning of the project to expand capacity of HPCL Visakh Refinery from 8.33 million tonne per annum to 15 mtpa at an estimated cost of nearly Rs 27,000 crore.

The expansion project is in an advanced stage of completion and the work got delayed due to continuation of Covid-19 pandemic for a long spell.

In response to a complaint lodged by Visakha Pawan Praja Karmika Sangham, NGT south zone recently directed the HPCL authorities to pay a penalty of Rs 18.35 crore for failing to comply with environmental norms. The complaint was lodged for failure to take remedial measures and maintaining 33 per cent of area as green belt as per the decision of the Ministry of Environment, Forests and Climate Change (MOEF&CC) and the recommendations of the Joint Committee set up after study by an experts committee from the Indian Institute of Science, Bangalore. The complaint mainly expressed concern over a fire accident that occurred in the Crude Distillery Unit-3 of Visakh Refinery on May 25, 2021.

The tribunal took strong exception to regular complaints from the residents living in the vicinity on breathlessness, nausea, lung and heart ailments and dermatological infections due to frequent leakage of pungent smell from the refinery.

Ever since there was a vapour cloud explosion in 1997 killing 56 people, there is no let-up in accidents at the refinery. "The management also stage-managed a public hearing and got environmental clearance for expanding capacity to 15 million tonne despite strong objections from the local residents and opinion leaders," CITU State president Ch Narsinga Rao told Bizz Buzz.

Jana Sena corporator Peethala Murthy Yadav said pending 100 per cent compliance of environmental norms and the directive of NGT, HPCL should not be permitted to commission the expansion project.

NGT in its order directed HPCL to take all the required initiatives and comply with the observations of the Joint Committee, IISC-Bangalore and enquiry report within a period of six months.

"APPCB is to monitor the same and it is not debarred from taking any action against HPCL for any fresh violation under the Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and Control of Pollution) Act, 1981 and also initiate appropriate action against the erring officials as per the statutes. HPCL is directed to deposit the environmental compensation assessed at Rs 8,35,20,000 forthwith."

NGT also directed HPCL to deposit a further sum of Rs10 crore for its wilful negligence being a PSU which can be spent on restoration of environment and public health in the district of Vizag. Such deposit to be made within two months from the date of judgement to the Central Pollution Control Board (CPCB), which will draw a plan to that effect.

The Joint Committee to ensure the regular monitoring in implementing the plan. An independent compliance report may be filed by the Joint Committee after inspection as to the status of the compliance by the HPCL after six months i.e. by May 15, 2023, the NGT ruled its order. Social activist and former IAS officer E A S Sarma hoped that HPCL would abide by the NGT's order and the environmental laws and guidelines while operating its refinery.