NGT blocks 73 crore compensation for CPCL in Tamil Nadu

Chennai: The National Green Tribunal (NGT) has put a hold on a decision to fine Chennai Petroleum Corporation Limited (CPCL) 73 crores for an oil spill. This spill occurred during Cyclone Michaung in 2023 and was said to have caused economic and environmental harm. On Thursday, the southern bench of the NGT issued an interim order after CPCL appealed against the Tamil Nadu Pollution Control Board's (TNPCB) compensation ruling. Justice Pushpa Sathyanarayana and expert member Satyagopal Korlapati were part of the bench. They ordered CPCL to deposit a bank guarantee of 19 crores within four weeks. During the hearing, senior advocate Abdul Saleem argued that the compensation amount was not justified. He stated that the measurement of the oil spill was flawed, and the expert opinions regarding the IIT report have not yet been submitted to the tribunal. CPCL explained that the heavy rain from the cyclone in December 2023 caused flooding in the Manali industrial area. This flooding, due to releasing excess water from a reservoir, led to surface oil mixing in the water from various industries, including CPCL. The NGT has also taken steps to address the situation with various authorities. Reports from TNPCB, NIO, NCCR, and IIT, analyzing the oil leak's effects, have been presented to the tribunal. However, CPCL claimed that the IIT's assessment was exaggerated and based on incorrect methods, which TNPCB relied on to impose the compensation. The tribunal has postponed the hearing to allow CPCL to submit its objections.