NGT directs Vedanta to pay ₹25cr for expanding plant without clearance

THE AMOUNT OF ₹25 CRORE WILL BE UTILISED FOR RESTORATION OF THE ENVIRONMENT, THE TRIBUNAL SAID IN ITS ORDER

BHUBANESWAR: The National Green Tribunal (NGT) has directed the Anil Agarwalled Vedanta Ltd to pay ₹25 crore for expanding the capacity of its alumina refinery and captive power plant in the Lanjigarh area of Kalahandi district without obtaining prior environmental clearance from the ministry of environment, forests and climate change.

A special bench of the National Green Tribunal headed by Adarsh Kumar Goel, while disposing of an appeal filed by environment activist Prafulla Samantra against the environmental clearance granted to Vedanta in November 2015 for expansion of its alumina refinery and captive power plant in Lanjigarh, asked the company to pay ₹25 crore to the Odisha State Pollution Control Board within a month.

The amount will be utilised for restoration of the environment.

“In the present case, the prosecution has been initiated for illegal expansion. Liability for compensation on the polluter pays principle is assessed at ₹25 crore having regard to the clear violation and financial capacity of the unit to be used for the restoration of the environment in terms of the environment plan to be prepared and executed as per the direction in later part of this order,” the tribunal’s order said.

The bench held that under the EIA Notification dated 14.09.2006, as prior EC is a mandatory, violation of it is actionable by way of prosecution as well as invoking ‘polluter pays’ principle.

Responding to the order, the company’s spokesperson Sonal Choithani said: “This order pertains to an old issue dating back to 2008 and we are examining the same.”

“In the last decade and a half, Vedanta has rapidly accelerated its ESG performance guided by our mission to be a net-zero company by 2050...” Choithani added.

Vedanta was granted environmental clearance by the ministry of environment, forests and climate change in September 2004 for its one million tonne per annum alumina refinery with a 75 mega watt captive power plant in Lanjigarh.

The company, however, started the expansion work of the plant from one million tonne per annum to four million tonne per annum (later six million tonne) and captive power plant from 75MW to 285MW at an expenditure of about Rs 4,000 crore without obtaining environmental clearance.

Activist Samantra had moved the National Green Tribunal against it in 2016.

The company during the hearing argued that it has invested ₹50,000 crore and undertaken all mitigation measures for the protection of the environment while complying with all statutory requirements.