Chennai: State-owned Chennai Petroleum Corporation Limited (CPCL) has secured an interim stay from the National Green Tribunal (NGT) on the Rs. 6.24 crore compensation order issued by the Tamil Nadu Pollution Control Board (TNPCB). The penalty was imposed in connection with non-compliance of emission norms and environmental damage, including the December 2023 Ennore oil spill.
CPCL, formerly known as Madras Refineries Limited, is a subsidiary of Indian Oil Corporation Limited which is under the ownership of Ministry of Petroleum and Natural Gas of the Government of India. It is headquartered in Chennai, India.
According to CPCL’s latest exchange filing, the NGT granted the stay on the condition that the company deposits 50% of the compensation amount – Rs. 3.12 crore – as a bank guarantee in favour of TNPCB within six weeks. Failing to comply with this condition would result in automatic vacation of the stay without further notice.
The NGT’s directive responds to TNPCB’s order dated February 24, 2025, demanding Rs. 6.24 crore from CPCL. This amount, TNPCB stated in its earlier notice, is to be used for converting roads in the Manali Industrial area into concrete roads, aiming to reduce dust pollution caused by vehicular movement. The compensation covers a period of emission non-compliance from April 1, 2019, to December 26, 2020.
CPCL clarified that the interim order will have no impact on its operations or ongoing activities, and the financial implication is currently limited to the Rs. 6.24 crore in question, subject to the outcome of the appeal pending before the NGT.
Additionally, CPCL is reviewing the TNPCB order legally and stated that appropriate action will be taken following legal examination.
The next hearing on the matter is scheduled for April 30, 2025
