CPCL alleges inaccuracies in environmental damage report on Ennore oil spill, disputes ₹73 crore penalty

CPCL refutes IIT-M report on oil spill during Cyclone Michaung, contests environmental compensation proposed by TNPCB.

The Chennai Petroleum Corporation Limited (CPCL) has refuted the findings of the IIT Madras (IIT-M) report on the environmental damage caused by an oil spill from the refinery during Cyclone Michaung in December 2023.

The CPCL, in its response to a show-cause notice issued by the Tamil Nadu Pollution Control Board (TNPCB), argued that the IIT-M report’s methodology was flawed and that its conclusions on the quantity of the oil spill was “abnormally high.”

The report by IIT-M, which was submitted as part of a case on the Ennore oil spill taken up by the southern bench of the National Green Tribunal, had been used by the TNPCB to propose an environmental compensation of approximately ₹73.7 crore against CPCL.

The report estimated that 517 tonnes of oil was spilled from the refinery. The company, however, has contested the findings, citing discrepancies in source identification and spill volume estimation, claiming that the methodology adopted by IIT-M was not scientific.

The CPCL stated that the flooding in the Manali industrial area, exacerbated by Cyclone Michaung and the release of surplus water from reservoirs, was a force majeure event that impacted numerous industries.

During the previous hearing on January 24, CPCL’s counsel highlighted significant differences in oil quantity estimation and spill source identification between the IIT-M report and other studies conducted by various agencies. The counsel said that the company has engaged two oceanography experts to conduct a more accurate analysis and intends to submit a detailed report based on their findings to the bench.

The next hearing of the matter has been posted on February 25.