A special bench of the National Green Tribunal has directed Hindalco Industries Limited and Raipur Energen Limited (REL) to pay ₹10 crore interim compensation for violating environmental clearance (EC) norms on the functioning of the open-cast mine in Sambalpur district.
The coal mine falls in an area designated as critically polluted industrial cluster, having a score of more than 70 that requires extra mitigation measures for operating any polluting activity.
As per EC conditions, preparation of progressive mine closure plan based on the quantum of coal extracted from the mining area was required and overburden generated was required to be backfilled. The entire mining area was required to be backfilled up to the ground level.
However, the companies allegedly violated the condition and dumped the overburden on agricultural fields, adversely affecting land fertility and resulting in soil contamination. Besides, the companies built an earthen bund by encroaching private land.
Hindalco, which acquired Indian Aluminium Company Limited, the original lessee of coal block since 1994, was granted EC for coal extraction in 2001. GMR Chhattisgarh Energy Limited won the coal block bid in 2015. Later, it became REL, a subsidiary of Adani Power Limited.
According to NGT, Hindalco had first created overburden and when the lease of the mine was handed over to REL, it remained under an obligation to comply with the EC conditions and to manage the overburden with the existent norms.
Splitting liability
“We accordingly apportion the liability between Hindalco and REL in the ratio of 75:25. Compensation for past damage to environment due to the violation and the cost of remediation has to be worked out,” the NGT said.
The NGT directed Hindalco to deposit an interim compensation of ₹7.5 crore and ₹2.5 crore for REL to meet the assessed compensation and cost of remediation. It further directed that compensation for past violations and cost of remediation should be worked out and restoration plan prepared by a six-member expert committee. The nodal agency will be regional officer, Ministry of Environment Forest and Climate Change, Bhubaneswar, for coordination and compliance.
