NGT slaps Rs 10 cr fine on Northern Coalfields over storing of coal

The National Green Tribunal has directed the Northern Coalfields Ltd to pay a compensation of Rs 10 crore for violation of environmental rules by unscientific storing of around 150k tonnes of coal

The National Green Tribunal (NGT) has directed the Northern Coalfields Ltd (NCL) to pay a compensation of Rs 10 crore for violation of environmental rules by unscientific storing of around 1.5 lakh tonnes of coal in Sonbhadra district of Uttar Pradesh.

The NGT was hearing a petition claiming the violation of environmental norms by unlawful dumping of coal in 35 bighas area belonging to the NCL, which was in the vicinity of a residential area.

Noting a report of an earlier constituted panel along with a letter by the state pollution control board (PCB), a bench of chairperson Justice A K Goel said the dumping of coal was to the detriment of the environment and public health and the NCL had failed to take necessary measures to prevent air pollution.

The bench also comprising judicial member Justice Sudhir Agarwal and expert member A Senthil Vel said the Rs 4.43 crore compensation determined by the state PCB was inadequate.

...the PCB has levied compensation on in-house formula which does not comply with parameters laid down by the Supreme Court but proceeds on presumed loss per day, irrespective of nature and extent of violation, cost of restoration and financial capacity of the violators, the bench said.

In the present case, the coal which was found stored was to the extent of about three lakh tonnes out of which about 50 per cent has since been lifted and remaining is still lying. Taking its value at the rate of Rs 10,000 per tonne, the value of stored material comes to Rs 30,000 crore, the bench added.

The green panel said the damage by such unscientific storing of coal has resulted in air pollution, contamination of groundwater and surface water, besides adverse impact on public health.

Accountability of such violations needs to be fixed and further degradation of environment needs to be prevented, it said.

Considering the cost of restoration and turnover of the transactions involved, we determine, on conservative estimated cost, the compensation to be Rs 10 crore which may be deposited by the NCL with state PCB for restoration of environment by preparing an action plan which may include proper stocking/handling of the coal, taking measures to control dust emission and time bound remediation, the tribunal said.

It said the plan had to be prepared within two months by a joint committee of the Central Pollution Control Board (CPCB), state PCB, District Magistrate, Sonbhadra and the forest department.

The committee may also ensure that the action points relating to controlling pollution of stocking and handling of coal be done to bring down the air index in context of overall comprehensive environmental pollution index (CEPI). If more amount is required for restoration, NCL will be liable to pay the same, the tribunal said.

Directing the state PCB to file an action taken report within two months, the tribunal posted the matter for further proceedings on August 7.