Chennai Petroleum Corporation has received a show cause notice from the Tamil Nadu Pollution Control Board (TNPCB) seeking damages of Rs 73.68 crore for the oil spill due to Michaung cyclone in Ennore, Chennai.
In an exchange filing, it has said notice has been issued seeking a reply as to why environmental compensation of Rs 73.68 crore as socioeconomic damage cost and environment damage cost caused due to oil spill shall not be levied.
The company said that there was no impact on the operation and other activities. It was examining the notice legally, and appropriate action will be initiated.
The National Green Tribunal (NGT) issued notice to the Government of Tamil Nadu, and TNPCB also made CPCL a party. The company, along with the state government, has taken adequate measures for cleaning and rehabilitation of the affected areas. The matter is pending for further hearing.
Chennai Petroleum Corporation (CPCL), one of the leading group companies of Indian Oil Corporation, is one of the most complex refineries of its kind in the country, producing an array of value-added petroleum products. As of 30 September 2023, Indian Oil Corporation held a 51.89% stake in CPCL.
The petroleum refineries reported a standalone net loss of Rs 629.49 crore in Q2 FY25 as against a net profit of Rs 1,190.56 crore in Q2 FY24. However, revenue from operations (excluding excise duty) fell 26.9% to Rs 12,086.54 crore in the quarter ended 30 September 2024 from Rs 16,544.56 crore recorded in the corresponding quarter previous year.
The counter rose 1.98% to Rs 595.25 on the BSE.
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