Environment Ministry has asked Adani group to create a green restoration fund of Rs 200 crore for repairing environmental damage to Mundra in Gujarat where its port and SEZ projects are coming up.
Environment Minister Jayanthi Natarajan said she has accepted environmentalist Sunita Narain-headed panel's recommendation in this regard.
The five-member committee, in its report submitted in April, had asked the government to create an environment restoration fund, which should be one per cent of the project cost (including the cost of the thermal power plant) or Rs 200 crore, whichever is higher.
"The fund should be used for remediation of environmental damage in Mundra and for strengthening the regulatory and monitoring systems," it had said.
The Adani waterfront and power plant project have been in the eye of a storm for its adverse ecological impact.
The report had said that due to non-compliance of environmental clearance rules by the company, there have been widespread destruction of mangroves and deterioration and loss of creeks near the proposed North Port.
"Seventy-five hectares of mangroves have been lost in Bocha Island, which was declared as a conservation zone.
"The company has not taken precautions to guard against blocking of creeks because of construction activities; satellite imagery shows signs of deterioration and loss of creeks near the proposed North Port," it had said.
The panel did not recommend putting the project on hold as it observed that it has moved very far but advised the ministry to cancel environmental clearance of the North Port.
Reacting to the recommendations, the Gujarat-based firm had maintained that since the north port has not been developed at all, it would not impact the current operations of the company.
Based on the complaints it received, Environment Ministry had set up the committee to examine the allegations.
