Questions over green nod transfer to Adani firm

The Union environment ministry’s move to transfer the controversial environment clearance (EC) granted for the expansion of the thermal power plant from Udupi Power Corporation Ltd (UPCL), a subsidiary of Adani Group, to Adani Power Ltd, another subsidiary into which UPCL was amalgamated, has raised questions as the proposed expansion is caught in a legal dispute.

The Ministry of Environment, Forests and Climate Change (MoEF&CC) had in 2017 granted EC, allowing the company to expand the coal plant in Udupi’s Yelluru by adding 2X800 MW imported coal-based super critical thermal power units. However, this was challenged before the National Green Tribunal (NGT) which was hearing the case against the existing 2X600 MW plant following an appeal by NGO Janajagruti Samiti.

Following an application by Adani Power Ltd, the ministry transferred the EC, which  the NGT termed “bad inter alia for having failed to comply with the mandatory requirement” under the Environment Impact Assessment (EIA) notification. The NGT later gave clear directions on the steps to be taken before giving the EC.  

Taking note of the environmental damage and negative health impact on the surrounding areas, the NGT had imposed a penalty (“environment compensation”) of Rs 52.02 crore in its final verdict in May 2022.

The judgement quoted findings from two reports: a carrying capacity report and expert committee report which had flagged high levels of air and water pollution.

It ordered that the company has to conduct a detailed EIA study through an accredited agency and submit a report along with the application for grant of environmental clearance for expansion on the basis of the observations made by this tribunal.

To a question on whether the company has complied with the judgement, including the payment of penalty, a spokesperson for Adani Power Ltd said: “Adani Power Ltd has filed an appeal in the honourable Supreme Court against the judgement and order dated May 31, 2022, passed in the original application numbers 26, 27 and 28 of 2023 (SZ) and appeal number 51 of 2012 (SZ) and 86 of 2017 (SZ) by the honourable National Green Tribunal. We are committed to doing business in a responsible manner and to building trust with all stakeholders.”

Meanwhile, UPCL was amalgamated along with other power subsidiaries, into Adani Power Ltd. The company then filed an application before the MoEF&CC seeking transfer of the EC for the existing plant (2X600 MW) and the proposed expansion (2X800 MW).

The Union ministry in June 2023 transferred both the ECs, without waiting for the Supreme Court to rule on the appeal by Adani Power Ltd. The NGT order has issued specific directions to the ministry to get additional studies conducted on environmental and social impact of the proposed expansion. In the absence of a stay from the Supreme Court, the ministry should have looked into all the expert committee reports and referred the request of expansion to an expert committee.

An activist looking into the issue said the MoEF&CC was wrong in allowing the transfer of the EC for 2X800 MW expansion. “The carrying capacity study has given a clear opinion against the expansion. The Union ministry’s decision to transfer the EC without following the directions of the NGT is concerning,” he said.

DH did not receive any reply from the ministry to detailed queries.