Private Sector

Relief for Tata Power, Vedanta: SC stays fines imposed by NGT

Relief for Tata Power, Vedanta: SC stays fines imposed by NGT

Relief for Tata Power, Vedanta: SC stays fines imposed by NGT for not utilising ash from thermal projects

Relief for Tata Power, Vedanta: SC stays fines imposed by NGT for not utilising ash from thermal projects – Supreme Court has stayed hefty fines imposed on Tata power company , Vedanta et al. for not fully utilising ash generated from its thermal projects, as ordered by the National Green Tribunal. A Bench led by DY Chandrachud while seeking response from the firms et al.

Last year, the apex court had stayed the NGT’s fines imposed on state-run power producer NTPC for not fully utilising ash generated from its thermal projects. NTPC had challenged the order alleging that the tribunal had did not consider the reluctance of user industries like cement plants to require ash from power plants as they need an obligation to try to to so.

Though the fines aren’t precisely quantified yet, on an aggregate basis, these may run into several hunderds of crores, consistent with sources.

The NGT in its Feb 12 interim order had held that thermal power plants (TTPs) which are unable to realize 100% ash utilization as on the deadline of Dec 31, 2017, in terms of the Union Environment Ministry’s 2016 notification are susceptible to pay environmental compensation in accordance with the formula provided by it. The tribunal had also in November 2018 ordered that TPPs which had did not eliminate 100% ash up to December 2017 to deposit damages for environment restoration to the tune of Rs 5 crore for TPPs beyond the capacity of 1000 MW.

Vedanta counsel Ranjana Roy Gawai told FE that “since the Vedanta group had achieved 100% utilization by FY2017-18, there’s no demand yet for environmental compensation. However, the most challenges are two-fold – constitution of joint committee contrary to the MoEF notification and also the formula for compensation for 2020.”

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