Environment clearance for Adani's Mundra SEZ

Ministry says restore creeks to 2005 condition, do not modify rivers, sand dunes

The Union environment ministry has cleared 8,481 hectares in Mundra taluka of Kutch district in Gujarat for Adani Ports and Special Economic Zone Ltd. The ministry also granted a coastal regulation zone clearance for setting up a desalination plant, seawater intake and outfall facility as well as a pipeline.

However, the ministry has laid down 21 conditions for Adani Ports and Special Economic Zone. These include restoring "creeks to the condition as was seen in the satellite map of 2005", preparing an action plan for conservation and protection of creeks and mangroves and no industrial activity in the coastal regulation zone. The ministry further said in its July 15 order that Adani Ports and Special Economic Zone would have to abide by the outcome of a case pending in the Supreme Court on the Mundra special economic zone.

A GREEN NOD WITH CONDITIONS

• Till the approval of an action plan for conservation and protection of creeks/mangrove area, the coastal regulation zone (CRZ) within SEZ will be demarcated as ‘no development zone’. APSEZ will not be allowed to undertake any development in CRZ area of SEZ
• APSEZ will earmark separate budget for the implementation of the above action plan
• No industrial activity within CRZ area except the port and harbour and the foreshore facilities to be allowed
• APSEZ to not carry out any river course modification
• There will be no disturbance to the sand dunes. The pipelines will be laid using an advanced method like horizontal directional drilling (HDD) so as to avoid disturbance to the sand dunes, creeks, mangroves
• Properly conserve the creeks, river and mangroves in the area
• Ensure the mouths of all the creeks are kept open to aid flushing of the creeks

The ministry asked Adani Ports and Special Economic Zone not to modify the course of rivers or cause disturbance to sand dunes and to submit once a year the latest satellite map that could be compared with the reference map of 2005 to ensure no modification in creeks, rivers and mangroves had taken place.

Adani Ports and Special Economic Zone has been mired in controversy over environmental norms with nearly half a dozen cases pending in the Gujarat High Court. As a result of the litigation there is a ban on construction and development within the notified area. Adani Ports and Special Economic Zone may find it difficult to to enlarge the special economic zone to over 15,000 hectares.

The Gujarat High Court held in January this year Adani Ports and Special Economic Zone did not have a valid environmental clearance and neither did it qualify for deemed environment clearance and ordered the shutting down of 12 units in the zone. These units approached the Supreme Court, which allowed them to continue operations but restricted further expansion and construction. The apex court also directed the Union environment ministry to decide on a clearance to Adani Ports and Special Economic Zone.

Commenting on the clearance, Gautam Adani, chairman of the Adani Group, said, “The grant of the environmental clearance to the Mundra SEZ will encourage investment and development is expected at a much faster pace as it provides seamless connectivity through sea, rail and road.”

Adani Ports and Special Economic Zone said the clearance would allow it  to set up a  desalination plant, an effluent treatment plant and take in seawater, all of which constitute primary infrastructure to be provided for companies setting up business units in the zone.

The clearance would also allow the zone to host industries, which would generate additional cargo volumes for the Mundra port, the company added. The zone includes Mundra port, which became India’s largest by handling 100 million tonnes of cargo in 2013-14.

Industrial units within special economic zones get a waiver on import duty, excise and service tax for capital goods and raw materials procured. These zones have been promoted to attract foreign direct investment as well as to push exports.