MoEF committee once again defers green nod to GSPC's LNG terminal

EAC defers EC, CRZ clearance in wake of pending litigation against Adani's port

Once again the decision on environment clearance (EC) and costal regulatory zone (CRZ) clearance for GSPC LNG Ltd's LNG terminal has been deferred by the expert appraisal committee (EAC) of the ministry of environment and forest (MoEF), in wake of pending litigation against Adani's port at Mundra where the terminal is proposed to be set up.

The decision to defer grant of EC and CRZ clearance to GSPC LNG was taken during the 127th meeting of the EAC for projects related to infrastructure development, coastal regulation zone, building/construction and miscellaneous projects. The meeting was held between October 28-30.

"The Committee was informed by MoEF officials that the MoEF was examining follow up action on certain significant issues raised in the report of the Sunita Narain Committee on the (Adani) port developments. As the matter was under active consideration of the MoEF, the EAC did not think it appropriate to issue any recommendation relating to the project at this stage. It is decided to defer the proposal till a report on the issue is received by the EAC from the Ministry," the minutes of the EAC meeting stated.

The decision of the EAC comes after MoEF issued a showcause notice to billionaire Gautam Adani promoted Adani Port and Special Economic Zone (APSEZ)  for alleged violation of environment laws in September this year. In the notice the ministry had proposed to revoke the environmental clearance to APSEZ's North Port.

The notice was issued after the MoEF accepted recommendations of the five member committee headed by Sunita Narain. The report was submitted to ministry in April this year where it was held that Adani Port and Special Economic Zone (APSEZ) Ltd had violated environmental clearance conditions. The committee had also recommended imposition of penalty on the company which is part of the Adani Group.

In June also the EAC had deferred decision on the same proposal for grant of EC and CRZ clearance following certain observations and recommendations made by the Narain committee with regard to the development of Adani port, where the LNG terminal is to come.

The company officials of GSPC LNG could not be contacted despite repeated attempts.   

In April this year, the committee headed by Narain had held that APSEZ Ltd had violated environmental clearance conditions and recommended imposition of penalty on the company.

GSPC LNG Ltd, a joint venture between state-owned Gujarat State Petroleum Corporation (GSPC) Ltd and Adani Group, for setting of the LNG terminal. The state government 25 per cent direct equity in the Rs 3,500 crore project.

It was set up in 2007 to develop a LNG receipt, storage and regassification terminal at Mundra in Gujarat. The terminal proposes to have initial capacity of 5 MMTPA (million metric tonne per annum) with provision to expand to 10 MMTPA and ultimate expansion shall lead to capacity of 20 MMTPA. The 5 MMTPA LNG terminal is proposed to have LNG carrier berthing and unloading facilities. It will have two LNG storage tanks having net capacity of 160,000 cubic meters each, which are proposed to be developed as part of Phase I of the development of the GSPC LNG Terminal. Space to install a third LNG storage tank will be reserved for expansion during Phase II. It will also have a LNG regasification system.

At present, there are two LNG terminals in the state- one at Hazira in south Gujarat and the other at Dahej with combined capacity of over 13 MMTPA. Besides, Mundra another LNG terminal is proposed at Pipavav port, which will have 2.5 MMTPA to 5 MMTPA capacity.