NGT seeks responses on 'environmental violations' in NINL expansion

The tribunal has issued notices to the Centre, Odisha government and NINL over allegations of large-scale tree felling and ecological damage linked to the steel plant expansion

Amid allegations of large-scale tree felling, ecological damage, and environmental violations, the National Green Tribunal (NGT) has issued notices to the Union government, Odisha government, and Neelachal Ispat Nigam (NINL), seeking separate responses on the company’s steel plant expansion project at Kalinganagar in Jajpur district.

 

The order followed a petition challenging the environmental clearance (EC) granted on February 24 for the expansion and modernisation of NINL’s integrated steel plant from 981,000 tonnes per annum crude steel capacity to 6.2 million tonnes per annum (mtpa), allegedly without adequate biodiversity assessment and cumulative environmental impact studies.

 

Kalinganagar and Duburi host a cluster of 19 steel and allied industries, including integrated steel plants, ferroalloy units, cement facilities, and sponge iron plants, within a 10-kilometre (km) radius. The petitioners alleged that pollution levels in the area are already unbearable and that the proposed expansion would worsen conditions for local residents. The project involves felling more than 70,000 trees on diverted forest land.

 

The petitioners contended that the Expert Appraisal Committee (EAC) of the Ministry of Environment, Forest and Climate Change (MoEFCC) had itself expressed concern over “large-scale tree felling” during its site visit and recommended a revised layout plan to minimise ecological damage through tree retention and translocation measures.

 

Sankar Prasad Pani, counsel for the petitioners, said that according to the EAC site visit report, 91,892 trees were identified within the project area, of which 70,387 were proposed to be felled. “Surprisingly, the revised layout prepared in line with the recommendation to prioritise forest conservation and optimise land use by reducing tree felling was not considered before the grant of EC,” he said.

 

The appeal further alleged that NINL had begun tree felling and construction activities before obtaining environmental clearance, and argued that the project should therefore have been treated under the “violation category” under environmental laws.

 

The petitioners also accused authorities of granting clearance without conducting cumulative impact and carrying-capacity studies despite the region already hosting a dense cluster of steel and allied industries.

 

According to the petition, Kalinganagar has been classified as a non-attainment city for consistently failing to meet National Ambient Air Quality Standards, particularly for particulate matter PM2.5 and PM10. It is among the 131 cities covered under the National Clean Air Programme, which aims to reduce air pollution by 40 per cent by 2026.

 

“Industrial expansion in non-attainment areas must be strictly governed by the carrying capacity of the region. If air and water quality already exceed permissible limits, any further expansion — from 981,000 tonnes to 6.2 mtpa — may be legally untenable until ambient standards are restored,” the petition observed.

 

The appellants alleged that no hydrological carrying-capacity study had been conducted despite the project’s proposed water requirement rising from 17,760 cubic metres per day to 81,600 cubic metres per day, largely dependent on river water sources.

 

Referring to earlier show cause notices issued by the Odisha State Pollution Control Board (OSPCB) against NINL over the alleged discharge of untreated industrial effluents into local drains connected to the Brahmani river system, the petitioners said one notice issued in 2015 mentioned excess cyanide and phenol contamination in groundwater and nearby ponds. Another notice reportedly cited high levels of biochemical oxygen demand, chemical oxygen demand, cyanide, and phenol in treated effluents and downstream water bodies.

 

The petitioners also questioned the public hearing process conducted in December 2024, alleging that the venue was located nearly 15 km from the project site, restricting participation by affected tribal villagers. They further alleged that local residents opposing the project were denied entry while supporters transported by the company were allowed inside the venue.

 

“There has been no biodiversity impact assessment, cumulative impact assessment or carrying-capacity study of the area. Since the public hearing was not free and fair, it cannot form the basis for grant of EC. Past non-compliances were also not considered before granting EC for the project expansion,” Pani said.

 

The MoEFCC had granted environmental clearance to the project on February 24. The EC document stated that the proposal had been revised from an earlier plan for 9.5 mtpa capacity after concerns were raised over forest land demarcation, greenbelt compliance, and tree enumeration.

 

The EAC also noted that a substantial portion of the project area falls under Stage-II forest clearance granted in 1996 and recommended maintaining a 455-hectare (ha) greenbelt, including 105 ha at Godigotha village.

 

During the appraisal process, the EAC observed that nearby villages such as Baragadia, Duburi, Nuagaon, and Sarangapur could be affected by the project. It recommended stronger greenbelt measures, environmental monitoring, and epidemiological studies to assess health impacts on local communities.

 

The tribunal has now sought responses from the Odisha government, MoEFCC, forest authorities, OSPCB, and NINL. The matter has been posted for further hearing on August 10.