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 served notices on the Union government, Odisha government, and Neelachal Ispat Nigam Limited (NINL), asking them to submit separate responses on the company’s massive steel plant expansion project at Kalinga Nagar in Jajpur district.

 

The order came following a petition that challenged the environmental clearance (EC) granted on February 24 for expansion and modernisation of NINL’s integrated steel plant from 0.981 mtpa crude steel capacity to 6.2 mtpa without adequate biodiversity assessment and cumulative environmental impact studies.

 

Kalinga Nagar and Duburi host a cluster of 19 steel and allied industries, including integrated steel plants, ferro-alloy units, cement facilities, and sponge iron plants within a 10-km radius. The petitioners alleged that the existing pollution is unbearable and the capacity expansion of the NINL steel plant will add to the misery of the people. The project involves felling over 70,000 trees spread across diverted forest land.

   

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

 

Sankar Prasad Pani, counsel for the petitioner, said, as per the site visit report of the EAC, 91,892 trees were enumerated within the project area, of which 70,387 trees were proposed to be felled. “But surprisingly, the revised layout prepared as per the recommendation for prioritising forest conservation and optimising land use by reducing tree felling by NINL was not considered prior to the grant of EC,” he pointed out.

 

The appeal further alleged that NINL had already begun tree felling and construction activities before obtaining environmental clearance, and therefore the project should 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 area already hosting a dense cluster of steel and allied industries.

 

According to the petition, Kalinga Nagar is declared a non-attainment city as it consistently fails to meet the National Ambient Air Quality Standards (NAAQS), particularly for particulate matter 2.5 and 10. It is one of 131 cities under the National Clean Air Programme (NCAP) with a mandate 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 the air and water quality already exceed permissible limits, any further expansion (from 0.981 mtpa to 6.2 mtpa) may be legally untenable until ambient standards are restored,” it stated.

 

The appellants alleged that no hydrological carrying-capacity study was conducted despite the project’s proposed water requirement increasing 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, they said one of the notices from 2015 reportedly mentioned excess cyanide and phenol contamination in groundwater and nearby ponds. Another notice also cited high levels of BOD, COD, cyanide, and phenol in treated effluents and downstream water bodies.

 

The petitioners further questioned the public hearing process conducted in December 2024, alleging that the venue was located nearly 15 km away from the project site, restricting participation by affected tribal villagers. They 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, and carrying-capacity study of the area. Since the public hearing was not free and fair, this cannot be the basis for the grant of EC. Past non-compliances were also not considered prior to the grant of EC for expansion of the project,” Pani said.

 

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

 

The EAC also acknowledged that a substantial portion of the project area falls under earlier Stage-II forest clearance granted in 1996 and recommended the requirement for maintaining a 455-hectare greenbelt, including 105 hectares at Godigotha village.

 

During appraisal, the EAC had observed that nearby villages such as Baragadia, Duburi, Nuagan, and Sarangapur could be affected by the project and recommended strengthening of green belts, 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 August 10 for further hearing.