Supreme Court Allows Thermal Power Plant to Continue Operations Subject to Environmental Compliance in Public Interest. The Court held that closing the plant would adversely affect power supply in an energy-deficient state, given its operational status since 2015 and compliance with conditions under the Environment Impact Assessment Notification, 2006.

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Case Note & Summary

The dispute arose from appeals filed by M/s IL&FS Tamil Nadu Power Company Limited against judgments of the National Green Tribunal concerning the Environment Clearance for a thermal power plant in Tamil Nadu. The appellant had incorporated in 2006 to establish a 3600 MW coal-based plant, obtaining clearance under the EIA Notification, 2006 after public hearing and expert appraisal. Original petitioners, fishermen and their representatives, appealed against the clearance, leading to NGT orders in 2012 and 2014. The NGT initially upheld the clearance but directed a review based on cumulative impact assessment, later quashing a corrigendum that imposed additional conditions. The appellant commenced operations in 2015 under an interim stay from the Supreme Court. The core legal issues involved whether the plant should continue in public interest and the maintainability of appeals against the corrigendum. The appellant argued that closing the plant would harm public interest due to power supply to millions, compliance with conditions, and significant investments, including installation of pollution control systems. The Ministry of Environment emphasized compliance with all conditions. The Court analyzed the operational status since 2015, the plant's role in a power-deficient state, and compliance efforts, concluding that discontinuation was not in public interest. It kept open questions on the necessity of cumulative impact assessment and the maintainability of appeals against the corrigendum. The decision allowed the plant to continue operations subject to strict compliance with all environmental conditions, directing adherence to any outstanding requirements within stipulated timelines.

Headnote

A) Environmental Law - Environment Clearance - Compliance and Public Interest - Environment Impact Assessment Notification, 2006 - The Supreme Court considered whether to allow a thermal power plant to continue operations despite procedural challenges, focusing on public interest and compliance with environmental conditions. The plant had been operational since 2015, supplying power to a large population in an energy-deficient state, and had installed a Flue Gas De-sulfurization system at significant cost. The Court held that closing the plant would not be in public interest, given its operational status and compliance efforts, and permitted continuation subject to strict adherence to all conditions. (Paras 4-6)

B) Environmental Law - Appeals and Corrigendum - Maintainability - National Green Tribunal Act, 2010 - The Court addressed the maintainability of an appeal before the National Green Tribunal against a corrigendum issued by the Ministry of Environment, Forest and Climate Change imposing additional conditions to the Environment Clearance. The original petitioners had not challenged the initial judgment upholding the clearance but directed a review, leading to questions about their locus standi. The Court kept this legal question open while disposing of the appeals, allowing the plant to operate. (Paras 7-8)

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Issue of Consideration

Whether the thermal power plant should be allowed to continue operations in public interest despite procedural issues and whether the appeal against the corrigendum to the Environment Clearance was maintainable.

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Final Decision

The Supreme Court allowed the appeals, permitting the appellant to continue the power plants subject to compliance with all conditions of the Environment Clearance and corrigendum, and kept open questions of law regarding cumulative impact assessment and maintainability of appeals.

Law Points

  • Environmental law
  • public interest
  • compliance with environmental clearances
  • maintainability of appeals against corrigendum
  • cumulative impact assessment
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Case Details

2023 LawText (SC) (2) 11

CIVIL APPEAL NOS. 1811-1812 OF 2015

2023-02-17

M.R. Shah

Dr. Abhishek Manu Singhvi, Shri Shiv Mangal Sharma

M/s IL&FS Tamil Nadu Power Company Limited

T. Muruganandam & Others

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Nature of Litigation

Appeals against judgments of the National Green Tribunal regarding Environment Clearance for a thermal power plant

Remedy Sought

Appellant seeks to continue operations of the power plant, challenging NGT orders that quashed a corrigendum and directed review

Filing Reason

Aggrieved by NGT judgments dated 23.05.2012 and 10.11.2014

Previous Decisions

NGT upheld validity of Environment Clearance but directed review based on cumulative impact assessment in 2012; NGT quashed corrigendum imposing additional conditions in 2014

Issues

Whether the thermal power plant should be allowed to continue operations in public interest Whether an appeal against the corrigendum to the Environment Clearance is maintainable before the NGT

Submissions/Arguments

Closing the plant would not be in public interest as it supplies power to millions in an energy-deficient state and has complied with conditions The appeal against the corrigendum may not be maintainable due to lack of locus standi of original petitioners The appellant must comply with all conditions imposed in the Environment Clearance and corrigendum

Ratio Decidendi

In public interest, operational thermal power plants supplying essential power in deficient states should be allowed to continue if they demonstrate compliance with environmental conditions, even if procedural issues exist.

Judgment Excerpts

Feeling aggrieved and dissatisfied with the impugned judgment and order dated 23.05.2012 in Appeal No. 17/2011 and judgment and order dated 10.11.2014 in Appeal No. 50/2012 passed by the National Green Tribunal The appellant submitted Form I under EIA Notification, 2006 to obtain Terms of Reference for the EIA study on 5.2.2008 By the impugned judgment and order dated 10.11.2014, the NGT has disposed of Appeal No. 50/2012, quashing the corrigendum dated 14.08.2012 Dr. Abhishek Manu Singhvi, learned Senior Advocate appearing on behalf of the appellant-company has submitted that to close the power plant now would not be in public interest

Procedural History

Appellant incorporated in 2006, submitted EIA in 2008, public hearing in 2010, granted Environment Clearance. Original petitioners appealed to National Environment Appellate Authority in 2010, transferred to NGT. NGT upheld clearance but directed review in 2012. Appellant completed Rapid Cumulative Impact Assessment, MoEF issued corrigendum in 2012. Original petitioners appealed against corrigendum, NGT quashed it in 2014. Appellant filed appeals to Supreme Court, interim stay granted in 2015, plant operational since 2015.

Acts & Sections

  • Environment Impact Assessment Notification, 2006:
  • National Green Tribunal Act, 2010:
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