Chennai Petroleum Corporation Limited announced informed that the Company has received a Direction from National Green Tribunal Southern Zone, Chennai to pay INR 50 million as no fault liability to be utilised for improvement of the environment & health of the people of the Nagapattinam district, Tamil Nadu. Details of the violations alleged to be committed: Oil leak from CPCL CBR crude oil pipeline near Nagore Coast, Nagapattinam, Tamil Nadu on March 02, 2023. The oil leak was arrested on March 04, 2023 early in morning.

Subsequently, the damaged portion of pipeline was also removed as per directives of the District Administration, Nagapattinam. The Joint Committee constituted by NGT concluded that the quantity of oil leak was less and there was no environmental impact and as such no remedial measure was suggested by the Joint Committee for subject crude oil pipeline. The Joint Committee also concluded that villagers were happy with the action taken by District Administration and CPCL.

There is no impact on the operation and other activities of the company. However, the financial implication would be limited to INR 50 million as no fault liability.