India approves HPCL’s Visakh refinery expansion

State-run Hindustan Petroleum Corp. Ltd. (HPCL) received environmental clearance from Indian officials to expand its Visakhapatnam refinery in Andhra Pradesh from 8.33 MMtpy to 15.0 MMtpy, reports said this week.

India's Expert Appraisal Committee (EAC), under the Ministry of Environment and Forests, approved the 18,400-crore expansion plan which was earlier rejected in 2013, citing a moratorium on industrial expansion in some of parts of Visakhapatnam.

"The Committee deliberated upon the issues raised during the public hearing/public consultation meeting conducted by the AP Pollution Control Board on June 26, 2015," the EAC said in the minutes of the meeting.

"The issues were raised regarding CSR, accident in plant premises, impact on environment in terms of traffic pollution, wages for contract workers, local employment and water supply facilities.

"The committee noted that issues have satisfactorily been responded by the project proponent and incorporated in the final EIA-EMP report.

"After detailed deliberations, the committee recommended the project for environmental clearance and stipulated... specific conditions along with other environmental conditions while considering accord of environmental clearance," the EAC said.

HPCL's expansion plans were not allowed to advance for the past several years due to environmental issues.

Rejecting the proposal in 2013, the EAC had said that the project falls under 'critically polluted' area. Additionally, an office memo on January 13, 2010, from the ministry had imposed a moratorium on further industrialization in that particular area of Visakhapatnam.

"As proposed, Rs 60 crore shall be earmarked towards the enterprise social responsibility based on public hearing issues and item-wise details along with time bound action plan shall be prepared and submitted to the Ministry's regional office in Chennai.

"Implementation of such program shall be ensured accordingly in a time bound manner," the EAC stipulated as one of the conditions to be followed.

HPCL operates two refineries, located in Mumbai and Visakhapatnam. They have capacities of 7.5 MMtpy and 8.3 MMtpy, respectively.