Crude Mistakes Cost Crores: ONGC Fined Again Over Environmental Violations in KG Basin

In a significant move towards environmental accountability, the National Green Tribunal (NGT) has directed Oil and Natural Gas Corporation Ltd (ONGC) to pay over ₹1 crore in environmental compensation for repeated violations at its facilities in Andhra Pradesh’s Krishna-Godavari (KG) Basin.

 

The Andhra Pradesh Pollution Control Board (APPCB), following extensive inspections, found that ONGC’s Effluent Treatment Plants (ETPs) at Odalarevu, Kesanapalli, and Tatipaka failed to meet discharge standards. These lapses were part of a larger pattern of non-compliance that has persisted despite previous penalties.

 

Background & Legal Action

 

The case, originally filed in 2020 by environmentalist and NRI Venkatapathi Raja Yenumula, highlighted oil pipeline leaks that damaged agricultural land and water bodies. The NGT Southern Zone Bench in Chennai issued a 298-page judgment on July 15, 2025, holding ONGC accountable for environmental violations in the East and West Godavari districts.

 

Previously, ONGC had been ordered to pay ₹22.76 crore in compensation, of which ₹7.52 crore was paid in September 2022 and the remaining ₹15.24 crore in December 2023. However, continued violations prompted the APPCB to calculate additional compensation for 122 days of non-compliance at Odalarevu and Kesanapalli, and 92 days at Tatipaka.

 

Breakdown of Latest Penalties

The tribunal has mandated that these fines be paid within a week.

 

Environmental Impact & Findings

The APPCB’s findings revealed that untreated effluents were being discharged, and hazardous waste like slop oil and ETP sludge was not properly managed. The Odalarevu unit remained non-compliant as of September 2024, despite commitments to upgrade its systems.

 

The NGT-appointed Joint Committee, which included officials from the Ministry of Environment, CPCB, APPCB, district collectors, and experts from Andhra University, confirmed the violations and recommended further action.

 

Next Steps & Oversight

The APPCB has been granted liberty to impose additional compensation and initiate further statutory actions. An expert committee has also been constituted to prepare an action plan for utilizing the previously paid ₹22.76 crore compensation, ensuring that the funds are directed toward environmental restoration and community welfare.

 

Public Response & Significance

Environmental advocates have welcomed the ruling, calling it a landmark step in holding industrial giants accountable. The case underscores the importance of rigorous environmental monitoring and the role of citizen activism in driving regulatory action.

 

Sources: New  Indian Express, The Hindu cpcb.nic.in, downtoearth.org.in