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Asian Paints Ltd., a leading paint company in India, has been directed to pay an interim Environment Damage Compensation (EDC) of ₹10 lakh by the Environment Engineer of the Gujarat Pollution Control Board (GPCB), Gandhinagar.
The directive, issued under Section 31A of the Air (Prevention and Control of Pollution) Act, 1981, was received by the company on March 6, 2024, and interestingly, did not specify any particular violation or contravention by the company.
The company said, "it was reviewing the said direction to understand the rationale for the EDC levied, as it followed all the statutory, safety, and environment-related norms at the under-construction project."
The imposition of the EDC follows a minor fire incident that occurred on December 22, 2023, at the company’s under-construction site in Ankleshwar, Gujarat. The fire was quickly controlled, and no casualties were reported. The damage was localized to the cooling tower area of the premises.
In response to the direction, Asian Paints has stated that it is reviewing the rationale behind the EDC, as all statutory, safety, and environmental norms were adhered to during the construction project. The company has made the payment without prejudice, indicating compliance with the directive while seeking further clarification.
In the order, a copy of which lies with Ground Report, Asian Paints is currently reviewing the direction to ascertain the basis for the EDC, as it maintains that all statutory, safety, and environmental norms have been followed.
The company’s proactive approach to understanding the directive and its commitment to environmental compliance will be closely watched by industry observers and stakeholders.
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