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The National Green Tribunal has upheld an environmental damage compensation of INR 122.05 crore imposed on 337 ceramic manufacturing units operating in the Morbi Wankaner industrial cluster in Gujarat for the illegal use of coal gasifiers. The penalty, levied by the Gujarat Pollution Control Board (GPCB), relates to prolonged non-compliance with directions requiring ceramic units to shift from coal gasifiers to cleaner fuel alternatives such as piped natural gas. In the past week, the NGT dismissed appeals filed by the units challenging the levy on procedural grounds, including the absence of individual show-cause notices and hearings. The tribunal held that the regulator's methodology for calculating and apportioning the compensation was legally sound. The ruling reinforces the applicability of environmental compliance norms in industrial clusters with high pollution intensity.
The National Green Tribunal has dismissed appeals filed by 337 ceramic units in Gujarat's Morbi-Wankaner industrial belt, upholding an environmental damage compensation of INR 122.05 crore imposed for the continued use of prohibited coal gasifiers. The order was passed by the tribunal's West Zone bench in the past week, confirming the penalty levied by the Gujarat Pollution Control Board. Advertisement
The compensation relates to environmental violations arising from the operation of coal gasifiers, which had been directed to be shut down following regulatory and judicial interventions mandating a transition to cleaner fuel sources, including piped natural gas. The Morbi-Wankaner region, one of the country's largest ceramic manufacturing clusters, has remained under regulatory scrutiny due to the scale of industrial emissions associated with coal-based fuel use.
In its submissions before the tribunal, the affected ceramic units had challenged the GPCB's orders on multiple grounds. These included claims that the environmental damage compensation was imposed without issuing individual show-cause notices or granting personal hearings, and that the levy was calculated retrospectively from the date of possession of coal gasifiers rather than from the date of adjudication. The appellants also questioned the uniform approach adopted by the regulator in computing the compensation.
The tribunal rejected these arguments, observing that the pollution control board had followed a rational and transparent methodology. The GPCB had initially identified 606 ceramic units liable to pay compensation and subsequently apportioned the total amount based on the size and operational capacity of each unit. The NGT held that this classification-based approach was reasonable and consistent with environmental jurisprudence, particularly the polluter pays principle.
The tribunal further noted that environmental damage compensation is intended to address the cumulative impact of pollution rather than operate as a penal proceeding requiring individual hearings in every instance. It found no procedural irregularity or legal infirmity in the regulator's actions and concluded that the affected units had failed to demonstrate grounds for interference.
The Morbi ceramic cluster has faced sustained regulatory action since earlier NGT directions ordered the phased closure of coal gasifiers and a shift to cleaner fuels to mitigate air pollution. While several units have since transitioned to piped natural gas, the tribunal's ruling confirms that past violations remain subject to recovery. The decision reinforces the enforcement authority of pollution control boards and signals continued judicial support for stringent environmental compliance in heavily industrialised regions.
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