Chemplast Sanmar Ltd

On two separate occasions, the Indian People's Tribunal on Environment and Human Rights, headed by retired Madras High Court judges issued adverse reports against Chemplast's ongoing and (at the time of the report) proposed activities in Mettur and Cuddalore, Tamilnadu. As of April 2009, the company's facilities in Mettur Dam were operating without the mandatory up-to-date licenses required under India's environmental legislation. The company's chlorofluorocarbons factory, which does not have a valid license to operate, has registered with the United Nations Framework Convention for Climate Change to generate 540,000 CERs per year for the next 10 years. [See page 53 of "Letter of Offer" attached below.]

Mettur Dam operations: Environmental and health impacts
As of April 2009, the company was operating its plants in Mettur without renewing the mandatory consent for operation that has to be issued by the Tamilnadu Pollution Control Board.

The company's Mettur Dam chemicals complex has been linked to environmental and human rights violations, and a People's Tribunal headed by late Justice (Retd) Akbar Kadri of the Madras High Court held the company responsible for "causing irreparable damage to humans, animals, and environment." These findings were released after the Tribunal visited Mettur in May 2005, and heard from more than 400 people, including factory workers. A copy of the report "Environmental and Human Rights Violations by Chemplast Sanmar and Malco Industries at Mettur, Tamilnadu" is attached below.

The same report also cited the company for polluting the Kaveri River based on scientific analysis that found that air near the "treated" effluent outfall from the company's PVC factory contained high levels of toxic chemicals, including carcinogens. Of the total 17 chemicals found in the air sample, eight exceeded US EPA's health-based screening levels. Six of the 17 were known human and/or animal carcinogens. 1,2-dichloroethane and vinyl chloride -- both carcinogenic raw materials used by the company -- were found at 32,000 times and 2,100 times respectively above US EPA-prescribed safe levels. See pages 15-16, "Smokescreen: Ambient Air Quality in India." March 2007.

In November 2007, Chennai-based Community Environmental Monitoring released a report "Unfolding Disaster" based on samples of air, water, and soil sediment taken from around Chemplast's chemical plants. Undertaken at the request of the Gonur West Agriculturists Development Union, the exercise detected 52 chemicals in the nine samples taken in Mettur. Of these, 17 chemicals were found to be above one or more of four safety levels prescribed by various international regulatory agencies. Twelve of the 17 chemicals, including -- dioxins, furans, and hexachlorobenzene -- were carcinogens.

In 2005, farmers from three villages around Chemplast's factories in Mettur filed a suit claiming reparations from the company. They have asked the Loss of Ecology Authority to direct Chemplast to compensate for losses sustained owing to a polluted environment and contaminated groundwater, and to require the company to clean up the environment. In January 2006 the authority sent the company a notice asking it to why losses allegedly caused by the company's operations should not be assessed and awarded. As of April 2009, the case had not been heard.

In 2007 the West Gonur Farmers Welfare Association, a.k.a West Gonur Agriculturists Development Union, challenged the setting up of a 50 megawatt coal-fired thermal power plant at Chemplast's premises in Mettur. The company is accused of building the power plant illegally without environmental due diligence, and of submitting false information to the Tamilnadu Pollution Control Board. The matter is pending final order from the Tamilnadu Pollution Control Board. See page (xii) of Letter of Offer.

Farmers allege that the company has been using tankers to illegally dump toxic effluents into the Cauvery River. On March 11, 2009, villagers reported to the Karumalaikoodal Police Station that a tanker carrying toxic effluents from Chemplast Sanmar discharged its contents into a water body in Mettur. Based on a worker tip-off that Chemplast was routinely dumping tanker loads of acidic effluent into local canals, farmers from the Gonur West Agriculturists Development Union tracked one of the tankers, and apprehended it at the PMV Service Centre in SIDCO area, near Thangamapuripatnam. The tanker was caught as soon as it began releasing a yellow liquid with a strong acidic odour into a pit filled with sand and stones.

Gas leak, toxic effluent discharges and other accidents
The Gonur West Agriculturist Development Union has documented numerous toxic gas leaks and effluent spills from the factory. They charge that say Chemplast's illegal toxic discharges into River Cauvery caused large-scale fish kills.

July 18, 2004
About 100 people were reportedly exposed to chlorine during a major gas leak. A 22-day old child and more than 20 others had to be hospitalized. No action was taken against the company. No compensation or long-term medical assistance has been provided to the victims. According to his father, Madheshwaran, the young boy, Samy Velu, continues to suffer from a variety of debilitating ailments and the toxic exposure has retarded his growth. A case claiming compensation and medical reimbursement was pending as of April 2009.

September 28, 2006
Shopkeepers and shoppers near the Raman Nagar commercial area opposite the gates of Chemplast Sanmar factory in Mettur were assailed by a wave of chlorine gas at around 2 p.m. The gas was reportedly released from the company's Plant III.

November 27, 2007
An explosion at the power plant site sent huge boulders flying into the nearby residential area damaging some houses and causing panic. A case was registered.

December 7, 2007
A major leak of chlorine gas from Chemplast Sanmar’s chloralkali plant in Mettur caused panic among workers and the general public in the main road opposite the factory gate. According to Tamilnadu Pollution Control Board, the chlorine gas leak was caused by power failure in the factory at 11 a.m. Company sources reportedly told the board that power was restored within three minutes. Chlorine levels registered 4.9 parts per million at the factory tower and 0.8 ppm near the gate.

December 10, 2007
Just 3 days after a massive leak of chlorine gas, a fire began in the monomer cooling tower in the PVC division of Chemplast Sanmar. The fire lasted 15 minutes. No injuries were reported. Vinyl Chloride Monomer is a highly reactive gas with a potential to cause a high magnitude explosion.

February 5, 2008
A massive fish kill of tilapia and an eel-like freshwater fish was reported downstream from Chemplast Sanmar's effluent discharge point in the Cauvery River on February 3. The fish kill occurred in Sunambu Kuttai, a natural rock pool about 100 meters downstream of Chemplast's discharge point in the surplus course of the Cauvery. Gonur west Agriculturist's Development Union filed a police complaint against the company.

February 10, 2008
An underground effluent pipeline suspected to be from Chemplast Sanmar was accidentally broken while workers were laying foundation for a new railway station in RS, Mettur. The railway station is 100 feet from Plant 1 of Chemplast Sanmar Ltd. Suspecting that the pipe was carrying effluents from Chemplast Sanmar, railway authorities called for Chemplast officials to repair the pipeline. Chemplast sent workers to conduct the repairs.

March 2, 2008
Villagers discovered that an underground pipeline carrying effluents had been accidentally broken during Chemplast's construction of a new coal yard at the Railway Station in Mettur. Observing a strong odor like that of ethylene dichloride at a stream emptying into the surplus flow of the Cauvery, villagers tracked the stream half a kilometer back to a broken pipeline. The pipeline is suspected to carrying effluents from Chemplast Sanmar industries for discharge into the Cauvery River . The villagers immediately informed the Tamilnadu Pollution Control Board authorities. Documents obtained through the Right to Information Act reveal that the coal yard's construction was unlicensed and illegal as no permission had been obtained under the Indian Air and Water Acts.

September 28, 2008
A massive gas leak of HCFC 22 (Hydrogenated Chloroflouro Carbon 22) from Chemplast Plant I, manufacturing Chloroflouro Carbons, began 5.30 p.m and lasted more than an hour. The white smoke had an irritating, acidic odor. People exposed experienced severe nose and eyes burning, and a bitter, bilious taste in their mouths. HCFC is an ozone-depleting gas that is due to be phased out under the Montreal protocol.

February 21, 2009
A massive explosion occurred in Chemplast’s Metkem Silicon plant at around 2:30 pm. The explosion was linked to the company’s failure to properly maintain equipment or observe precautionary measures. Thangaraj a 23-year-old contract worker was severely injured and consequently his leg was amputated. He was among workers sent to clean a hydrogen tank. When workers used a blow torch to cut through bolts holding the tank's rusted cover, the flame came into contact with the hydrogen and the tank exploded.

March 11, 2009
A leak of chlorine and antimony gas from Chemplast Sanmar Plant 1 at 3.30 a.m was reported by local sources. There are no reports of any damage outside the factory premises, as there were no villagers at the main road owing to the time of the leak. District officials of the Tamilnadu Pollution Control Board claimed to be unaware of the incident.

April 6, 2009
A noxious gas leak between 8 and 8.45 p.m. from Chemplast Plant I (CFC division) brought angry villagers from Kavipuram and Desai Nagar to the plant gate. Villagers exposed to the unknown chemical reported a decayed coconut odor lasting about 45 minutes. Some villagers experienced eye, throat, and tongue irritation, and a bloated feeling in the stomach. Thangamani, a resident of Desai Puram filed a complaint regarding the leak in the Karumalaikoodal Police Station.

Tamilnadu Pollution Control Board, Assistant Engineer Manimaran arrived in Mettur at 12.30 a. m., more than 3 hours after the incident. After his inspection, he said he was unable to confirm a gas leak. Even though the company denied the leak, noting that its online monitors were non-functional, a company official, later identified as Arun Prasad, reportedly apologized to the villagers for what was "merely a refrigerant leak" and assured them that it would not recur.

Cuddalore: Controversial PVC project
An earlier report by a similar Tribunal headed by Justice (Retd) J. Kanagaraj investigating environmental conditions at a chemical industrial estate in Cuddalore concluded that Chemplast Sanmar's proposed PVC factory there would introduce massive new pollution into the an already over-polluted environment. The tribunal recommended against the setting up of the PVC factory. A copy of the report is attached below.

In 2002, community groups in Cuddalore, as well as environmental organizations and politicians from both India and the United States pressured the International Finance Corporation to nix a proposed $20 million loan to Chemplast. In an unprecedented move, the IFC indefinitely postponed a vote on the project. [See "Clearance to PVC Plant Shocks Eco Groups." 28 January, 2003. The Hindu.]

In 2003, after the company failed to get permission from the Tamilnadu Pollution Control Board, pursuant to public opposition during a statutory public hearing, Chemplast signed a Memorandum of Understanding with the Andhra Pradesh government to locate its PVC factory in Krishnapatnam. [See "Chemplast PVC project goes to AP." by M. Ramesh, The Hindu Business Line. January 7th, 2003].

In 2005, after it failed to get clearance from the Andhra Pradesh Pollution Control Board, the company returned to Cuddalore. The Tamilnadu Pollution Control Board, whose earlier reluctance had led to Chemplast's flight to Andhra Pradesh, then inexplicably granted it permission to set up the PVC factory, subject to other clearances. However, the company completed construction of the PVC factory, an offshore pier to offload vinyl chloride monomer, and a pipeline to transport the chemical to its factory even before receiving the pre-requisite permission under India's Coastal Regulation Zone Notification, 1991.

In 2009, a local community group complained to the Tamilnadu Pollution Control Board that the company had commenced trial runs without obtaining a license to operate. ["Chemplast Conducts Trial Runs Without Valid Permissions." 7 March, 2009. www.sipcotcuddalore.com]

Chemplast's tried to import a tanker ship-load of vinyl chloride monomer (a raw material for PVC production) in February 2009, even before obtaining a license. The fact that the Madras High Court was hearing a case about the legality of the new facility did not deter the company from engaging in a violation with both criminal and civil ramifications. The attempt to import the explosive, carcinogenic chemical without appropriate permissions generated major controversy with political parties and people asking for the chemical to be repatriated to Japan. See "Send Back Japanese Ship, says CPI (M)." 10 March, 2009. The Hindu.