A v Nagaram vs Andhra Pradesh Pollution Control Board

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Item No.6:-

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BEFORE THE NATIONAL GREEN TRIBUNAL SOUTHERN ZONE, CHENNAI

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Dated this the 10^th day of January, 2025.

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[Through Physical Hearing (Hybrid Option)]

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Original Application No.04 of 2024 (SZ)

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IN THE MATTER OF

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K. Srinivas and Others Villagers of A.V. Nagaram, Kodada and K. Perumallapuram Villages, Thondangi Mandal, Kakinada District, Andhra Pradesh.

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… Applicant(s)

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Versus

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1. Andhra Pradesh Pollution Control Board Rep. by its Chairman, Paryavaran Bhavan, APIIC Colony Road, Gurunanak Colony, Autonagar, Vijayawada – 520 007.

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2. The District Collector & District Magistrate - Kakinada Office of Collector and District Magistrate, Raja Ram Mohan Rai Road, Kakinada – 533 004.

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3. M/s. Aurobindo Pharma Limited Rep. by its Director, Plot No.2, Maitrivihar, Ameerpet, Hyderabad – 500 038.

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4. Director of Medical & Health Rep. by its Director, Sultan Bazar, Kothi, Hyderabad – 500 095.

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...Respondent(s)

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For Applicant(s): None appeared. For Respondent(s): Mrs. Madhuri Donti Reddy for R1, R2 & R4. M/s. P. Venkaiah Naidu & Associates for R3.

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Page 1 of 8

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CORAM :

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HON’BLE SMT. JUSTICE PUSHPA SATHYANARAYANA, JUDICIAL MEMBER

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HON’BLE Dr. VIJAY KULKARNI, EXPERT MEMBER

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JUDGEMENT

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Delivered by Smt. Justice Pushpa Sathyanarayana, Judicial Member.

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1. The Principal Bench of the National Green Tribunal, New Delhi took cognizance Suo Motu based on the letter petition received from the villagers of A.V. Nagaram, Kodada, K. Perumallapuram Villages of Thondangi Mandal, Kakinada District, Andhra Pradesh on 19.07.2022 and registered a case as Original Application No.869 of 2022 (PB) .

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2. The complainants/Original Applicants are raising concerns about the proposed pharmaceutical unit viz., M/s. Auro Active Pharma Private Limited (a subsidiary of M/s. Aurobindo Pharma Limited). The unit is being established on 150 Acres of land (Survey Nos.349 to 353) in the Kakinada Special Economic Zone ( KSEZ ), an area prone to flooding. Floodwaters from nearby villages accumulate on this land for up to 30 days before draining into the sea. Raising the land by five feet to develop the facility will obstruct this natural water flow, causing severe flooding in surrounding areas like A.V. Nagaram, Kodada, and AK Mallavaram, leading to loss of crops, livestock, and potential loss of life.

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3. The further allegation is that the unit is located just 1.5 km from A.V. Nagaram and Kodada, and 1 km from Perumalaniuram Panchayat, affecting the people. Pollution from the pharmaceutical unit threatens the health of locals and endangers the livelihoods of the fishing community, with potential shutdowns of 30 hatcheries affecting 5,000-8,000 workers.

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4. In order to ascertain the genuineness of the allegations made in the letter petition, the Principal Bench has constituted a Joint Committee comprising of (i) Andhra Pradesh

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Page 2 of 8

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Pollution Control Board ( APPCB ) and (ii) District Magistrate – Kakinada District, to inspect the premises and submit a factual report, including the details of action taken (if any).

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5. Thereafter, the matter was transferred to this Bench and the same has been renumbered as Original Application No.04 of 2024 (SZ) .

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6. Pursuant to the directions of this Tribunal, the Joint Committee inspected the premises of M/s. Auro Active Pharma Private Limited on 07.02.203 and submitted a detailed report dated 21.03.2023 , stating that the Ministry of Chemicals & Fertilizers, Government of India, approved M/s. Aurobindo Pharma Limited under the Production Linked Incentive (PLI) scheme to produce critical Key Starting Materials (KSMs), Drug Intermediates, and Active Pharmaceutical Ingredients (APIs) like Penicillin G & 7-ACA, aiming to reduce import dependence. Accordingly, M/s. Auroactive Pharma Pvt. Ltd., a subsidiary of Aurobindo Pharma, plans to establish two bulk drug manufacturing units at A.V. Nagaram, Kakinada SEZ area viz., (1) M/s. Lyfius Private Limited (LPPL) (formerly M/s. Aurobindo Antibiotics Pvt. Ltd.) and (2) M/s. Qule Pharma Private Limited (QPPL) (formerly M/s. Auroactive Pharma Pvt. Ltd.).

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(I) M/s. Lyfius Private Ltd. (LPPL): The unit obtained the Environment Clearance (EC) on 29.07.2021 for the project to be established at about 230 Acres in Sy. No.350, 351, 353, 354 to 358, 361 to 375, 380 to 382 of A.V. Nagaram Village, Kakinada SEZ area. The particulars of the products, byproducts, and their proposed capacity were furnished in the report in detail. The unit also obtained the Consent to Establish (NOC) dated 09.04.2021 from the APPCB for common marine outfall to discharge the treated effluents, No Objection Certificate (NOC) dated 15.06.2021 from the Andhra Pradesh Coastal Zone Management Authority ( APCZMA ) for laying marine discharge lines and desalination plant intake pipelines and also the Consent to Establish (CTE) dated 12.01.2022 from the APPCB. Construction is ongoing, with production blocks in 1^st Phase, power plants, and

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desalination plants being developed. Initial work includes an Effluent Treatment Plant (ETP) of 12 MLD for Phase – I and guard ponds of 4 x 12 MLD. Regarding the common intake and marine outfall, the unit has completed the pipelines for Land Fall Point (LFP) into the Sea, as follows:-

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“a) Sea water intake for desalination plant - 47 MLD - 1

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km from LFP into Sea.

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b) Marine outfall pipeline for Desalination brine - 28 MLD

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1.25 km from LFP into Sea.

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c) Common LCP outfall pipeline (Multipurpose) - 32 MLD

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2 km from LFP into Sea.”

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(II) M/s. Qule Pharma Pvt. Ltd. (QPPL): The unit obtained the Environment Clearance (EC) on 29.07.2021 for the project to be established at about 153 Acres in Sy. Nos.349 to 353 of A.V. Nagaram Village, Kakinada SEZ area. The unit has also obtained the Consent to Establish dated 12.01.2022 from the APPCB and proposed to utilize a common marine intake and outfall system to discharge treated effluents along with treated effluents of M/s. Lyfius Private Limited. Construction is ongoing with piling work underway in an area of about 40 Acres, out of 153 Acres in total.

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7. The Joint Committee observed that the total area of A.V. Nagaram village is 6275.93 Acres. Of which, 1684.46 Acres is under paddy cultivation, 595.29 Acres is a dry land, the area under the fish tank is 496.36 Acres, Government land is 803.09 Acres and Kakinada Special Economic Zone ( KSEZ ) is 2696.73 Acres. The lands in Survey Nos. 349 to 353, leased to QPPL, were acquired for KSEZ in 2006 and had been used for agriculture before the SEZ establishment in 2007. Prior to the declaration as KSEZ, nearly 1160 Acres of paddy were under cultivation with Pithapuram Branch Canal (PBC), Yeleru and RRB Canals as sources of irrigation to these lands. After declaration as KSEZ, since 2007 farmers left the lands as barren and used as pasture lands without any cultivation. The particulars of the land viz., Survey number, extent, classification and pattadar name, as per the Settlement Register (Fair Adangal) were furnished in the report in detail.

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8. It is further observed by the Joint Committee that these are private lands and not designated for floodwater storage. The Jammeru drain passes through the village and no river or major canal passes through the A.V. Nagaram Village. The said Jammeru Drain, which runs along the outskirts of the proposed industry site, has been widened with no obstructions or encroachments. Floodwater from Yeleru Reservoir and Suddagedda/Konda Kalva drains flows through Pithapuram Branch Canal (PBC) and the surplus course of Uppu tank i.e. Khandi Kalva, which runs across the lands in Survey Nos. 349 to 353 and finally empties into the Jammeru Drain. M/s. Lyfius Pharma sought permission to realign Khandi Kalva to join Jammeru Drain at 7.34 km instead of 6.00 km, which was granted by the Water Resources Department, State of Andhra Pradesh on 14.06.2022, after considering the 100-year return flood of 131 cumecs (5000 cusecs) as per National Institute of Hydrology (NIH) report for Khandi Kalva. This realignment allows floodwater/backwater to be safely channelled into Khandi Kalva/Jammeru Drain without inundating the upstream side areas viz., tail end ayacut of A.V. Nagaram and Kodada Villages of Thondangi Mandal. One of the conditions, while according permission for diversion of Khandi Kalva drain, was that impounding of water in the agricultural fields of small farmers around the mentioned lands (i.e. Sy. Nos. 349 to 353) due to the formation of embankment along the diverted alignment of Khandi Kalva or reclamation of land shall be avoided by excavating catch drains around the boundary of these subject land and the drain water shall be allowed to free flow into the Khandi Kalva drain or Jammeru drain. Accordingly, M/s. Lyfius Private Limited has excavated along the approved alignment of the diverted Khandi Kalva drain with an improved carrying capacity of 131 cumecs (5000 cusecs) along with the catch drains. After completion of diversion work of the Khandi Kalva drain, there is no crop loss due to backwater or floodwater in any area around the M/s. Lyfius Pharma, even though Yeleru and Suddagedda drain was flooded for one week in the last season i.e. October 2022.

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9. Finally, the Joint Committee concluded that the lands in Survey Nos.349 to 353 (150 Acres) are private lands and not used for floodwater storage, refuting the complainants/applicants’

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claim. Both units viz., (1) M/s. Lyfius Private Ltd. (LPPL) and (2) M/s. Qule Pharma Private Ltd. (QPPL) have obtained the required Environmental Clearance from the MoEF&CC, NOC from APCZMA, and Consent to Establish from the APPCB before the construction activity commenced.

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10. The Andhra Pradesh Pollution Control Board (APPCB) also filed a report dated 12.04.2024 , reporting the status of both units. With regard to M/s. Qule Pharma Private Ltd. , it is stated that the unit has obtained Environmental Clearance dated 29.07.2021 for the manufacture of four bulk drugs and intermediates of the capacity of 1033.33 TPM and a Cogeneration Power Plant of 40 MW capacity. Further, the unit has obtained CTE dated 12.01.2022 and also the CTE (Change of Product Mix) dated 12.01.2024, as per which, the total permitted wastewater generation is 17520.9 KLD. The unit has obtained Consent to Operate (CTO) in Phase – I dated 18.03.2024, which is valid up to 31.01.2025. At the time of inspection, the unit was under trial runs and planning to start regular production from June 2024. In respect of M/s. Lyfius Private Ltd., it is stated that the unit has obtained Environmental Clearance dated 29.07.2021 for the manufacture of Penicillin G (1250 TPM capacity) and Glucose (15000 TPM capacity) and Co-generation Power Plant of 50 MW capacity. The unit has obtained CTE dated 12.01.2022 and also the Consent to Operate (CTO) in Phase – I dated 24.01.2024, which is valid up to 30.11.2024. The unit was under trial runs at the time of inspection and was planning to start regular production from June 2024.

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11. From the report of the Joint Committee and the APPCB, it is seen that the units viz., M/s. Lyfius Private Limited (LPPL) and M/s. Qule Pharma Private Limited (QPPL), complied with environmental regulations and had obtained the necessary Environmental Clearance (EC), No Objection Certificates (NOC), Consent to Establish (CTE), and Consent to Operate (CTO) for the construction and operation of the units from the competent authorities. The units had also implemented measures to address the concerns regarding effluent discharge, marine outfalls, and desalination intake pipelines.

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12. The Joint Committee report highlighted that the lands in question (Survey Nos.349 to 353 of A.V. Nagaram Village, Kakinada SEZ area, Thondangi Mandal) had been leased to M/s. QPPL and were originally agricultural lands, but after being declared part of the Kakinada SEZ, they were no longer used for cultivation. Floodwaters from surrounding areas, including the Yeleru Reservoir and Suddagedda/ Konda Kalva drains, were historically redirected through the Pithapuram Branch Canal (PBC) and Khandi Kalva. Following the approval of the diversion of Khandi Kalva, the floodwaters are now safely channelled into the Jammeru Drain.

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13. The Joint Committee also found that the area in question was not designated for floodwater storage, as claimed by the complainants/ applicants, and that the proposed pharmaceutical units had taken steps to ensure that their activities did not lead to flooding or loss of crops in the surrounding areas. The construction of catch drains and the realignment of Khandi Kalva had effectively mitigated flood risks.

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14. Furthermore, the report of the APPCB, detailing the status of both units, confirms that M/s. Qule Pharma Pvt. Ltd. and M/s. Lyfius Private Ltd. had obtained the necessary clearances/permissions. The units were under trial runs and were planning to begin regular production from June 2024.

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15. Upon careful examination of the reports filed by the Joint Committee and the APPCB, this Tribunal is satisfied that all necessary regulatory clearances have been obtained by M/s. Lyfius Private Ltd. and M/s. Qule Pharma Private Ltd. The environmental concerns raised by the complainants/applicants have been adequately addressed through the implementation of flood control measures and pollution control systems, including the proper disposal of treated effluents.

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16. The Joint Committee’s findings regarding the flood risk have been corroborated by the fact that the land in question is not used for floodwater storage and that the realignment of Khandi Kalva has effectively mitigated any potential flooding in the

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surrounding areas. Additionally, no evidence of crop loss or floodrelated damage has been reported post-completion of the realignment work.

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17. Given that all concerns raised in the letter petition have been addressed and the necessary compliance measures are in place, we find no merit in the applicants’ claims of imminent harm due to the establishment of the pharmaceutical units.

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18. In view of the above findings and the fact that no issues remain for further adjudication, it would be appropriate to close the matter.

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19. Hence, the Original Application [O.A. No.04 of 2024 (SZ)] is closed as no further issues remain for further adjudication. However, the APPCB is directed to keep a vigil and ensure regular monitoring of the units, at least once in six months, particularly with respect to pollution control, during their operation, to ensure compliance with the prescribed environmental standards.

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Sd/-

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Smt. Justice Pushpa Sathyanarayana, JM

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Sd/Dr. Vijay Kulkarni, EM

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O.A. No.04/2024 (SZ) 10^th January, 2025. Mn.

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A v. Nagaram v Andhra Pradesh Pollution Control Board

Case brief

What is this about?

What did the court decide?

A v. Nagaram v Andhra Pradesh Pollution Control Board

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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