India Supreme Court greenlights Chemplast’s VCM project

11 March 2010 03:32  [Source: ICIS news]

SINGAPORE (ICIS news)--India’s Supreme Court has dismissed four petitions challenging a pipeline approval, paving the way for polyvinyl chloride (PVC) producer Chemplast Sanmar to complete its capacity expansion, according to court documents published late on Wednesday.

The producer had received approval from the Tamil Nadu Public Works Department in September 2006 to lay a 2.5-km underground pipeline that would transport imported vinyl chloride monomer (VCM) from the jetty to its new PVC plant, both of which were located in the Cuddalore district.

Four petitions challenging the approval on environmental grounds were filed over the next two years, court documents showed.

PVC is produced by polymerising VCM, a hazardous gas.

The court held that the project was commissioned only after the necessary approvals were obtained and that it would “not be in the interest of justice…now to interfere with the project.”

Chemplast’s capacity expansion project, which would increase its PVC capacity by 200,000 tonnes/year, had been blighted with delays and by various litigation challenges. It was unclear at the time of writing when the pipeline would be completed.

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By: Ng Hun Wei
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