MP Birla Group flagship company Birla Corporation Ltd on Tuesday (October 10) said the company is facing a ₹8.42-crore penalty for excess limestone production in Madhya Pradesh in the period 2000-01 to 2006-07 without the requisite environmental clearance as stipulated by the Environmental Impact Assessment (EIA) notification of 1994.

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The company recently received an order, dated October 9, 2023, from the Office of Collector (Mining), Satna in Madhya Pradesh.

The company has explained that it did not obtain environmental clearance during that period due to the ambiguity present in the provisions of the EIA Notification of 1994.

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It's worth noting that the clarity on these provisions only emerged later, following the principles established in the Common Cause judgment delivered by the Supreme Court on August 2, 2017.

While the company didn't secure environmental clearance during the mentioned timeframe, it asserts that it did maintain valid consent to operate its mines from the State Pollution Control Board.

This underscores the complexity of the situation, as the company had adhered to state-level regulations but now faces penalties for failing to meet central level environmental clearance requirements.

Upon receiving the order from the Office of Collector (Mining), Birla Corporation Ltd swiftly initiated a review of the situation. The company is diligently evaluating its next steps in response to this development.

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Shares of Birla Corporation Ltd ended at ₹1,256.50, up by ₹3, or 0.24 percent, on the BSE.

(Edited by : Shoma Bhattacharjee)