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Ch. R. S. Sarma

LNG pipelines at the Kakinada port... The terminal is banking on its LNG loading facilities to be its USP, but the complex is running into several environment clearance problems.

IN SPITE of the initial hiccups in privatisation, the State Government is set on developing Kakinada as a major port. The proposed mega LNG terminal, awaiting environmental clearance, is said to be one of the key projects in the development of the port. "LNG is the fuel of the future and this terminal is going to be one of the most important on the east coast," says an official spokesman.

There are, however, a few voices against the terminal on ecological grounds, and there is also dissatisfaction with the State Government that it is not being open on the ecological implications of the project, especially with regard to the coastal regulatory zone (CRZ) regulations.

The agreement for the project was signed between the AP Government and the Kakinada Indian Oil Consortium (KIOCL) in Hyderabad during the Partnership summit, with the KIOCL consisting of Indian Oil Corporation, BP Asia Pacific Inc, Petronas and Cocanada Port Company Limited (now renamed Kakinada Seaports Limited).

Originally, it was proposed that the terminal would be set up on Hope Island, but with the refusal of the Ministry of Environment and Forests to clear it, the proposed site has been shifted to the shore. But even on the shore, it appears, the project has to cross many hurdles.

Dr T. Rajyalakshmi, the former director of the Central Institute of Brackish Water Aquaculture (CIBA) and the president of the local Society for Promotion of Integrated Coastal Areas Management (SPICAM), says: "I am glad Hope Island, so critical for the survival of the Kakinada town, has been left alone. But even on the shore, the project has to properly sited, beyond 500 metres, and there should be no relaxations in the rules. Most of the projects on the Kakinada shore are dangerously close to the coastline. To give an example, the Spectrum power plant is in clear violation of the CRZ rules, though the land for it has been sanctioned by the Government department."

She complains that the State Government is not transparent in signing the agreements. The public is not taken into confidence and the private companies are not parting with the crucial ecological impact studies. "Kakinada bay is very shallow and it is doubtful whether it can be developed into a major port by further dredging. The ecological implications of any further construction of berths are to be studied very carefully. The stability of Hope Island, serving as a natural barrier against cyclones and protecting the town, is the most critical issue. The Coringa mangrove system should also not be disturbed. Already, there are disturbing signs that the mangroves are under threat. Therefore, I feel, the State Government should tread very cautiously," she adds.

Echoing similar sentiments, Dr T. Patanjali Sastry, of the Centre for Environment at Rajahmundry, is critical of the ruling Telugu Desam Party for going ahead with the projects at Kakinada, utterly unmindful of the ecological implications. "Hope Island, aptly named, is the hope of Kakinada. It should not be touched under any circumstances. The ruling party, at its recent party conclave, has sought the speedy development of the Kakinada-Vizag special economic zone and the promotion of eco-tourism on the Hope Island. Eco-tourism on the island can be ruinous. Equally disturbing is the proposal to build a coastal highway from Tada, in Nellore district, to Icchapuram. It will have long-term adverse consequences on the future of 1,200 coastal villages," he argues.

He said the original proposal to have the LNG complex on the island had been shelved, but "even on the shore it may not be desirable to have a hydro-carbon terminal at Kakinada. In any case, no rules should be bent or circumvented for the purpose." He urged the Union Government to give up the move to bring down the CRZ limit from 500 metres to 200 metres for inland water bodies.

Dr Sastry also urged the State Government not to ignore the 10,000-odd fishermen dependent on the old port of Kakinada for their livelihood in its hasty bid to develop the new port. "There should be no diversion of the traditional cargoes from the old port. It will cause widespread social unrest," he said.

Both the environmentalists have called for a wider debate on the LNG terminal and other projects, with the participation of all sections — the industry, the government, peoples' representatives, NGOs and ecologists. It is proposed to invest Rs 3,000-4,000 crore initially in the LNG project and, at a later stage, about Rs 18,000 crore after the completion of the power project.

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