Bharat Petroleum Corporation Limited (BPCL) has been directed by the National Green Tribunal to pay Rs. 1 crore in environmental compensation. The penalty follows a dispute regarding the delayed installation of Vapour Recovery Systems (VRS) at the company’s storage facilities. While the company previously contested the timeline set by the authorities, it has confirmed that all 41 storage locations were successfully equipped with the mandatory systems as of March 2025.
Tribunal Order Details
Following a long-standing directive regarding the implementation of Vapour Recovery Systems (VRS), the National Green Tribunal has ordered Bharat Petroleum Corporation Limited to deposit Rs. 1 crore. The compensation stems from the company’s failure to meet the originally prescribed installation deadlines for its nationwide storage network, which were initially set for completion by March 2024.
Operational Compliance Status
Despite the legal proceedings, the company has confirmed that it has fulfilled its infrastructural obligations. As of March 2025, the mandatory VRS technology has been fully installed across all 41 storage locations operated by the company. This move ensures that the storage network now aligns with the required environmental safety standards for vapour emission control.
Financial Impact
The company has evaluated the financial implications of this ruling and has determined that the payment of this Rs. 1 crore penalty will have no material impact on its overall financial health, operational activities, or business stability.
Source: BSE
