Nayachar Chemical Hub, India


The local left front government of West Bengal had proposed to set up a Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) in 2005 following the resistance resistance at Nandigram where it was originally planned. The island, however, came under the coastal regulation zone where industries were not permitted under the environment rules.

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Basic Data
NameNayachar Chemical Hub, India
ProvinceWest Bengal
SiteEast Midnapore
Accuracy of LocationHIGH local level
Source of Conflict
Type of Conflict (1st level)Industrial and Utilities conflicts
Type of Conflict (2nd level)Chemical industries
Specific Commodities
Crude oil
Chemical products
Project Details and Actors
Project Area (in hectares)4,900
Level of Investment (in USD)3000000000
Type of PopulationRural
Potential Affected Population10,000
Start Date2005
Company Names or State EnterprisesNew Kolkata International Development Pvt. Ltd - 50 joint venture between Mukherjee's Universal Success Enterprises Ltd—a company registered in Singapore—and Indonesia's Salim Group. Real estate developer Unitech Ltd also had minority equity interest in NKID
Relevant government actorsWest Bengal government, Trinamool Congress Party, Union Commerce Ministry
The Conflict and the Mobilization
Intensity of Conflict (at highest level)MEDIUM (street protests, visible mobilization)
When did the mobilization beginPREVENTIVE resistance (precautionary phase)
Groups MobilizingLocal ejos
Local government/political parties
Trinmool Congress party
Forms of MobilizationDevelopment of a network/collective action
Development of alternative proposals
Land occupation
Public campaigns
Street protest/marches
Trinamool Congress had opposed the Nayachar project vociferously. While the party came in power, Mamata Banerjee government on Friday scrapped the proposed petroleum, chemicals and petrochemicals investment region (PCPIR) at Nayachar in East Midnapore district, citing environmental reasons.
Environmental ImpactsPotential: Air pollution, Biodiversity loss (wildlife, agro-diversity), Floods (river, coastal, mudflow), Loss of landscape/aesthetic degradation, Soil contamination, Soil erosion, Oil spills, Deforestation and loss of vegetation cover, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Groundwater pollution or depletion, Large-scale disturbance of hydro and geological systems, Reduced ecological / hydrological connectivity, Mine tailing spills
Socio-economic ImpactsPotential: Increase in Corruption/Co-optation of different actors, Displacement, Increase in violence and crime, Lack of work security, labour absenteeism, firings, unemployment, Loss of livelihood, Militarization and increased police presence, Specific impacts on women, Land dispossession, Loss of landscape/sense of place
Project StatusStopped
Pathways for conflict outcome / responseEnvironmental improvements, rehabilitation/restoration of area
Project cancelled
Development of AlternativesTrinamool Congress Government has proposed set up an eco-tourism hub in Nayachar in place of the proposed Petroleum Chemical and Petrochemicals Investment (1) .
Do you consider this as a success?Yes
Why? Explain briefly.Industry minister of West Bengal Mr. Partha Chatterjee said in the West Bengal Assembly that the government would not allow a chemical hub in the state because of the danger of air and land pollution and threat to the livelihood of fishermen.

Government has proposed set up an eco-tourism hub in Nayachar in place of the proposed Petroleum Chemical and Petrochemicals Investment (1) .

People involved in the fishing business, however, said: 'Nayachar is around 5.6 metres above the average mean sea level and gets regularly hit by tidal waves as high as 4-5 metres. The ground is risky for any sort of industrial project and unless the proposed project has definitive water disposal plan to deliver the residue wastes downstream which will not harm the marine lives, it will be difficult to maintain the environmental and ecological balance of the island.' (2)
Sources and Materials

Coastal Regulation Zone (CRZ)


(1) Mamata threatens to derail Nayachar chemical hub
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(2) Nayachar to get eco-friendly hub
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West Bengal government scraps chemical hub at Nayachar
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Nayachar chemical hub unprofitable: NKID chief
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No chemical hub in Nayachar, reiterates Mamata
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Pitfalls in the Nayachar Chemical Hub
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Other CommentsOn January 07, 2011 the Indian Ministry of Environment and Forests (MoEF) released Coastal Regulation Zone (CRZ) Notification 2011 to replace CRZ Notification of 1991
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ContributorSwapan Kumar Patra
Last update24/06/2014