Why are villagers in Konkan opposing the proposed multi-billion dollar Ratnagiri Refinery project in Maharashtra? Premium

How the proposed refinery project is garnering protest due to concerns of environmental pollution and loss of livelihood

The story so far: On April 25, the Maharashtra government started conducting soil testing at Rajapur tehsil’s Barsu village in the coastal Ratnagiri district to know if the site was suitable for the proposed multi-billion dollar Ratnagiri Refinery and Petrochemicals Limited (RRPCL) project which is touted as the world’s largest single location refinery complex. As of April 2022, India’s oil refining capacity stood at 251.2 million metric tonnes per annum, making it the second-largest refiner in Asia and the fourth largest in the world.

The project, which is expected to have a capacity of 60 million tonnes per annum, is a joint venture between Saudi Aramco, Abu Dhabi National Oil Company (ADNOC), Indian Oil Corporation Limited, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited. The project was initially mooted in 2014 and is estimated to cost around rupees three lakh crore. Saudi Aramco and ADNOC, as per an agreement signed in 2018, hold a 50% stake. They also agreed to jointly build and develop the refinery and petrochemicals complex. Besides fuel, the project also proposes to develop various downstream petrochemicals to meet India’s fast-growing petrochemical demand. Initially, the project was supposed to come up at Nanar, about 20 kilometres from Barsu. However, due to strong opposition from the locals, environmental activists and the Shiv Sena, the project was denotified in 2019.

Hundreds of residents from Barsu-Solgaon and neighbouring villages are protesting the government’s decision as they are concerned about the potential impact on the environment and the livelihoods of local communities. The project site is in a region that is ecologically sensitive, with several species of flora and fauna endemic to the area. The Konkan region has large mango orchids as well as jack fruit and cashew plantations. The project would require 6,200 acres of land from 14 villagers – 12 in Ratnagiri and two in neighbouring Sindhudurg districts.The villagers also expressed concern about the potential health hazards posed by the refinery and petrochemical unit, which is expected to emit a large amount of pollutants. According to locals, Konkan already suffers from air pollution due to the presence of coal-fired power plants.

“Once the project commences, mango orchards, cashew and other plantations in the region will be destroyed within months due to chemicals. Our opposition to the project is on bigger issues concerning the environment and the possible damage this project would do to the Konkan coastline,” Satyajit Chavan of Konkan Vinashkari Prakalp Virodhi Samiti said. Many farmers expressed concern that they would lose their source of livelihood if their land is acquired for the project. Locals say that the project should be shifted to more arid zones in the State like Marathwada and Vidarbha.

The Shiv Sena (UBT) (erstwhile Shiv Sena) has been a vocal opponent of the project as the Konkan region is Sena’s traditional bastion and with opposition from locals, the party feared any attempt to go ahead with the project could anger the voters, ahead of 2019 Lok Sabha and Assembly elections.

As many as 14 gram panchayats passed resolutions to oppose the project and alleged that ‘outsiders’ bought lands, including barren lands in these villagers. Outsiders who purchased land only to get benefited from this project are readily agreeing to sell land to the government.

Though the alliance of Bharatiya Janata Party and Shiv Sena was in power with Devendra Fadnavis as Chief Minister when was project was signed, the Sena leader, Uddhav Thackeray, said that people of Ratnagiri should have the final say on whether the project should be allowed to go ahead. “The Shiv Sena will go by the people’s wish. If people are against it, the Sena will not allow the project,” Mr. Thackeray said. Following pressure from the alliance partner Mr. Fadnavis was forced to denotify the project in February 2019. Scrapping the Nanar project was one of the conditions when both parties finalised the seat-sharing formula.