US Supreme Court to Hear Dispute over Power Plant in Gujarat

US Supreme Court agreed to take up appeal by Indian villagers against power plant in Gujarat near port city of Mundra in Gujarat, funded by US-based international finance institution, which has allegedly resulted in environmental damages.

Map of Mudra Power Plant
  • Villagers, led by Budha Ismail Jam, along w⟋several other farmers & fishermen, allege that coal-fired Tata Mundra Power Plant has resulted in widespread environmental damages.
  • Villagers argue that Tata Mundra Power Plant failed to comply w⟋international environmental standards. This has resulted in devastation of local environment.

Why is US Involved?

  • Washington DC-based International Finance Corporation, financing wing of World Bank, has provided $ 450 million in financial assistance to project.
  • It would decide whether IFC enjoyed immunity under 1945 International Organisations Immunity Act- lower courts dismissed petition arguing that IFC enjoyed immunity, like other foreign countries, under 1945 International Organizations Immunity Act.

1945 International Organisations Immunity Act

  • International organisations play ever-increasing role in economic landscape of this country & world.
  • International Organisations Immunity Act gives them absolute immunity from any kind of lawsuit - no matter how strictly commercial their activities; no matter how egregious their actions; & no matter views of Executive Branch.

Tata Mudra Power Plant

  • Coastal Gujarat Power Limited (CGPL) , Tata Power՚s wholly-owned subsidiary, has implemented 4000 MW (800 × 5 units) UMPP near port city of Mundra in Gujarat.
  • UMPP is India՚s 1st 800 MW unit thermal power plant using supercritical technology, & is arguably most energy-efficient, coal-based thermal power plant in country.
  • Project will supply power to 5 states namely Gujarat, Rajasthan & Maharashtra in Western India & to Haryana & Punjab in Northern India.

Highlights of Project

  • India՚s 1st 4000 MW private power project near Mundra Port, Gujarat
  • India՚s most energy efficient plant using supercritical technology
  • Main power generation equipment sourced from Korea & Japan
  • Creation of 5000 construction jobs & 700 operations-oriented jobs
  • Plant w⟋lower Greenhouse Gas (GHG) emissions
  • Mundra Project will meet 2% of India՚s power needs
  • Consumers in 5 of India՚s power starved states will benefit from this project
  • All 5 Units (Units 1, 2,3, 4, & 5) are commissioned

Examrace Team at Aug 21, 2021