Tamil Nadu Government Initiates ₹112 Crore Livelihood Compensation Disbursement
The Tamil Nadu government has officially commenced the distribution of a substantial ₹112 crore livelihood compensation package to 2,163 residents of Nagapattinam district. These individuals have been significantly impacted by the massive expansion project of the Chennai Petroleum Corporation Limited (CPCL) oil refinery.
First Phase Distribution Ceremony Held
In a significant development, School Education Minister Anbil Mahesh Poyyamozhi personally distributed compensation orders to the first group of 60 beneficiaries on Tuesday. This initial phase involves a total disbursement of ₹3 crore, with each recipient receiving ₹5 lakh as part of the state's commitment to fair rehabilitation.
Background of the CPCL Refinery Expansion
The CPCL's Cauvery Basin Refinery, originally established in Panangudi, Nagapattinam district, back in 1993, is undergoing a monumental transformation. The expansion project, which received its foundation stone from Prime Minister Narendra Modi on February 17, 2021, aims to dramatically increase the refinery's capacity.
The ambitious plan involves scaling up production from one million metric tonnes to nine million metric tonnes, representing one of the largest industrial investments in the region with a projected cost of ₹31,500 crore.
Land Acquisition and Subsequent Demands
To facilitate this expansion, CPCL acquired hundreds of acres of land from farmers and landowners across three key villages:
- Panangudi
- Narimanam
- Gopurajapuram
While initial land compensation was provided under the Land Acquisition Act, affected communities—including farmers, landless tenants, and agricultural workers—pressed for additional livelihood compensation from the state government. Their demands were based on provisions within the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act.
Administrative Process and Public Protest
Beginning in 2024, the Nagapattinam district administration and revenue department undertook multiple comprehensive surveys to identify all eligible beneficiaries. However, significant delays at various administrative levels led to growing frustration among the affected villagers.
This frustration manifested in repeated public demonstrations, including:
- Organized protests
- Public demonstrations
- A boycott of the 2024 general election
These actions underscored the urgency of resolving the compensation issue and highlighted the social impact of large-scale industrial projects on local communities.
Final Beneficiary List and Future Disbursements
After extensive verification processes, authorities have finalized a comprehensive list of 2,163 eligible beneficiaries. According to official sources, the remaining recipients beyond the initial 60 will receive their compensation in phased disbursements over the coming months, ensuring systematic implementation of the rehabilitation package.
Official Presence at Distribution Ceremony
The compensation distribution ceremony witnessed participation from several key officials, demonstrating the government's commitment to transparent implementation. Attendees included:
- Nagapattinam Collector P. Akash
- TFDC Chairperson N. Gowthaman
- Nagapattinam MLA J. Mohamed Shanavas
- Kilvelur MLA V.P. Mali
- Various other district administration officials
This coordinated effort represents a significant step toward addressing the legitimate concerns of communities affected by industrial development while balancing economic growth objectives with social welfare responsibilities.
