The inference drawn by the new report is not correct. The present government has not cancelled fine of Rs. 200 Crores. The fact is that the Ministry in April, 2014 noted that its show cause notice for creation of Environment Relief Fund (ERF) was not backed by any law under EP Act, 1986 and is not legally correct.

The then Government in 2013 had issued a show cause notice to M/s Adani Port and SEZ Ltd. based on Sunita Narayan report for creation of ERF @ 1% of project cost or Rs. 200 crore whichever is higher for remediation of environmental damage in Mundra, for protection of marine ecology, mangrove, restoration of creeks etc.

However, the then government in April, 2014 made a noting declaring creation of ERF as not supported by any Law and therefore it noted that ERF is not legally correct.

The present government in September, 2015 after having satisfied with the necessity to undertake restoration of degraded environmental components and further conservation as recommended by Sunita Narain Committee directed for more stringent conditions with open ended financial commitment by APSEZL for financing the study; restoration and integrated conservation for protection of creeks, mangrove areas, conservation of Bocha island

This decision of the Ministry is much more stringent than asking for Rs.200 crore from APSEZL because here in this case whatever has been recommended by Sunita Narain Committee for damage restoration and further conservation has to be borne by APSEZL which otherwise was limited to Rs.200 crore. It is amply clear that MoEF&CC has not withdrawn its demand for Rs.200 crore restoration fund. This government has passed an order in a legally correct framework and also imposed more serious responsibility upon the project proponent without any cost limit.