News ArticleNeogen Chemicals Obtains Revocation of Production Suspension and New Consent from Gujarat Pollution Control Board for Dahej SEZ Plant
Revocation order received on November 7, 2026, along with provisional consent valid through March 19, 2030, following 2025 fire incident
Neogen Chemicals receives revocation of the Gujarat Pollution Control Board's fire-related production suspension for its Dahej SEZ plant and obtains a provisional consent valid until March 19, 2030, enabling resumption of industrial activities under new environmental compliance terms.
Neogen Chemicals Limited
Legal / Regulatory
Neogen Chemicals Limited has secured a revocation order from the Gujarat Pollution Control Board (GPCB) lifting the suspension imposed following a fire incident at its Multi-Purpose Plant 3 facility in Dahej SEZ. The GPCB also granted a provisional consent for manufacturing activities at the site valid until March 19, 2030, enabling the company to resume operations subject to compliance with environmental regulations.
The fire incident occurred on March 5, 2025, impacting the company's Multi-Purpose Plant (MPP3), warehouse, and tank farms at Dahej SEZ, which led GPCB to suspend operations and impose a direction with a compensation cost and bank guarantee.
Following inspections and compliance confirmations from the Department of Industrial Safety and Health (DISH) and GPCB, the earlier direction restricting the utilization of the affected plant was revoked on November 7, 2026, with conditions including adherence to submitted undertakings and consent to operate under amended environmental terms.
GPCB issued a provisional consent order (CC&A amendment) permitting the company to set up industrial plant activities for manufacturing specific products at the Dahej SEZ facility. This consent is valid from November 7, 2026, through March 19, 2030, and requires compliance with various pollution control and environmental protection statutes and rules.
In the interim period, Neogen Chemicals installed a replacement plant (MPP-5) which is currently under trial production adjacent to the affected site and has applied for corresponding consent amendments for this facility.
Production at the original affected plant remains suspended, and the location currently comprises open land awaiting operational resumption under the new consent.
Highlights
- Fire incident at Dahej SEZ MPP3 facility on March 5, 2025, led to production suspension.
- GPCB imposed Environment Damage Compensation cost of Rs. 34.60 lakhs and Rs. 7.5 lakh bank guarantee.
- Revocation of production suspension received from GPCB on November 7, 2026.
- Provisional consent to operate granted by GPCB, valid until March 19, 2030.
- Company installed new MPP-5 plant now under trial production at Dahej SEZ.
- Revocation subject to compliance with submitted undertakings and environmental regulations.
Key Data Snapshot
What happened
- A fire incident on March 5, 2025, at Neogen Chemicals' Multi-Purpose Plant 3 (MPP3) in Dahej SEZ caused environmental impact resulting in a production suspension by Gujarat Pollution Control Board (GPCB).
- GPCB issued a direction under the Air (Prevention and Control of Pollution) Act, 1981, suspending the use of the affected plant and imposing monetary penalties and compliance guarantees.
Regulatory and governance context
- GPCB’s direction was issued under Section 31 A of the Air Act and included an Environment Damage Compensation cost and a bank guarantee for compliance assurance.
- Department of Industrial Safety and Health (DISH) revoked its earlier restrictions on July 6, 2026, following inspection and compliance by Neogen Chemicals.
- Following compliance and inspection, GPCB revoked the earlier direction on November 7, 2026, with conditions to adhere to previously submitted undertakings and environmental consent requirements.
Next milestones
- Neogen Chemicals installed a replacement plant (MPP-5) at Dahej SEZ, currently under trial production.
- The company applied for CC&A amendment for this MPP-5 plant to operate under environmental consent.
- The provisional environmental consent for the site is valid until March 19, 2030, subject to continued regulatory compliance.
- Production/operation at the original MPP3 affected plant remains suspended awaiting further regulatory approvals.
Highlights
- Fire incident at Dahej SEZ MPP3 facility on March 5, 2025, led to production suspension.
- GPCB imposed Environment Damage Compensation cost of Rs. 34.60 lakhs and Rs. 7.5 lakh bank guarantee.
- Revocation of production suspension received from GPCB on November 7, 2026.
- Provisional consent to operate granted by GPCB, valid until March 19, 2030.
- Company installed new MPP-5 plant now under trial production at Dahej SEZ.
- Revocation subject to compliance with submitted undertakings and environmental regulations.
Disclosures
- Air (Prevention and Control of Pollution) Act, 1981
- Water (Prevention and Control of Pollution) Act, 1974
- Environment (Protection) Act, 1986
- Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016
Source Information
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