An expert appraisal committee of the Union ministry for environment, forest and climate change has recommended environment clearance for an industrial park at Manallur and Soorapoondi villages in Gummidipoondi taluk, Thiruvallur, less than six km from Pulicat bird sanctuary. The Rs 3.64 billion project spread across 280 hectares will have to implement measures to conserve and protect local biodiversity as proposed by the Salim Ali Centre for Ornithology and Natural History (SACON).

The committee took note of the conservation plan prepared by SACON, which were also approved by the principal chief conservator of forest and the chief wildlife warden of Tamil Nadu. It suggested steps for protecting the lakes-wetland ecosystem within the industrial area and boundaries to be provided around these lakes. "The size of the mound shall not be less than 100sqm and has to be taken into consideration. It shall be according to the area of the lake and adequate for nesting and residing of the migratory birds," the committee said, issuing a slew of conditions to Sipcot.

In 2022, National Green Tribunal (NGT) suspended the environment clearance following a petition from residents of Manallur. The petitioners contended that the project site was only 5.5km from Pulicat lake bird sanctuary, which is a Ramsar-protected site. They also said that the environment impact assessment report submitted by the project proponent suppressed facts and lacked sufficient information and clarity, but still, the expert appraisal committee recommended the project.

According to the latest conservation plan submitted to the committee, Sipcot will allocate Rs 1crore towards establishment of artificial wetlands for aquatic-dependent flora and fauna, creating avenue tree plantations, butterfly gardens, pollinator microhabitats, green belts, and wetland management activities in Pallavada lake (Pallavaram).

Sipcot has also allocated 1.775 billion towards an environment management plan, which includes corporate environment responsibility initiatives. The proposal includes the creation of a green belt over 07 hectares, representing 38% of the developable area, with the planting of 3.34 lakh trees.