Issue of Closure Direction by Gujarat Pollution Control Board ("GPCB/Board")
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The Gujarat Pollution Control Board (GPCB) has ordered Chemcrux Enterprises to close operations at its plant in Plot No. 4712-14, GIDC Estate, Ankleshwar, Bharuch, under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974. The order dated September 9, 2025 was issued because a water sample taken from the GIDC storm water drain was found to be contaminated beyond the permitted limits. The company must submit a bank guarantee of Rs. 3.5 lakh for compliance assurance and may also have to pay an interim environment damage compensation, the amount of which will be decided later. The company says it has already taken corrective steps and is blaming recent heavy rains in Bharuch district for the contamination. It plans to respond to the GPCB and seek reconsideration of the order.
This is a regulatory shutdown of a key manufacturing plant, which could disrupt production and revenue until the order is lifted. The Rs. 3.5 lakh bank guarantee is small, but the bigger concern for shareholders is the uncertain duration of the closure and any future environment damage compensation that may be imposed, both of which could affect profitability.