The rejection came following a report submitted by a team of the expert appraisal committee (EAC) members which during an inspection found that project proponent Ind-Bharath Ltd had obtained environment nod by "concealing" factual information in respect of various issues including the sanctuary location, ministry officials said.
The proposed project in Hankon in Karwar taluk had received environmental clearance subject to certain conditions in June last year.
However, locals, including members of the Hankon fishing community, had raised fears of loss of livelihood due to environmental problems likely to be caused by its operation. They claimed the plant was barely 3.5 km from Goa's southernmost wildlife sanctuary.
In fact, the residents there too filed two separate appeals before National Environment Appellate Authority (NEAA) against the project forcing the Environment Ministry to send a team to verify the allegations.
The team said the project proponent has given "false information" about the location of the wildlife sanctuary and there was a contradiction between data furnished by the firm and the actual position of various aspects.
The team found that the firm has concealed details on "the location of discharge of cooling water, impact of intake and outfall on the fisheries, presence of patches of dense forest in and around the project site, including mangroves."
Taking serious note of the matter, the ministry not only cancelled environment clearance but also the Coastal Regulation Zone (CRZ) nod sanctioned to the company.