Lok Sabha Question No. 85 (STARRED), answered on 2026-02-05
Subject: Contamination of Drinking Water due to Petroleum Leakage
Ministry: PETROLEUM AND NATURAL GAS
Asked by: Shri K Sudhakaran

## LOK SABHA STARRED QUESTION NO. *85 TO BE ANSWERED ON 5 TH  FEBRUARY, 2026

## Contamination of Drinking Water due to Petroleum Leakage

## * 85. Shri K Sudhakaran :

## पेůोिलयम और ÿाक ृ ितक गैस मंýी

Will the Minister of PETROLEUM AND NATURAL GAS be pleased to state:

- (a) whether the Government has taken cognizance of the serious environmental and public health crisis  in  Pallikunnu  under  Kannur  district  of  Kerala  where  drinking  water  wells  have  been contaminated  with  mineral  oil  due  to  a  suspected  leakage  from  a  retail  outlet  of  Indian  Oil Corporation Limited (IOCL) and if so, the details thereof;
- (b) the  specific  steps  taken  by  IOCL  to  conduct  integrity  testing  of  its  underground  storage tanks and associated infrastructure in order to identify the source of the breach;
- (c) the details of the immediate remedial measures and the long-term restoration plans initiated by the Government to decontaminate the affected wells and to ensure the provision of safe drinking water to the residents of the densely inhabited area; and
- (d) whether  the  Government  intends  to  fix  accountability  for  the  said  environmental  negligence and to establish new preventive protocols for the operation of petroleum outlets located in close proximity to residential water sources so as to avoid recurrence of such incidents and if so, the details thereof?

## ANSWER

## पेůोिलयम और ÿाक ृ ितक गैस मंýी ( ®ी हरदीप िसंह पुरी )

## MINISTER OF PETROLEUM AND NATURAL GAS (SHRI HARDEEP SINGH PURI)

- (a) to (d) A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE LOK SABHA STARRED QUESTION NO. 85 ASKED BY SHRI K SUDHAKARAN TO BE ANSWERED ON 05 TH  FEBRUARY, 2026 REGARDING 'CONTAMINATION OF DRINKING WATER DUE TO PETROLEUM LEAKAGE'.

(a) to (d) Indian Oil Corporation Limited (IOCL) has informed that it received a complaint on 14.12.2025  regarding  contamination  of  four  water  wells  with  mineral  oil  from  a  Retail  Outlet (RO) operated by the Central Prison and Correctional Home Kannur, Government of Kerala. The said wells are located approximately 150 meters away from the RO at Pallikunnu, Kannur District, Kerala.  Reports  dated  30.12.2025  of  tests  conducted  by  Kerala  State  Pollution  Control  Board suggested contamination of said water wells with traces of hydrocarbons (Petrol and Diesel).

Acting  promptly  on  the  said  complaint,  hydrotesting  of  the  High  Speed  Diesel  (HSD)  product pipeline was carried out on 16.12.2025 and no leakage was observed. Subsequently, hydrotesting of  the  Motor  Spirit  (MS)  /Petrol  pipeline  was  conducted  on  18.12.2025,  during  which  pressure drop/pin-hole  leakage  was  detected.  Sale  of  Petrol  from  dispensing  units  connected  with  the affected Petrol pipeline was immediately stopped. All product pipelines of MS and HSD including affected pipeline were replaced by 21.12.2025. Sale of MS was resumed on 23.12.2025.

Subsequently,  sale  of  MS  &  HSD  was  suspended  on 21.01.2026 based on  directions of Kerala State Pollution Control Board. Hydrotesting of all underground product storage tanks was carried out under the supervision of a PESO-authorized competent person, officials from Kerala Pollution Control Board, Superintendent of Jail and representative(s) of the affected residents. No leakage was found in any of the storage tanks.

Kerala State Pollution Control Board has since directed IOCL to provide secondary containment in the form of double walled tanks or concrete protective walls around the underground storage tanks and to ensure that all  safety  and environmental conditions  are satisfied by the RO before allowing resumption of operations. IOCL has initiated necessary steps to construct concrete wall around the storage  tanks  and  for  flushing  of  contaminated  water  wells.  IOCL  has  also  ensured provision of new water storage tanks, pipeline connections and packaged water supply to affected households.

Preventive protocols to avoid such occurrences are already in place. For establishment of a new Retail Outlet, under Rule 144 of Petroleum Rules 2002, OMCs make an application for grant of No  Objection  Certificate  (NOC)  with  proposed  layout  of  Retail  Outlet  to  District  Magistrate (DM). DM NOC is issued after duly consulting various departments viz. Revenue, Police, Fire, PWD, Pollution, Local Development Bodies etc. Simultaneously, the RO layout drawing is also submitted to PESO for obtaining construction approval. Depending on location, NOC and access permission  from  NHAI  with  requisite  details/layout  are  also  obtained.  After  completion  of construction of the RO, an application is made to PESO for grant of Final License required for commissioning of RO.  In respect of outlets located in close proximity to residential water bodies, applicable Central Pollution Control Board (CPCB) guidelines are also required to be complied with before commissioning of RO. The Retail Outlet under reference was commissioned only after following the applicable protocols.

With  regard  tofixing  of  accountability  in  this  incident,  IOCL  has  sought  explanation  from  the dealership i.e. the Central Prison and Correctional Home Kannur, Government of Kerala for not reconciling daily stock on regular basis and non-reporting of abnormal stock variation.

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