Manali Petrochemicals Ltd has stopped operations at its Plant 1 near Chennai following a directive from the Central Pollution Control Board.

The company has received a notice from the Central Pollution Control Board under Section 5 of the Environment Protection Act, 1985 seeking to stop operations of Plant 1 citing certain shortcomings, said a filing to the National Stock Exchange.

CPCB said its team had observed non-compliance in certain areas during its inspection in early November. Hence, it directed to close down the Plant 1 Manali Petrochemicals with immediate effect till compliance is achieved and permission obtained from the CPCB to resume operations, according to CPCB’s order.

The company is addressing the issues and also has taken necessary actions for suspension/revocation of the order.

Pending outcome of these actions, the operations of the Plant 1 have been stopped in compliance with the said notice. It is little early to estimate the losses on account of the shut down.

However, operations of Plant 2 remain unaffected.

The ₹634-crore company specialises in the manufacture of propylene glycol, polyether polyol and related substances. It is the only Indian manufacturer of propylene oxide, the input material for the aforesaid derivative products, according to its latest annual report.

MPL also produces propylene glycol mono methyl ether, an environment-friendly solvent used in paints and coatings and electronics industries. They also find use in oil exploration and drilling operations.