**Executive Summary**
This document is the official response from the Minister of Petroleum and Natural Gas to a Lok Sabha Starred Question regarding the contamination of drinking water wells in Pallikunnu, Kannur District, Kerala, due to a suspected leakage from an Indian Oil Corporation Limited (IOCL) retail outlet. The response details the actions taken by IOCL and the Kerala State Pollution Control Board, as well as existing preventative protocols. IOCL has sought explanation from the dealership regarding accountability for the incident.
**Key Points / Main Content**
* **Incident:** Contamination of four water wells with mineral oil was reported on 14.12.2025, originating from a retail outlet operated by the Central Prison and Correctional Home Kannur, located approximately 150 meters away. Reports confirmed the presence of hydrocarbons (Petrol and Diesel) in the water wells.
* **Immediate Actions by IOCL:**
* Hydrotesting of pipelines was conducted: High-Speed Diesel (HSD) pipeline on 16.12.2025, Motor Spirit (MS)/Petrol pipeline on 18.12.2025 (revealing a pin-hole leakage).
* Sale of Petrol from affected dispensing units was immediately stopped.
* All product pipelines of MS and HSD, including the affected pipeline, were replaced by 21.12.2025. Sale of MS was resumed on 23.12.2025.
* **Further Actions:**
* Sale of MS & HSD was suspended on 21.01.2026, based on directions from Kerala State Pollution Control Board.
* Hydrotesting of all underground product storage tanks was carried out under supervision. No leakage was found in the tanks.
* IOCL was directed by the Kerala State Pollution Control Board to provide secondary containment around the underground storage tanks.
* **Long-term Measures:**
* IOCL initiated construction of a concrete wall around the storage tanks and flushing of contaminated water wells.
* IOCL provided new water storage tanks, pipeline connections, and packaged water supply to affected households.
* **Preventive Protocols:**
* Existing protocols for establishing new Retail Outlets (RO) under Petroleum Rules 2002 require a No Objection Certificate (NOC) from the District Magistrate (DM) after consultation with various departments.
* RO layout drawing is also submitted to PESO for obtaining construction approval.
* Central Pollution Control Board (CPCB) guidelines must be followed for outlets near residential water bodies.
* The reference outlet was commissioned after following all applicable protocols.
* **Accountability:**
* IOCL has sought an explanation from the Central Prison and Correctional Home Kannur for not reconciling daily stock and not reporting abnormal stock variation.
**Impact Analysis**
**Stakeholder: Affected Residents**
* **Impact:** Their drinking water wells were contaminated with mineral oil, posing health and environmental risks.
* **Action Required:** Monitor the safety of their water supply.
**Stakeholder: Indian Oil Corporation Limited (IOCL)**
* **Impact:** Reputational damage and potential financial implications due to the leakage incident.
* **Action Required:** Implement long-term measures for decontamination and prevention of future incidents; Respond to the explanation sought from the dealership.
**Stakeholder: Central Prison and Correctional Home Kannur**
* **Impact:** Potential disciplinary action for not reconciling daily stock and not reporting abnormal stock variation.
* **Action Required:** Provide an explanation to IOCL regarding the discrepancies in stock management.
**Stakeholder: Kerala State Pollution Control Board**
* **Impact:** Responsibility to ensure the safety and environmental compliance of petroleum outlets.
* **Action Required:** Monitor IOCL's implementation of secondary containment and remediation efforts; Oversee the resumption of operations at the retail outlet.
Key Entities Referenced
Indian Oil Corporation Limited (IOCL): The company whose retail outlet is suspected of leaking mineral oil into drinking water wells.
Kerala State Pollution Control Board: The state-level environmental regulator directing and supervising the response to the contamination incident.
Kannur, Kerala: The location of Pallikunnu, the site of the drinking water contamination.
Petroleum Rules 2002, Rule 144: Governs the establishment of new retail outlets and the requirement for a No Objection Certificate.
PESO: Agency responsible for construction approval and final license for retail outlets.
LOK SABHA
STARRED QUESTION NO. *85
TO BE ANSWERED ON 5TH FEBRUARY, 2026
Contamination of Drinking Water due to Petroleum Leakage
*85. Shri K Sudhakaran:
पे(cid:367)ोिलयम और (cid:255)ाकृितक गैस मं(cid:253)ी
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
पे(cid:367)ोिलयम और (cid:255)ाकृितक गैस मं(cid:253)ी
( )
(cid:174)ी हरदीप िसहं 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 05TH 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.
*****