The Kerala Government Seeks $1.1bn Compensation from MSC for Environmental Damage

The Kerala state government has filed an admiralty suit against Mediterranean Shipping Company (MSC), seeking $1.1bn in compensation for environmental and economic damages resulting from the sinking of the MSC Elsa-3 off the state’s coast on May 25.

The Liberian-flagged, 1997-built containership, en route from Vizhinjam to Kochi, capsized approximately 13 nautical miles off Alappuzha during rough monsoon conditions. The vessel was carrying 640 containers, including hazardous materials such as calcium carbide and plastic pellets, along with hundreds of tonnes of fuel The incident led to significant pollution in the Arabian Sea, adversely affecting marine ecosystems, coastal fisheries, and public health.

In response to the disaster, the Kerala High Court ordered the arrest of another MSC vessel, the MSC Akiteta II, currently docked at Vizhinjam Port, until MSC provides financial security for the claim. The court’s decision aims to ensure that MSC addresses the damages caused by the sinking of the MSC Elsa-3.

The Kerala government has also taken emergency measures, advising fishermen to avoid the sea and distributing aid to over 105,000 fishing families affected by the spill. The state has emphasized the need for MSC to take responsibility for the environmental disaster and compensate for the extensive damages incurred.