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India's Kerala state seeks $1.1 billion in compensation from MSC over oil spill

Published by Global Banking & Finance Review

Posted on July 8, 2025

2 min read

· Last updated: January 23, 2026

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India's Kerala state seeks $1.1 billion in compensation from MSC over oil spill
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By Arpan Chaturvedi NEW DELHI (Reuters) -India's southern state of Kerala has sued Swiss-based Mediterranean Shipping Company and sought $1.1 billion in compensation after one of its container vessels

India's Kerala state seeks $1.1 billion in compensation from MSC over oil spill

By Arpan Chaturvedi

NEW DELHI (Reuters) -India's southern state of Kerala has sued Swiss-based Mediterranean Shipping Company and sought $1.1 billion in compensation after one of its container vessels sank and leaked fuel into the Arabian Sea in May.

The high court in Kerala issued an order late on Monday asking port authorities to effect "the arrest, seizure and detention" of another MSC ship anchored in the Vizhinjam Port in the state until it deposits securities for the claim amount.

MSC did not immediately respond to a Reuters request for comment. An Indian government statement in May said the company had appointed a marine services company for oil removal and environmental clean up.

On May 25, Liberia-flagged MSC ELSA3 ship travelling from Vizhinjam on India's southern tip to Kochi had capsized. The incident had resulted in leaking fuel and releasing cargo, some of which contained hazardous material.

The incident "has resulted in massive pollution of Kerala's marine ecosystem, with oil slicks and floating cargo causing serious detriment to the environment, coastal fisheries and public health," the state government said in its court filing, which is not public but was reviewed by Reuters.

After the May incident, the state government asked local fishermen to avoid going into the sea and distributed cash and food relief to around 105,518 families involved with fishing industry.

(Reporting by Arpan Chaturvedi; Editing by Aditya Kalra and Raju Gopalakrishnan)

Key Takeaways

  • Kerala sues MSC for $1.1 billion over oil spill.
  • High court orders detention of another MSC ship.
  • Oil spill caused significant marine pollution.
  • Fishermen advised to avoid the sea post-incident.
  • Relief distributed to affected fishing families.

Frequently Asked Questions

What is the compensation amount Kerala is seeking from MSC?
Kerala is seeking $1.1 billion in compensation from the Mediterranean Shipping Company (MSC).
What caused the oil spill in Kerala?
The oil spill was caused by the capsizing of the Liberia-flagged MSC ELSA3 ship, which leaked fuel and released cargo.
What has been the environmental impact of the oil spill?
The incident has resulted in massive pollution of Kerala's marine ecosystem, with oil slicks and floating cargo causing serious detriment to the environment, coastal fisheries, and public health.
How did the Kerala government respond to the incident?
The Kerala government advised local fishermen to avoid going into the sea and distributed cash and food relief to around 105,518 families involved in the fishing industry.
What legal action has been taken against MSC?
The high court in Kerala ordered the arrest, seizure, and detention of another MSC ship anchored in Vizhinjam Port until further notice.

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