Chennai: Tamil Nadu Pollution Control Board (TNPCB) granted consent to operate (CTO) for a key expansion by Aavin’s Ambattur product dairy, permitting it to process up to 5 lakh litres of milk a day, a move that will help meet Chennai’s growing milk demand. However, the approval comes with a condition: Aavin must pay an environmental compensation of 5.1crore for proceeding with the expansion earlier without formal consent.This penalty, while minor in the larger scheme of Aavin’s operations, offers crucial regulatory closure for the Tamil Nadu Cooperative Milk Producers Federation (TNCMPF), which is eyeing a scale-up of city-wide supply to 22 lakh litres daily in the coming months. Officials said the expansion is now legally approved, and milk production is stabilizing after months of regulatory delays.The latest TNPCB inspection confirmed that Aavin completed its ETP upgrades and is meeting pollution norms. IIT Madras certified the plant can handle 700 kilolitres of effluent daily. Effluent samples from March and April were within prescribed limits. In its report filed before the National Green Tribunal (NGT) this week, TNPCB acknowledged previous violations by Aavin, including operating at a capacity far exceeding its earlier sanctioned limit of 3 lakh litres a day. The dairy was also criticized for allowing plastic waste accumulation, keeping waste in open areas, and illegal effluent discharge into a nearby surplus canal, carrying water to Korattur Lake.After multiple inspections between Dec 2024 and May 2025, TNPCB found that the plant was now functioning with upgraded waste handling systems, plastic waste compacting machines, closed sheds for storage, and segregation protocols in place.