Environmental Clearance

Environmental Clearance (EC) is a mandatory approval from the government that any industrial, developmental, or infrastructure project must obtain before it can commence construction. It's a legal mechanism to assess the environmental impacts of a proposed project and to ensure that mitigation measures are in place.

The goal is to balance economic development with environmental protection, ensuring that projects do not cause irreversible damage to our ecosystems. Think of it as a green light given only after a thorough environmental check-up.

Beyond being a legal requirement, obtaining Environmental Clearance offers significant strategic advantages for your project.

1. Legal Mandate & Compliance: It is legally required under the Environment (Protection) Act, 1986, and EIA Notification, 2006. Non-compliance can lead to heavy fines, project halts, or demolitions.
2. Environmental Protection & Sustainability: It ensures your project controls pollution, manages waste, conserves resources, and protects biodiversity, aligning with global sustainability goals.
3. Risk Mitigation & Cost Avoidance: Early identification of environmental risks prevents costly damage, legal issues, and future liabilities, saving time and money in the long run.
4. Boosts Project Viability & Investor Trust: A valid EC certificate demonstrates regulatory compliance and environmental responsibility, attracting investors and enhancing project credibility.
5. Community Support & Social Approval: Public consultation fosters transparency and acceptance, reducing resistance and ensuring smoother project execution.
6. Better Planning & Eco-Friendly Design: EIA studies promote smarter design, efficient resource use, and adoption of cleaner technologies, making your project both compliant and sustainable.

The framework for Environmental Clearance in India is constantly developing, primarily governed by specific acts and notifications.

Note: These laws are enforced by various central and state authorities like the Ministry of Environment, Forest and Climate Change (MoEFCC), CPCB, and SPCBs.

The authority granting Environmental Clearance depends on the size and potential impact of your project, categorized into different levels of scrutiny.

Projects are categorized based on their potential environmental impact, which determines the level of scrutiny they will undergo for Environmental Clearance.

1. Category A Projects

These are projects with the largest potential for significant environmental impact. They require mandatory Environmental Clearance from the MoEF&CC. These projects always need a full EIA report and a public hearing, ensuring thorough review and stakeholder consultation. Examples often include large power plants, major ports, and specific mining projects.

2. Category B Projects

Projects falling under Category B have localized or less significant environmental impacts compared to Category A projects. They are appraised by the respective SEIAA Environmental Clearance authorities.

Category B is further divided into two sub-categories:

• Category B1 Projects: These projects require a full EIA report and often a public consultation as part of their environmental clearance process. Although localized, their impacts still require a detailed assessment.
• Category B2 Projects: These projects are exempt from the requirement of a full EIA report and public consultation. They are appraised by the SEAC/SEIAA based on a simpler application form and a pre-feasibility report. This streamlined process applies to projects with minimal predicted environmental impacts.

General Conditions (GC) — When Category B Becomes Category A

Some Category B projects may be automatically escalated to Category A if they fall in or near environmentally sensitive or critical areas. In such cases, central-level clearance from MoEF&CC is mandatory. This provision ensures that sensitive ecosystems receive appropriate protection.

A Category B project is automatically treated as Category A if it is located:

• Located within Protected Areas like National Parks or Wildlife Sanctuaries.
• Situated in Critically Polluted Areas, as designated by the Central Pollution Control Board (CPCB).
• Falling within Notified Eco-Sensitive Zones (ESZs).
• Positioned within 10 km of interstate or international boundaries, depending on project type.

The EIA Notification, 2006, provides a detailed list of projects requiring Environmental Clearance. Here are some broad categories:

1. Mining, Extraction, and Power Generation

This includes projects like coal washeries, mineral beneficiation, various types of mining, and thermal, nuclear, and hydroelectric power plants. Their extensive resource extraction and energy generation processes necessitate stringent environmental reviews.

2. Primary Processing and Materials Production

Projects involved in cement production, isolated storage and processing units for hazardous chemicals, petroleum refineries, and coke oven plants fall into this category. The nature of their raw materials and production processes poses significant environmental risks.

3. Manufacturing and Fabrication

This broad category encompasses industries like basic organic chemicals, synthetic organic chemicals, fertilizers, pesticides, pharmaceuticals, paint manufacturing, leather processing, and pulp & paper production. These sectors often involve complex chemical processes and waste generation.

4. Infrastructure and Service Sectors

Major ports, harbors, airports, national highways, municipal solid waste management facilities, and hazardous waste treatment, storage, and disposal facilities all require Environmental Clearance. Their large-scale operations have widespread implications.

5. Building and Construction Projects

Large townships, area development projects, and construction projects fall under the mandatory requirement for an environmental clearance certificate. These projects impact local ecosystems, water resources, and waste management.

While a list of projects requiring Environmental Clearance exists, some activities or projects may be exempted due to their limited environmental impact.

These exemptions are detailed in various amendments to the EIA Notification, 2006.

1. Highway projects of defense and strategic importance located within 100 km of the Line of Control (LoC) or international borders: These are exempted to facilitate rapid infrastructure development for national security.
2. Dredging and desilting of dams, reservoirs, rivers, and canals for maintenance, upkeep, and disaster management purposes: Exemption is to allow essential maintenance and disaster preparedness activities without undue delays.
3. Manufacturing of organic products from plants through extraction processes: This typically applies to small-scale, non-polluting operations that sustainably use natural resources.
4. Maintenance activities for airports: Routine maintenance, upkeep, and repair of existing airport infrastructure, which do not involve expansion beyond a certain threshold, might be exempted.
5. Excavation of ordinary earth from borrow areas for linear projects like roads and pipelines: Exemption applies to earth removal for specific linear infrastructure projects, streamlining their construction.
6. Research and Development (R&D) activities: Small-scale R&D units that do not involve significant environmental discharge or hazardous waste generation are often exempted from promoting innovation.
7. Standalone Solar Photovoltaic (SPV) Power Projects: Standalone Solar Photovoltaic (SPV) power projects are exempt from Environmental Clearance under the EIA Notification, 2006, due to their minimal environmental impact, no emissions, and low land disturbance.

However, clearance may still be required if the project is in an eco-sensitive zone, protected area, or involves hazardous components like battery storage.

Navigating the environmental clearance process requires a comprehensive set of documents to support your application. Here's a detailed list:

The environmental clearance process in India is a multi-stage procedure designed for thorough assessment and stakeholder engagement.

Step 1: Initial Screening and Site Identification

Identify a suitable project site and assess if it falls under Category A or B as per the EIA Notification, 2006.

• Project Categorization: The first step for any project proponent is to determine if their project falls under Category A or B, and if it's B1 or B2, as per the EIA Notification, 2006. This initial screening dictates the rest of the environmental clearance process.
• Site Suitability: Assess the proposed project site's environmental sensitivity, including its proximity to protected areas, forests, rivers, or densely populated regions. This early assessment can prevent major hurdles later.

Step 2: Define Scope and Secure Terms of Reference (ToR)

Submit Form-1 and Pre-Feasibility Report to obtain approved ToR, outlining the required studies for the EIA.

• Application Submission: For Category A projects and Category B1 projects, the proponent applies (Form 1/1A) along with a pre-feasibility report to the MoEF&CC or SEIAA, respectively.
• Scoping Meeting: The Expert Appraisal Committee (EAC) or State Expert Appraisal Committee (SEAC) then conducts a scoping meeting to determine the specific aspects and studies that need to be included in the EIA report. This results in the issuance of ToR.

Step 3: Prepare Your Environmental Impact Assessment (EIA) Report

Conduct detailed environmental studies and compile the EIA report according to the approved Terms of Reference.

• Baseline Data Collection: Based on the ToR, an accredited consultant for environmental clearance collects baseline environmental data from the project site.
• Impact Prediction and Mitigation: The EIA report predicts the potential environmental impacts of the project and outlines environmental management plans to mitigate these impacts. This is a crucial document for obtaining the environmental clearance certificate.

Step 4: Public Consultation

Organize a public hearing to gather feedback from local communities and stakeholders on the proposed project and its environmental impacts.

• Mandatory for A and B1: For Category A and most Category B1 projects, a public consultation process is mandatory. This involves a public hearing at the project site or inviting written responses from affected stakeholders.
• Transparency and Feedback: This step ensures transparency and allows local communities, NGOs, and other interested parties to voice their concerns and suggestions regarding the project's environmental impact.

Step 5: Expert Appraisal and Review

The relevant authority reviews the EIA report and public feedback to assess the project's environmental compliance and risks.

• Presentation to Committee: The project proponent, along with their consultant for environmental clearance, presents the EIA report and public consultation feedback to the EAC (for Category A) or SEAC (for Category B).
• Technical Scrutiny: The expert committee rigorously scrutinizes the report, assesses the proposed mitigation measures, and may ask for additional information or modifications. This phase can involve multiple rounds of presentations and clarifications.

Step 6: The Final Decision and Issuance of Clearance

Receive the environmental clearance approval or rejection based on the appraisal committee’s recommendations and compliance with regulations.

• Recommendation: Based on the appraisal, the EAC recommends the project for Environmental Clearance to the MoEF&CC, or the SEAC recommends to the SEIAA Environmental Clearance Authority.
• Issuance of EC: If the project meets all environmental stipulations, the MoEF&CC or SEIAA issues the Environmental Clearance certificate with specific conditions that the project proponent must adhere to during construction and operation.

The PARIVESH (Pro-Active and Responsive Facilitation by Integrative Environmental System) portal is a game-changer in the environmental clearance process in India.

Launched by the MoEF&CC, it's a single-window integrated online system designed to streamline the entire process for EC, Forest Clearance, and Wildlife Clearance.

The portal facilitates:

• Online Application Submission: Project proponents can submit all necessary documents required for environmental clearance applications digitally.
• Real-time Tracking: Applicants can track the status of their applications online, providing transparency and reducing delays.
• Faster Processing: By integrating various stages and stakeholders, PARIVESH aims to significantly reduce the time taken for granting approvals.
• Digital Communication: All communication, queries, and responses between the applicant, regulatory bodies (MoEF&CC, SEIAA Environmental Clearance authorities, EAC, SEAC), and expert committees happen online.

Obtaining an environmental clearance certificate is not the end of the journey; it's the beginning of a crucial compliance phase. Project proponents are legally bound to adhere to the conditions stipulated in the EC throughout the project lifecycle.

• Consent to Establish (CTE): After receiving EC, projects typically need to obtain a Consent to Establish from the State Pollution Control Board (SPCB) before commencing construction. This ensures the project design and initial setup align with pollution control norms.
• Consent to Operate (CTO): Once the project is constructed and ready for operation, Consent to Operate is required from the SPCB. This confirms that the operational aspects meet environmental standards and pollution control measures are in place.
• Certified Half-Yearly EC Compliance Reports: Project proponents must submit half-yearly compliance reports, certified by a third-party environmental auditor or a qualified expert. These reports demonstrate adherence to the specific conditions laid out in the environmental clearance certificate.
• Annual Environmental Audits: Regular environmental audits (often annually) are conducted to assess the effectiveness of the Environmental Management Plan (EMP) and overall environmental performance. These audits help identify areas for improvement and ensure continuous compliance.
• Real-time Monitoring Data Submission: For certain large or polluting industries, real-time monitoring of emissions and effluents might be mandated. This data is often required to be submitted directly to regulatory bodies or displayed publicly, enhancing transparency and accountability.
• Community Consultation during Operations: Some EC conditions may require ongoing community engagement or grievance redressal mechanisms during the operational phase, particularly for projects impacting local populations.

The validity period of an environmental clearance certificate varies depending on the type of project. Generally:

• Mining Projects: EC is typically valid for 30 years or the period of the mining lease, whichever is earlier.
• River Valley Projects: Validity is usually 10 years.
• Other Projects (e.g., Industrial, Infrastructure, Building & Construction): The EC is generally valid for 7 years from the date of issuance for starting construction or project activities.

Project proponents must initiate activities within this validity period. If the project doesn't start on time, an extension can be requested, but approval depends on specific conditions and updated MoEF guidelines.

Key Considerations for EC Validity and Extension

Below are the key aspects needed for a valid EC and its extension:

An Environmental Clearance is generally specific to the project and the proponent to whom it was granted. However, the EIA Notification, 2006, does provide for the transferability of EC under certain conditions.

• If a project is transferred through sale, lease, or other means, the new management or entity must apply for Environmental Clearance transfer. The application must be submitted to the concerned regulatory authority, either the MoEF&CC or the respective SEIAA.
• The transfer application must typically be made within a specified period. The authority will review the application and ensure that all existing EC conditions will continue to be complied with by the new proponent.

When is a Transfer Necessary?

A transfer of Environmental Clearance (EC) becomes necessary in situations where there's a change in the project proponent or the entity responsible for the project. This includes scenarios such as:

• Change in Ownership: When a project is sold, acquired, or transferred from one company or individual to another.
• Mergers and Acquisitions: In cases where companies merge or one company acquires another, the environmental liabilities and clearances of the acquired entity need to be transferred to the new management.
• Restructuring of Companies: If a company undergoes significant restructuring, like demergers or internal transfers of assets, the EC may need to be reassigned to the newly formed or responsible entity.
• Change in Project Implementing Agency: For government projects, if the implementing agency changes, the EC's responsibilities need to be formally transferred.

Process of EC Transfer

The process for transferring an Environmental Clearance involves several formal steps to ensure regulatory compliance and accountability:

• Application Submission: The new project proponent must submit a formal application to the relevant regulatory authority. This application typically includes details of the original EC, the reason for transfer, and information about the new proponent.
• Required Documentation: Comprehensive documentation is crucial. This usually includes the original EC letter, legal documents proving the change in ownership/management, a NOC from the previous proponent (if applicable), and updated project details under the new management.
• Review by Regulatory Authority: The regulatory authority will review the application and submitted documents to verify and ensure that the new proponent is capable of complying with the EC conditions. They may also assess if the transfer impacts the project's environmental aspects.
• Public Consultation (if required): In some cases, especially for large projects or if there are significant changes beyond ownership, the authority might require a fresh public hearing or consultation process.
• Issuance of Transfer Order: Upon satisfaction with the application and verification, the regulatory authority will issue an order approving the transfer of the EC to the new project proponent. This order may reiterate existing conditions or introduce new ones if deemed necessary.

Important Considerations for EC Transfer

Several critical factors must be carefully considered during the EC transfer process to avoid delays and ensure continued compliance:

• Due Diligence: The new project proponent must conduct thorough environmental due diligence before acquiring the project. This involves understanding all existing EC conditions, environmental liabilities, and any past non-compliance issues.
• Continuity of Compliance: The new proponent inherits all existing conditions and obligations of the original EC. It is crucial to ensure uninterrupted compliance with all environmental norms, monitoring requirements, and reporting schedules from the effective date of transfer.
• Legal and Regulatory Updates: Environmental regulations can change over time. The new proponent should be aware of any updated laws or specific conditions that may apply to their project, even if the original EC was issued under older norms.
• Timeframe for Application: It is essential to apply for the transfer within the timeframe following the change in ownership or control, as per environmental regulations. Delays can lead to penalties or even suspension of operations.

Navigating the environmental clearance process can sometimes lead to challenges or rejection. Understanding the recourse options is vital:

Note: Expert support and accurate documentation are important to address EC challenges or rejections successfully.

An Environmental Clearance Certificate is an official approval granted by the Ministry of Environment, Forest and Climate Change (MoEF) or the State Environmental Impact Assessment Authority (SEIAA).

It confirms that your proposed project complies with all environmental laws and can proceed without harming the environment. This certificate is mandatory for activities like construction, mining, industrial expansion, and infrastructure development that may impact the environment.

How to Download the Environmental Clearance Certificate?

Follow these simple steps to download your certificate online:

1. Visit the Parivesh Portal: Go to parivesh.nic.in – the official portal of MoEFCC.
2. Log in to your Dashboard: Use your registered email ID and password linked to your project.
3. Go to ‘My Proposals’: Navigate to your project under the proposals section.
4. Click on ‘Issued EC’: Once the clearance is granted, the certificate will be available here.
5. Download the PDF: Click on the download button to save your official Environmental Clearance Certificate.

How to Check Environmental Clearance Status Online?

To check the current status of your environmental clearance application:

1. Go to the official website.
2. Click on ‘Search Proposal’: Available on the home page or under project services.
3. Enter Your Proposal Details: Input the proposal number, applicant name, or project location.
4. View Real-Time Status: Track the exact stage of your application — whether it is under screening, appraisal, approved, or rejected.
5. Download Relevant Documents: If available, you can also download meeting minutes, queries, and final certificates.