India Streamlines Environmental Clearances to Boost Ease of Doing Business

The Indian government has implemented significant reforms to streamline environmental clearance processes, aiming to reduce compliance burdens on industries while maintaining robust environmental safeguards. These changes, primarily focused on integrating environmental clearance and consent mechanisms, are expected to promote ease of doing business and accelerate project implementation.

Under the existing framework, projects listed in the schedule of the EIA Notification, 2006, require prior environmental clearance. This process ensures environmental impact assessments and mitigation measures are in place before project commencement. Additionally, industries are required to obtain Consent to Establish (CTE) and Consent to Operate (CTO) from State Pollution Control Boards (SPCBs) under the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981.

To reduce redundancy and streamline approvals, the Central Government has amended Section 21 of the Air Act, 1981, and Section 25 of the Water Act, 1974. Notifications dated November 12, 2024 have been issued to exempt certain categories of industries from obtaining consents. Specifically, “white” category industries are completely exempted from the consent mechanism, while other categories are exempted from CTE if the project has already received environmental clearance under the Environmental (Protection) Act, 1986.

Key Benefits and Safeguards:

  • Reduced Compliance Burden: The exemptions significantly reduce the administrative burden on industries by eliminating duplicate approvals.
  • Improved Ease of Doing Business: Streamlining the clearance process will facilitate faster project implementation and attract investment.
  • Integrated Approach: The changes do not eliminate environmental oversight. Instead, they integrate the environmental clearance and consent processes, ensuring that environmental considerations are addressed comprehensively during the environmental appraisal stage. SPCBs will have the opportunity to provide input during this process, with relevant conditions included in the environmental clearance.
  • Standard Operating Procedure: A Standard Operating Procedure (SOP) has been issued via Office Memorandum dated November 14, 2024, to guide the implementation of these changes.

PARIVESH 2.0 and Other Initiatives

The Ministry has also implemented broader systemic and policy reforms through the PARIVESH portal. PARIVESH 2.0 leverages technology to streamline and expedite the entire environmental clearance process, enhancing transparency and accountability.

Other key initiatives include:

Authority for clearing certain Mining, Irrigation, Power, and Transportation & Connectivity projects under EIA, 2006, has been delegated to State Level Environment Impact Assessment Authorities.

Industries can now expand production capacity in a phased manner (up to 50%) without requiring a public hearing, subject to adherence to environmental safeguards.

The issuance of standard Terms of Reference (ToR) further streamlines the environmental assessment process.

RECENT UPDATES