Union Government Eases Environmental Approval Process for Industries

On January 16, 2023, the Union Government of India announced a significant step towards streamlining the environmental approval process for industries. The Ministry of Environment, Forests and Climate Change (MoEFCC) has revised the Environment Impact Assessment (EIA) Notification, 2006, to ease the process for certain categories of projects.

The revised notification categorizes projects into four levels based on their potential environmental impact. Projects falling under Category A require prior environmental clearance from the MoEFCC, while those in Category B1 and B2 need clearance from the State Environment Impact Assessment Authority (SEIAA). Category C projects, considered to have minimal environmental impact, are exempted from the EIA process.

The key changes introduced in the revised EIA Notification include:

• Expansion of the list of projects exempted from the EIA process under Category C.
• Introduction of a new Category B2 for projects with moderate environmental impact, requiring clearance from the SEIAA.
• Streamlining the approval process for Category A projects by introducing a single-window clearance system.
• Delegation of powers to the SEIAAs to grant environmental clearances for Category B1 projects.

These changes are expected to reduce the time and effort required for industries to obtain environmental clearances, while ensuring that projects with significant environmental impacts continue to undergo a rigorous assessment process.

The revised EIA Notification has been welcomed by industry associations, who have long advocated for a more streamlined environmental approval process. The Confederation of Indian Industry (CII) has stated that the changes will "facilitate faster and more efficient decision-making, while ensuring environmental protection."

However, some environmental groups have expressed concerns that the revisions may weaken environmental safeguards. The Centre for Science and Environment (CSE) has cautioned that "the exemption of many projects from the EIA process could lead to increased environmental degradation."

The MoEFCC has defended the revised notification, stating that it strikes a balance between promoting economic development and protecting the environment. The ministry has also emphasized that the changes will not compromise environmental standards and that projects with significant environmental impacts will continue to be subject to a rigorous assessment process.

The revised EIA Notification is expected to have a significant impact on the development of industries in India. It is anticipated that the streamlined approval process will reduce project delays and costs, making it more attractive for businesses to invest in India.