INTRODUCTION TO ENVIRONMENT CLEARANCE
Environmental Clearance (EC) is a crucial regulatory process mandated by the government to ensure that projects with potentially significant environmental impacts undergo proper scrutiny before being established or modified. This clearance is essential for projects that could lead to considerable environmental pollution, helping to safeguard ecological balance. Under the Indian Constitution, the Environmental Impact Assessment (EIA) Notification of 2006 provides a detailed list of such projects, including activities like mining, thermal power generation, and large-scale infrastructure development. These regulations ensure that necessary environmental safeguards are in place before these projects can proceed, protecting both natural resources and public health.
The primary aim of Environmental Clearance is to evaluate the potential effects of a proposed project on both the environment and surrounding communities. This process helps identify and assess any risks or negative impacts the project may pose. By doing so, it seeks to implement measures that can reduce or mitigate these effects, ensuring that development proceeds in a way that minimizes harm to the environment and promotes the well-being of people in the affected areas.
Factors considered during Environment Clearance are Air and Water Quality (How the industrial setup will affect local air and water conditions), Biodiversity (Potential impacts on local flora and fauna), Waste Management (Disposal of solid, liquid, and hazardous waste), Resource Usage (Consumption of water, energy, and other natural resources), Noise Pollution (Impact of noise generated by the industry) and Social Impact (Effects on local communities, including health, displacement, and livelihood concerns)
The EIA Notification classifies projects into two categories:
The EIA classifies projects into two categories – Category A and Category B—Projects are classified based on their size and scale, the nature of the project (industrial, mining, infrastructure), and the location (especially in sensitive ecological zones like coastal areas or national parks, which require stricter regulation).
Category A, The project which have high-impact with significant environmental effects at regional or national levels fall in this category. They require clearance from the Ministry of Environment, Forest, and Climate Change (MoEFCC) at the level of Central Government, and must undergo a comprehensive Environmental Impact Assessment (EIA), including mandatory public hearings. Examples: Large-scale mining, major infrastructure (highways, airports, ports), thermal power plants (>500 MW), large chemical industries, and cement plants (capacity >1 million tons/year).
Category B, The projects which have localized environmental impacts fall in this category and require clearance from the State Environmental Impact Assessment Authority (SEIAA). They are further divided into B1, which requires a full EIA and public consultation, and B2, which does not need a full EIA or public consultation but must implement environmental management measures. Examples of Category B projects include small-scale industries, smaller construction projects, thermal power plants under 500 MW, and small mining projects.
REQUIREMENTS OF PRIOR ENVIRONMENT CLEARANCE
Prior Environmental Clearance (EC) is required for specific projects or activities before any construction or development activities are carried out on the land.
STAGES IN ENVIRONMENT CLEARANCE
The environmental clearance process for new projects may involve up to four stages, though not all stages will apply in every case as outlined in the notification. These stages, followed in sequential order, are:
Screening
Scoping
Public Consultation
Appraisal
PROCEDURE OF ENVIRONMENT CLEARANCE

WHICH PROJECT REQUIRE ENVIRONMENT CLEARANCE?
Projects with the potential to cause significant environmental impacts typically require Environmental Clearance (EC). Such projects include large industrial operations, infrastructure developments, mining activities, and other initiatives that could substantially affect the environment.
LIST OF PROJECTS OR ACTIVITIES REQUIRING PRIOR ENVIRONMENTAL CLEARANCE
MINING, EXTRACTION OF NATURAL RESOURCES AND POWER GENERATION | |
(a) | (i) Mining of minerals. (ii) Slurry pipelines (coal lignite and other ores) passing through national parks / sanctuaries / coral reefs, ecologically sensitive areas. |
(b) | Offshore and onshore oil and gas exploration, development & production. |
(c) | River Valley projects. |
(d) | Thermal Power Plants. |
(e) | Nuclear power projects and processing of nuclear fuel. |
PRIMARY PROCESSING | |
(a) | Coal washeries. |
(b) | Mineral beneficiation. |
MATERIAL PRODUCTION | |
(a) | Metallurgical industries (ferrous & non-ferrous) |
(b) | Cement plants. |
MATERIAL PROCESSING | |
(a) | Petroleum refining industry. |
(b) | Coke oven plants. |
(c) | Asbestos milling and asbestos based products. |
(d) | Chlor-alkali industry. |
(e) | Soda ash Industry. |
(f) | Leather/skin/hide processing industry. |
MANUFACTURING / FABRICATION | |
(a) | Chemical fertilizers. |
(b) | Pesticides industry and pesticide specific intermediates (excluding formulations) |
(c) | Petro-chemical complexes (industries based on processing of petroleum fractions & natural gas and/or reforming to aromatics) |
(d) | Manmade fibers manufacturing. |
(e) | Petrochemical based processing (processes other than cracking & reformation and not covered under the complexes) |
(f) | Synthetic organic chemicals industry (dyes & dye intermediates; bulk drugs and intermediates excluding drug formulations; synthetic rubbers; basic organic chemicals, other synthetic organic chemicals and chemical intermediates) |
(g) | Distilleries. |
(h) | Integrated paint industry. |
(i) | Pulp & paper industry excluding manufacturing of paper from waste paper and manufacture of paper from ready pulp without bleaching. |
(j) | Sugar Industry. |
SERVICE SECTORS | |
(a) | Oil & gas transportation pipeline (crude and refinery/petrochemical products), passing through national parks / sanctuaries / coral reefs / ecologically sensitive areas including LNG Terminal. |
PHYSICAL INFRASTRUCTURE INCLUDING ENVIRONMENTAL SERVICES | |
(a) | Air ports. |
(b) | All ship breaking yards including ship breaking units. |
(c) | Industrial estates/ parks/ complexes/ areas, export processing Zones (EPZs), Special Economic Zones (SEZs), Biotech Parks, Leather Complexes. |
(d) | Common hazardous waste treatment, storage and disposal facilities (TSDFs) |
(e) | Ports, harbours, break waters, dredging. |
(f) | Highways. |
(g) | Aerial ropeways. |
(h) | Common Effluent Treatment Plants (CETPs) |
(i) | Common Municipal Solid Waste Management Facility (CMSWMF) |
BUILDING / CONSTRUCTION PROJECTS / AREA DEVELOPMENT PROJECTS AND TOWNSHIPS | |
(a) | Building and Construction projects. |
(b) | Townships and Area Development Projects. |
VALIDITY OF ENVIRONMENT CLEARANCE
The environmental clearance previously issued for a project or activity remains valid for different durations depending on the type of project.
For River Valley projects, the clearance is valid for up to ten years, while for mining projects, it lasts for the project’s estimated lifespan, subject to a maximum of thirty years. For all other types of projects, the validity is limited to five years.
In the case of Area Development projects and Townships, the clearance covers only the responsibilities of the applicant as a developer. The regulatory authority may extend this validity by up to five additional years if the applicant submits a request, including an updated Form 1 ( Covers key details about a project, including its location, size, pollution potential, resource requirements, and environmental impact) and, for construction-related activities, Supplementary Form 1A (provides environmental and sustainability details specifically for building and construction projects seeking Environmental Clearance) within the original validity period.
TRANSFERABILITY OF ENVIRONMENT CLEARANCE
An existing environmental clearance issued for a particular project or activity can be transferred to another legally authorized entity during its validity period. This transfer can occur upon the request of the original holder or the new applicant, provided there is written consent (“no objection”) from the transferor. The relevant regulatory authority will process the transfer under the same terms and conditions as the original clearance, and it will remain valid for the same duration. No consultation with the Expert Appraisal Committee or the State-Level Expert Appraisal Committee is required for such transfers.
WHAT ASCC CAN DO FOR YOU
People in ASCC have thorough knowledge of obtaining Environmental Clearacne. But our company is not the approved agency from the Ministry of Environment. We are connected to the agencies which are in this field and approved by the the MoEF. The work can be assigned to any of these agencies and our company can monitor the work till grant of EC.
ASCC Pvt. Ltd. is an ISO and SSI certified industrial real estate consultancy based in Navi Mumbai, specializing in supporting the industrial sector in India, especially Maharashtra. The company provides a comprehensive one-stop solution in three key areas: Land Acquisition and Sale, Deeds and Documentation, and industrial Permits and Licenses.
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Reach Us at
Ascent Supply Chain Consultants Private Limited (ASCC),
406 Raheja Arcade, Sector-11, CBD Belapur,
Navi Mumbai – 400614, MH – India.
Tel: 022-4897-4888
Email: info@ascc.in
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