On May 7, 2019, the ministry of environment and forest [MoEF] released a compilation of official documents on environment impact assessment [EIA] related issues. It encapsulates crucial notifications or office memoranda on the guidelines/procedures for environmental clearance for projects across industrial sectors. The compilation covers the period between December 2014 and January 2019 under the present dispensation led by prime minister, N Modi.
The document looks mundane but is a window to see through momentous changes which have helped transform the economic landscape of India and have been greatly instrumental in putting the economy on to a high growth trajectory. To get an idea as to how, let us take a look at some of the key changes.
On March 15, 2016, for the first time ever, the ministry delegated the authority to grant environmental clearances for up to 5 hectares of individual mining lease of minor minerals and 25 hectares in clusters to the district EIA authority headed by the local district magistrate or district collector.
Vide an office memorandum issued on March 20, 2015, the ministry dispensed with the requirement of a project proponent having to seek fresh environmental clearance at the time of renewal of its mining lease if it already has a clearance. Further, in April 2016, it extended the validity of environmental clearances granted to projects depending on when they were granted the approvals.
In March 2017, in a major relaxation of the norms for thermal power plants including ultra mega power plants [UMPP] capable of generating 4,000 megawatts or more of electricity, the ministry allowed consideration of and grant of environmental clearances without linking it to prior environmental clearance and Stage 1 forest clearance for the linked coal blocks.
In the same year, this was followed by a notification under the Environment Protection Act [EPA], allowing the appraisal of projects “ex-post facto” — projects on which construction had begun without necessary environmental clearances.
In yet another intervention, the ministry issued an amendment to the EIA notification [2006] to integrate environmental clearances in the building by-laws for real estate projects thereby obviating the need for the proponents having to go for independent environmental appraisal process.
Furthermore, on August 10, 2018, the ministry stipulated standard environmental clearance conditions for 25 industrial sectors such as coal mining, iron and steel plants, industrial estates, river valley and hydroelectric projects.
Prior to Modi taking charge [2014], delay in getting environmental approval – besides delay in acquisition of land – was a major factor contributing to delay in implementation of projects. This meant huge escalation in investment cost in turn, leading to higher price/tariff for goods/services/utilities [due to increase in capital related charges viz. interest and depreciation] putting an unusually high burden on the users/consumers/industries.
For long, the industries had suffered due to high tariff on electricity supply – a major reason being the high capital cost of commissioning power projects caused by delay in getting environment-related clearances among others. This had made our products un-competitive in both domestic and international markets. For the states, it meant higher subsidy/fiscal deficit even as they were unable to charge more from farmers and poor households.
The delay in granting approvals can be sourced to bureaucratic red tape, corruption and nepotism which was a hallmark of the erstwhile UPA – dispensation [recall the ‘Jayanthi tax’ a euphemism used by Modi to describe the bribe money the then, environment minister, Jayanthi Natarajan used to take for granting such approval].
A mindset to make money in lieu of approvals – under quid pro quo arrangement – centralization of authority and cumbersome procedures provided a deadly cocktail which while adding to the personal riches of a select few [read: corrupt politicians and bureaucrats] used to cause project delays. Thus, there were project specific clearances, proponents were required to take fresh approval at the time of renewals or carrying out expansion/modifications, conducting public hearings and files having to travel through multiple layers right up to the level of the minister for grant of final sanction.
Modi – government has brought about a metaphorical change in the way environmental clearances are granted. There is a discernible move towards ‘standardization’, ‘simplification’ and above all, ‘decentralization’ in the process.
Further, it has dispensed with approval wherever it is redundant; for instance, at the time of renewing an existing mining lease or undertaking expansion/modification at an existing site. All of this has helped in substantially cutting on bureaucratic red tape and speed up the process of granting approvals. The results are stupendous as reflected in unclogging of projects worth Rs 1200,000 crore.
Unfortunately, the changes have been opposed by environmental experts/NGOs who feel these have compromised ecological concerns and even gone to the court. For instance, the March 15, 2016 notification was challenged in the National Green Tribunal [NGT] on the ground that district authorities lacked expertise in assessing the impact on environment. Likewise, amendment to the EIA notification [2006] was also challenged before the NGT who stayed it. The matter is now pending in the Supreme Court [SC].
Their main objection is to the process of standardization/uniform format and lack of focus on project specific ecological concerns. This way of looking at things is myopic. So, long as broad environmental implications are taken care, this should suffice. In any case, the projects can’t be held hostage to delays in approval merely on the pretext of not giving sufficient attention to some specifics.
The critics also object to giving exemptions to certain projects from environment clearance. This thinking is flawed. If, prima facie it is seen that a project has no impact on ecology [e.g. rail line or expressway], it makes no sense to go for such approval which will only lead to avoidable delay.
To sum up, while environmental concerns need to be addressed, these must not be allowed to come in the way of timely project approvals – a prerequisite for boosting growth, enhancing people welfare and combating poverty. Modi – government is endeavoring to strike a judicious balance between the two.