The Union Ministry of Environment, Forest and Climate Change announced the discontinuation of the star-rating system for evaluating state environmental bodies. This decision followed a ruling by the National Green Tribunal (NGT) in Chennai, which deemed the January 2022 office memorandum (OM) inoperative. The star-rating system aimed to incentivise efficiency in granting environmental clearances for industrial and infrastructure projects. However, it faced criticism for potentially diluting scrutiny under the Environment Impact Assessment (EIA) notification of 2006.
Background of the Star-Rating System
The star-rating system was introduced on January 17, 2022. Its purpose was to evaluate State Environment Impact Assessment Authorities (SEIAAs) based on their efficiency and timelines for granting clearances. The system rated SEIAAs on a scale of 0 to 7, focusing on the number of days taken for approvals and adherence to established timelines. This initiative was part of a broader effort to enhance the ‘ease of doing business’ in India.
Criticism and Legal Challenge
The system faced legal challenges from environmental groups, notably a fishermen’s association in Tamil Nadu. They argued that the star-rating system was arbitrary and could undermine the rigorous scrutiny required for environmental assessments. Their concerns were rooted in the potential for reduced oversight under the EIA framework, which categorises projects based on their environmental impact.
NGT Ruling
On March 27, 2025, the NGT ruled that the OM from January 2022 was now inoperative. The Ministry of Environment confirmed its decision to abandon the star-rating initiative and indicated plans to develop new criteria for evaluating SEIAAs in the future. The NGT’s ruling brought into light the importance of maintaining stringent environmental assessments.
Future Directions
Following the NGT’s order, the Ministry of Environment stated that a revised office memorandum would be introduced. This new framework is expected to align with the PARIVESH 1.0 portal, a single-window system designed to streamline the clearance processes. The ministry aims to revisit the criteria for evaluating SEIAAs to ensure that environmental protections remain robust.
Implications for Environmental Governance
The abandonment of the star-rating system raises questions about the future of environmental governance in India. It puts stress on the need for a balance between facilitating business operations and ensuring environmental sustainability. The ministry’s commitment to revising its approach suggests a recognition of the importance of thorough environmental assessments in project approvals.
Questions for UPSC:
- Critically analyse the role of the Environment Impact Assessment in sustainable development in India.
- What are the implications of the National Green Tribunal’s ruling on environmental governance? Discuss.
- Estimate the impact of the star-rating system on the efficiency of environmental clearances in India.
- With suitable examples, explain the relationship between industrial development and environmental protection in the context of India.
Answer Hints:
1. Critically analyse the role of the Environment Impact Assessment in sustainable development in India.
- The EIA process evaluates potential environmental impacts of projects before approval.
- It ensures public participation and transparency, encouraging community engagement.
- EIAs help in identifying mitigation measures to minimize negative environmental effects.
- They are essential for balancing economic growth with ecological sustainability.
- Strengthening EIAs can enhance compliance with environmental regulations and standards.
2. What are the implications of the National Green Tribunal’s ruling on environmental governance? Discuss.
- The ruling puts stress on the need for rigorous environmental assessments in project approvals.
- It may lead to a reassessment of existing mechanisms for environmental clearances.
- The decision reflects judicial oversight on governmental policies impacting the environment.
- It could prompt the development of more robust criteria for evaluating state environmental bodies.
- The ruling emphasizes the importance of stakeholder engagement in environmental governance.
3. Estimate the impact of the star-rating system on the efficiency of environmental clearances in India.
- The star-rating aimed to incentivize timely processing of environmental clearances.
- It could have improved accountability among State Environment Impact Assessment Authorities (SEIAAs).
- However, criticism indicated it might dilute scrutiny under the EIA framework.
- Its discontinuation raises concerns about maintaining efficiency without compromising environmental standards.
- Future frameworks need to balance efficiency with rigorous environmental oversight.
4. With suitable examples, explain the relationship between industrial development and environmental protection in the context of India.
- Industrial development can lead to economic growth but often at the cost of environmental degradation.
- For example, the expansion of manufacturing in regions like Gujarat has raised pollution levels.
- Conversely, initiatives like the ‘Swachh Bharat Mission’ show efforts to integrate industrial growth with environmental cleanliness.
- Renewable energy projects, like solar parks, exemplify sustainable industrial development practices.
- Effective regulations can promote green technologies, harmonizing industrial growth with environmental protection.
