The Environment Protection Act of 1986 and the associated Environment Impact Assessment are two key instruments used by the Indian government to safeguard and regulate the relationship between development projects and the environment. Recently, however, a controversy has arisen over changes to these processes. The driving force behind these changes is the Union Ministry of Environment, Forests, and Climate Change’s decision to rank states on the speed of their Environmental Clearance (EC) procedure.
Ranking States and the Role of SEIAAs
The Union Ministry has decided to use State Environment Impact Assessment Authorities (SEIAAs) as the primary metric for this ranking system. SEIAAs are responsible for providing ECs for a majority of infrastructure, development, and industrial projects in India. Their function is to evaluate the impact of proposed projects on the environment and local communities, with an aim to minimize potential negatives.
The new ranking system is intended as a means of incentivizing state bodies through a star-rating system. This system would reward efficiency and timeliness in the granting of ECs. However, questions have been raised about the potential negative impacts of such a rankings system.
The Parameters of the Ranking System
The ranking system will be based on a set of specific parameters relating to how each SEIAA functions. These include:
– The average number of days taken by an SEIAA to accept project proposals
– The amount of complaints addressed by the SEIAA
– The percentage of cases that underwent site visits
– The frequency of requests for additional information from project proponents
– The disposal rates of proposals seeking fresh or amended Terms of Reference (ToR)
– The disposal rates of proposals seeking fresh or amended ECs.
The highest ranked SEIAA under this system would be the one that clears projects in the shortest amount of time, has the highest number of clearances, and seeks fewer “essential details”.
Criticism of the New Ranking System
Despite the apparent benefits of incentivizing swift and efficient operations, the proposed ranking system has drawn significant criticism. It’s argued that such a system could diminish SEIAAs to merely ‘rubber stamp’ entities, where speed is prized over thorough and conscientious vetting of projects. Critics contend that the system is in violation of Article 21 of the Indian Constitution, which guarantees the protection of life and personal liberty, alleging that it promotes business interests at the cost of people and the environment.
A Challenged Mandate
Critics further argue that the new rating system could severely constrain the mandate of the SEIAAs as defined under the Environment Protection Act, 1986 and the Environment Impact Assessment notification. They fear the quality of environmental impact assessments could be diluted under this new system. They believe the focus should remain on environmental protection, as outlined in Section 3(3) of the Environment Protection Act.
Environmental Clearance in India: An Overview
In India, environmental clearance is mandatory for projects and must be obtained either from the State or Central Government. The primary objective of this clearance is to minimize damage to natural resources and incorporate appropriate remedial measures at the project formulation stage. The Environmental Impact Assessment (EIA) notification outlines the procedure for obtaining an EC and includes provisions for public hearings for decision-making. This notification applies to both government and private sector projects.
The Way Forward
While the underlying philosophy of the EIA is integral to protecting the environment and maintaining a balance between ecology and economy, some critics argue the time-consuming stages of the process pose a significant obstacle to starting a business in India. Over the past few years, administrative and bureaucratic issues have made investment more difficult for local investors. As such, there is a growing call for the reassessment and potential revamping of environmental clearance procedures.
