PROJECT FORMULATION

AND APPRAISAL
 ENVIRONMENTAL/POLLUTION
CONTROL CLEARANCES
• Its one of the very important and controversial areas of project
clearances involving Central and State government ministries of
environment and forest
• Funding proposals from World bank group and other financial
institutions will clear their funding proposals only after checking if
the management has organised for environment care, forest and
natural resources and human and animal lives etc.
• If any work is done without considering environment then it will
destroy mankind
• Controversy between the environmentalists and government took
place while going for mega projects and long delay occurred in taking
final decision for projects like nuclear power plants, mega sardar
sarovar project, Bombay power plant and hydroelectric power plant
etc.
• World banks detailed sector wise guidelines for projects regarding the
environmental protection
• Central government policy in respect of environmental care is
contained in Industry ministry's press notes No.9, No.17 (1984
series) and No.35 (1988 series)
• In order to prevent pollution, government has insisted on certain conditions
to be fulfilled by all project enterprises
• Pollution control equipment is installed in all the industries and also the
location of the industry is known so that pollution is checked periodically
Conditions to be fulfilled include
• The state director of industries confirmation that the site of the project has
been approved from environmental angels by the competent state authority
• The entrepreneurs commitment both to the state and central government that
he will install the appropriate equipment and implement measures for
controlling pollution
• The state pollution control boards certification that the proposal meets
with the environmental requirements and the equipment installed or
proposed is adequate and appropriate to requirement
• Government has mentioned 20 major polluting industries. They
include
1 Metallurgical industries like lead, zinc, copper etc
2 Paper, pulp and newsprint
3 Pesticides/insecticides
4 refineries
5 fertilizers
6 Paints
7 Dyes
8 Leather tanning
9 Rayon
10 Sodium/potassium cyanide
11 Basic drugs
12 Foundry
13 Storage acid batteries (Lead acid type)
14 Acids/alkalies
15 Plastics
16 Rubber (synthetic)
17 Cement
18 Asbestos
19 Fermentation industry
20 Electro plating industry
• The Central Ministry of Environment and Forest has prepared
guidelines for projects in 1980 for following sectors

1 Shipping and Harbour projects

2 Development of Beaches
3 Mining operations
4 River Valley projects
5 Siting of Industrial Projects
6 Thermal power plants
• There are Hazardous waste (management and handling) rules
1989, framed under Environment (protection) act 1986, published
by PIB in its press release on August 11, 1989
• Water (prevention and control of pollution) act 1974
• Water (prevention and control of pollution) cess act 1977
• Central pollution control board and Bureau of Indian standards have
prepared non statutory effluent standards known as minimum national
standards (MINAS) for 11 water polluting industries. This includes
Caustic soda, man made fibre, oil refinery, super thermal power plants,
cotton textiles, composite woollen mills, cement, electro plating, dyes
and stone crushing
• The ministry has classified industries into three categories, Red,
Orange and Green for the inspection of pollution

RED High Degree

ORANGE Medium
GREEN Normal

• The frequency of inspection is high for Red, medium for Orange and
Low for Green
• Since there is delay in implementation of the large development projects,
the central government has set up a Standing Committee on
Environmental Clearance for Development Projects in the year 1991
headed by Deputy Chairman of Planning Commission
• It aims clearing the project within three months
• This initiative is taken by country's Prime Minister will reduce project
overruns (continue beyond extended time and cost)
• All projects is finally cleared and financial sanctions are given after
evaluation of Environmental impact thoroughly
• Its made sure that the Environmental protection aspects are incorporated in
construction methods and maintenance
 Requirements of prior Environmental
Clearance (EC)
• EC by whom?
– Category A projects: Central Government in the Ministry of Environment and
Forests
• Base decisions on the recommendation by Expert Appraisal Committee (EAC)

– Category B projects: At state level the State Environment

Impact Assessment Authority (SEIAA)

• The SEIAA shall base its decision on the recommendations of a State or Union territory
level Expert Appraisal Committee (SEAC) as to be constituted for in this notification

• In the absence of a duly constituted SEIAA or SEAC, a Category ‘B’ project shall be treated
as a Category ‘A’ project
 Stages in Prior Env. Clearance
Process

• Stage 1: Screening
• Stage 2: Scoping
• Stage 3: Public Consultation
• Stage 4: Appraisal
 Stage 1: Screening
• Only for Category B projects and activities to determine if they need EIA

• Category A projects compulsorily need EIA

• Scrutiny of an application seeking EC by SEAC for determining whether or
not the project or activity requires further environmental studies
– Form 1
– Form 1A

• Classify projects as B1 (require EIA) and B2 (don’t require EIA)

• For categorization of projects into B1 or B2, the MoEF shall issue

appropriate guidelines from time to time
 Stage 2: Scoping
• Who does the scoping?
– Expert Appraisal Committee (EAC) in the case of Category ‘A’ projects
• or activities
– State level Expert Appraisal Committee (SEAC) in the case of Category
• ‘B1’ projects

• Determine comprehensive Terms Of Reference (TOR) addressing all relevant

environmental concerns for preparation of an Environment Impact Assessment
(EIA) Report based on
– on the basis of the information furnished by applicant in the prescribed application
Form1/Form 1A including
– proposed by the applicant
– a site visit by a sub- group of EAC or SEAC only if considered necessary
 Stage 3: Public consultation
• Process by which the concerns of local affected persons and others
who have plausible stake in the environmental impacts of the project
or activity are ascertained

• All Category ‘A’ and Category B1 projects or

• activities shall undertake Public Consultation
• –A big list of exceptions
 After public consultation…
• Applicant shall address all environmental concerns expressed during
this process

• Make appropriate changes in the draft EIA

• Final EIA report shall be submitted by the applicant to the concerned

regulatory authority for appraisal
 Stage 4: Appraisal
• Detailed scrutiny by the EAC or SEAC of
– documents like the Final EIA report
– outcome of the public consultations including public hearing
proceedings
– submitted by the applicant to the regulatory authority concerned
for grant of environmental clearance
• Appraisal of all projects or activities which are not required to undergo public consultation, or
submit an Environment Impact Assessment report (Category B2) shall be carried out on the basis
• prescribed application Form 1
• Form 1A
• any other relevant information
 Grant or Rejection of EC
• The regulatory authority shall consider the recommendations of the
EAC or SEAC concerned and convey its decision to the applicant
• The regulatory authority shall normally accept the
recommendations of the Expert Committees
• In cases where it disagrees with the recommendations of the Expert
Committee (Central or State), the regulatory authority shall
request reconsideration by the Central or State Expert Appraisal
Committee

• After reconsideration, irrespective of views of Expert Committee,

decision of the regulatory authority concerned shall be final
 Validity of Environmental Clearance
• Ten years in the case of River Valley projects
• Thirty years for mining projects
• Five years in the case of all other projects and activities
• Area Development projects and Townships, the validity period shall
be limited only to such activities as may be the responsibility of the
applicant as a developer
 Post Environmental Clearance Monitoring

• Mandatory for the project management to submit half-yearly

compliance reports in respect of the stipulated prior environmental
clearance terms
 ABOUT OSMEFWC PORTAL

• In order to bring more transparency and accountability in the forests,

environment and wildlife clearance process, Ministry of Environment,
Forests and Climate change, Government of India has rolled out a
portal named as “Online Submission & Monitoring of Environmental,
Forests and Wildlife Clearance” (OSMEFWC).
 OBJECTIVE
• The following are the main objectives of the system:

• Enhance efficiency, transparency and accountability in the forest,

environment and wildlife clearance process.
• Reduction in turnaround time for activity.
• Enhance responsiveness through workflows automation and availability
of real time information.
• Enhance ease and convenience of citizens and businesses in accessing
information and services.
• Achieve standardization in processes across regional and state level.
ROLES OF PROCESSING AUTHORITY
FOR ENVIRONMENTAL CLEARANCE
1. Login to the portal and reviews the
1. SECTION clearance submitted. Assigning fie
OFFICER
number and forwards to the joint
directory
2. Reviews and gives remarks and
2.JOINT forwards to the member secretary
DIRECTOR 3. Examine for completeness; if not
complete then resubmission has to be
done : assign file number and submits
the hard copy to the ministry : if the
3.MEMBER project is accepted them clearance
SECRETARY report is sent
 ROLES OF PROCESSING AUTHORITY
FOR FOREST CLEARANCE
1. Nodal Officer can examine the proposal for its completeness and the same will be
forwarded (after assigning State Serial No.) If proposal is not complete, Nodal Officer
1. NODAL OFFICER can raise query and may ask U.A.to submit the complete proposal. After checking the
completeness Nodal Officer would ask U.A. to submit the hard copies of the proposal in
DFO/DC (Deputy Conservator) office.
2. DFO 2. After receiving the proposal online from Nodal Officer, the concerned DFO can view
the proposal (Form-A, Form-B, Form-C submitted by U.A.) and then may upload their
Site Inspection Report and Recommendations the proposal would be forwarded to
concerned Circle Officer (CF/CCF) (Chief Conservator of Forest).
3. CF
3. After receiving the proposal online, then may upload his/her Recommendations the
proposal would be forwarded to concerned Nodal Officer automatically.
4. after receiving, he can view and may upload any recommendations. forwarded to
4. STATE SECRETARY either Regional Office or Head Office of Ministry depending upon the category, area and
Shape of forest land proposed to be diverted. Some proposals (0-5 ha except mining,
Hydel and regularization of encroachments) can be decided at this level also.
5. REGIONAL OFFICE AND 5. Approval and then approval letter submitted on portal – District collector after viewing,
ITS HEAD QUARTERS
has to upload FRA (Forest Right Act) document
Details of TOR Form, to be filled in by UA
• NOC – No
Objection
Certificate
• SPCB –
State
Pollution
Control
Board
 FOREST CLEARANCE
• It is important as Environmental Clearance
• If any project involves de-reservation of reserve forest or use of forest land
needs clearance under the Forest (conservation) act 1980, and Forest
(Conservation) rules 1981
• This clearance is first given by State government and then Central
government
• The Central Ministry of Environment and Forest (MEF) has issued detailed
guidelines with reference to the rules.
• The Ministry has vide its office memo No.J-11015/14/82-EA.5/1A of
September 1988 directed project owners/proposers that when a project
requires both environmental clearance and approval under the forest
(conservation) act 1980, proposal of both must be simultaneously given to
the corresponding divisions in that ministry
• The processing and clearance /rejection will be done simultaneously
for the two, although separate letters for each may be issued.
• If only Environmental clearance is required, the case will be processed
only for Environmental clearance
Single window clearance process
• Copies of application have to be sent to the State Forest Department
and State Pollution Board concerned
• Decision is normally given within six weeks
• You must know the rules and procedures and the MEF’s guidelines to
be effective in actions in this important area
• MPI manual carries a summary of rules and procedures for forest
clearance
To avoid back reference, following issue must be covered
• Justification for locating the project in the forest area and also the
reason for rejecting the alternatives
• Species wise and diameter class wise list of trees to be felled
• A map showing location of areas to be deforested to a scale of
1:50,000
• Detailed and satisfactory proposals for rehabilitation of affected
persons (non forest land should be identified for rehabilitation)
• In case of mining projects, the procedure for stocking up of the top
soil for re-use and phased reclamation programme concurrently with
the mining operation
• Impact of mining on water, forest and other vegetation
• Reason why the project cannot be located outside the forest area
• Cost benefit analysis of all proposals involving 5 ha in plains and 2 ha
in hills for diversion of project land for non forest use
• Monitory mechanism of compensatory afforestation; houses should
not be build after clearing forest
• Irrigation projects – detailed catchment treatment plan
Compensatory afforestation
• According to Forest Conservation Rules, 1981, prescribe steps to
compensate forest area
• It shall be raised over non forest land for equivalent area
• If non forest area is unavailable, plantations can be raised over
degraded forest twice in extent to area being diverted
• When non forest land is available less than that of forest land ,
plantation is raised in non forest land plus the degraded land twice to
extent of difference between the forest land being diverted and
available non forest land
Compensatory afforestation is not needed when
• Area of land is less than 1 ha and unless asked by department
• In transmission lines, afforestation is not needed when diverted area is
less than 10ha
Availability of non forest land for afforestation will be accepted
by the government only on a certificate effect from Chief Secretary to
the State/Union territory government
Elements of scheme for compensatory
afforestation
• Details of non forest land and degraded land acquired for
compensatory afforestation
• Delineation of proposed area of suitable map
• Agency responsible for afforestation
• Details of work schedule proposed for compensatory afforestation
• Provision of funds and utility of funds for afforestation
• Details of proposed monitoring system
Lands identified for CA must be handed over to the government
Special funds
• The state / UT government should create a special fund so that the
agency involved in afforestation can withdraw the funds for
afforestation
• A nodal officer is appointed to interfere with the project enterprise and
he must monitor the implementation process