There has been much discussion about bringing the GDP growth on track and the need for expediting infrastructure projects in this regard. At the Planning Commission Meeting to approve the Twelfth Five Year Plan, last month, there were concerns about the implementation of such projects because of the delay in the grant of environment and forest clearances. In this context, there has been talk of setting up a singular body that will grant approvals for large infrastructure projects. News reports suggest that the government is considering forming a National Investment Approval Board (NIAB). The NIAB will be responsible for expediting the clearances for mega project proposals above a certain financial threshold. The Board would be headed by the Prime Minister and will have the authority to provide the ‘final decision’ on investment projects. According to news reports, the NIAB will be the final decision making body. The Ministry of Environment & Forests (MoEF) has raised concerns that this would create ambiguity in the current process of granting clearance for projects. While the formation of the NIAB is still being deliberated and discussed, it would be relevant to understand the process that the MoEF follows before granting clearance to a project and look at data on number of clearances granted and pending. The MoEF has developed certain processes to examine the potential environmental impact of new projects or expansion of existing projects. These are contained in the Environment Impact Assessment Notification, 2006. This notification empowers the Expert Appraisal Committees (EAC) to review the environmental impact of projects. The EAC carries out a combination of these steps depending on the classification of the project:
The MoEF considers the grant of environmental clearance to development projects in terms of the provisions of EIA Notification, 2006. From July 13, 2011 to July 12, 2012 the MoEF has given environmental clearances to 209 development projects. For a sector wise break up see Table 1. Table 1: Number of Environment Clearances Accorded
Sector | No. of projects accorded EC |
Industry (Steel & Cement) |
88 |
Thermal Power |
29 |
River Valley and Hydro-electric |
6 |
Coal Mining |
29 |
Non-Coal Mining |
25 |
National Highways |
32 |
Total |
209 |
Source: “Environmental Clearance accorded from 13.07.2011 to 12.07.2012”, MoEF A total of 593 proposals are pending for environmental clearance as on August 13, 2012.[i] It remains to be seen how the process of granting clearances as established by the MoEF will be reconciled with the expedited process of the NIAB.
[i] MoEF, Lok Sabha, Unstarred Question no. 637, August 13, 2012,
Parliament has announced the ministries whose Demands for Grants will be discussed in detail in the Lok Sabha (after April 12 when Parliament reconvenes). They are:
Defence
Rural Development
Tribal Affairs
Water Resources
External Affairs
Road Transport and Highways
Together these ministries have asked Parliament for a total of Rs 289,938 crore (Rs 175,772 crore for Defence alone) – which is slightly over a quarter of the total expenditure budgeted by the Central Government for 2010-11.
The Rajya Sabha does not discuss demands for grants but has announced a list of ministries whose functioning it will review after the recess. They are:
Home Affairs
Tribal Affairs
Defence
Power
Chemicals and Fertilizers
Petroleum and Natural Gas
Youth affairs and Sports
Women and Child Development
Consumer affairs, Food and Public Distribution
Housing and Urban Poverty Alleviation