Environmental Clearances

Entrepreneurs are required to obtain Statutory clearances relating to Pollution Control and Environment for setting up an industrial project. A Notification issued under The Environment Protection Act 1986 has listed 29 projects in respect of which environmental clearance needs to be obtained from the Ministry of Environment and Forests, Government of India. The list of includes industries like petro-chemical complexes, petroleum refineries, cement, thermal power plants, bulk drugs, fertilizers, dyes, paper etc. However if the investment is less than Rs. 500 million, such clearance is not necessary, unless it is for pesticides, bulk drugs and pharmaceuticals, asbestos and asbestos products, integrated paint complexes, mining projects, tourism projects of certain parameters, tarred roads in Himalayan areas, distilleries, dyes, foundries and electroplating industries. Further, any item reserved for the small-scale sector with investment of less than Rs 10 million is also exempt from obtaining environmental clearances from the Central Government under the Notification. Powers have been delegated to the State Governments for grant of environmental clearances for certain categories of thermal power plants. Setting up industries in certain locations considered ecologically fragile (e.g. Aravalli Ranges, coastal areas, Doon Valley, Dahanu, etc) are guided by separate guidelines issued by the Ministry of Environment and Forests of the Government of India