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What are the environmental clearances required for JVs in India?

Applicability of Environmental Laws

  • All joint ventures involved in infrastructure, manufacturing, energy, mining, and similar sectors must comply with environmental laws in India.
  • Key legislations include the Environment (Protection) Act, 1986, the Air (Prevention and Control of Pollution) Act, 1981, and the Water (Prevention and Control of Pollution) Act, 1974.
  • JVs must obtain necessary environmental clearances before starting operations.
  • Both domestic and foreign-partnered JVs are subject to the same environmental obligations.
  • Clearances are typically project-specific and depend on the type, size, and location of the project.

Environmental Impact Assessment (EIA) Clearance

  • Mandatory for projects listed in the Schedule of the EIA Notification, 2006, under the Environment (Protection) Act.
  • Required for activities such as mining, thermal power, cement, construction, ports, and industrial estates.
  • A detailed Environmental Impact Assessment (EIA) report must be submitted.
  • Public consultation and environmental management plans are part of the approval process.
  • Clearance is granted by the Ministry of Environment, Forest and Climate Change (MoEF&CC) or the State Environment Impact Assessment Authority (SEIAA).

Consent to Establish (CTE) and Consent to Operate (CTO)

  • Obtained from the State Pollution Control Board (SPCB) or Pollution Control Committee (PCC).
  • CTE is required before the construction or installation of the unit.
  • CTO is granted after installation and before commencing commercial operations.
  • Validity of CTE and CTO depends on the industry category (Red, Orange, Green).
  • Compliance with effluent discharge, emissions, and waste management norms is essential.

Forest and Wildlife Clearances

  • Required if the JV project involves the use of forest land or is near protected wildlife areas.
  • Governed by the Forest (Conservation) Act, 1980, and the Wildlife (Protection) Act, 1972.
  • Proposals must be approved by the MoEF&CC and the relevant forest departments.
  • Compensatory afforestation and environmental safeguards may be imposed.
  • Clearances are processed through the PARIVESH portal.

Hazardous Waste and E-Waste Management

  • JVs handling hazardous substances must comply with the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016.
  • Proper storage, treatment, and disposal facilities must be in place.
  • Authorization from the SPCB is mandatory for generation, handling, and transportation.
  • JVs in electronics or related sectors must also follow E-Waste (Management) Rules, 2016.
  • Regular filing of returns and maintenance of records are required for compliance.

Environmental Monitoring and Compliance

  • JVs must regularly monitor pollution levels and maintain environmental records.
  • Submission of environmental compliance reports and audits is mandatory.
  • Non-compliance can lead to fines, closure orders, or revocation of clearances.
  • Authorities may conduct inspections and enforce corrective measures.
  • Adoption of best environmental practices strengthens regulatory standing and stakeholder trust.

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