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The balance between environment and industry

The balance between environment and industry
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The balance between environment and industry

  • The governments in developing countries face a complex dilemma - a political-economy challenge - necessitating a fine balancing.
  • This includes regulating projects with potential environmental impacts while also promoting investment and infrastructure development to spur economic growth and alleviate poverty.

Environmental Clearance and the EIA Rules

  • The Environmental Impact Assessment (EIA) rules aimed to strike a balance between development and environmental protection.
    • The rules were enacted in 2006 under the Environmental (Protection) Act.
  • Environmental Clearance (EC) is mandatory for various projects, including mining, thermal plants, and infrastructure programs.
  • However, according to reports, the balance between environment and industry seems to be tilting far too much towards the latter.

Loopholes in the EIA

  • In 2017, the government introduced a loophole to the EIA, granting a six-month moratorium to companies lacking EC compliance.
  • This one-time window was made indefinite in 2021, leading to criticism and legal challenges.
  • Over 100 projects, between 2017 and 2024, received ex post facto environmental clearance under the diluted EIA, raising concerns about environmental degradation.
    • These include coal, iron and bauxite mines, steel and iron factories, cement plants and limestone quarries

Political and Ideological Variances

  • Environmental clearances have been contentious across different governments and ideological spectrums.
  • The Environment Ministry has been labelled both "anti-business" and "anti-environment" at various times.
  • However, weakening the EIA and the National Green Tribunal is a matter of grave concern.

Urgent Need for Action

  • India's low ranking in the Environmental Performance Index underscores the urgency of addressing environmental concerns.
  • Viewing both environment and development as complementary rather than competing interests is crucial.

Call for Robust Policy Framework

  • Embracing environmentalism as a part of development and vice versa can position India as a global leader in sustainability.
  • For this, India requires a robust policy and regulatory framework that facilitates business while ensuring careful assessment of project impacts.
  • Constantly exploiting loopholes undermines environmental protection efforts and hampers long-term sustainable growth.

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