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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Green Initiatives

Himalaya Cements Ltd proposes a large new limestone mining and cement project. Its board asks the Company Secretary what must be obtained before construction begins for projects of this kind that are listed in the EIA notification issued under the Environment (Protection) Act, 1986. What is the correct advice?

The company must obtain prior environmental clearance, following the environmental impact assessment process, before starting construction of a listed project under the EIA notification issued under the Environment (Protection) Act, 1986. Clearance is needed in advance; consents from municipal bodies, exchanges or the ROC cannot substitute for it.

  1. APrior environmental clearance after the required environmental impact assessment processCorrect
  2. BOnly a consent from the local municipal body after construction is complete
  3. CRegistration with the stock exchange as an environmental issuer
  4. DA no-objection letter from the Registrar of Companies

Explanation

The EIA Notification issued under the Environment (Protection) Act, 1986 requires listed projects to obtain prior environmental clearance before starting construction or new activity, following screening, scoping, public consultation and appraisal as applicable. A post-construction municipal consent, stock exchange registration or ROC letter does not satisfy this requirement.

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