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

Sagar Infra Ltd's Board is told that its proposed port expansion project may require prior environmental clearance. Which statement best reflects the Indian framework?

Prior environmental clearance under the EIA Notification, issued under the Environment (Protection) Act, 1986, is needed for notified project categories before construction or expansion begins. It depends on the project type, not on whether the company is listed or on Board approval.

  1. AClearance is granted by the Company Secretary after Board approval
  2. BPrior environmental clearance under the EIA Notification, issued under the Environment (Protection) Act, 1986, is required for notified categories of projects before construction startsCorrect
  3. CEnvironmental clearance is needed only after the project begins commercial operations
  4. DEnvironmental clearance is required only for listed companies

Explanation

The EIA Notification framed under the Environment (Protection) Act, 1986 requires notified project categories to obtain prior environmental clearance before construction or expansion. It applies to projects irrespective of whether the company is listed, and it is a precondition, not a post-operation step.

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