A recent order from the environment ministry easing the procedures for obtaining environmental clearances for coal-based power, steel and sponge iron projects by allowing parallel applications for the overall project as well as its linked mine, has been welcomed by developers.

However, the order specifies that the final overall sanction will still be dependent on the mine receiving Stage 1 forest clearance or in-principle permission for diversion of forest land for industrial use.

Formerly, project clearance could only be applied for after clearance for the mine had been obtained, a procedure that took anything from 18 months to a few years. Observers believe that these new norms will significantly reduce the time required by developers of such projects to get their proposals off the ground.

In the case of thermal projects, the ministry has further specified that detailed information of the coal linkage (either in the form of a mine, a fuel supply agreement or MoU for imports) as well as other parameters such as calorific value, ash content, etc will have to be specified before approval. In case of any subsequent change in any of the above, the project would have to be referred back to the ministry for a fresh environmental impact assessment.