Draft EIA Amendment: MoEFCC Proposes Raising Non-Coal Mining EC Appraisal Threshold from 250 to 500 Hectares

The Ministry of Environment, Forest and Climate Change (MoEFCC) has proposed an amendment to the Environment Impact Assessment (EIA) Notification, 2006, to raise the Environmental Clearance (EC) appraisal threshold for non-coal mining projects from 250 hectares to 500 hectares. The proposed change is intended to further decentralise the EC process by bringing eligible non-coal mining projects with lease areas up to 500 hectares under the State-level appraisal framework. The Ministry has cited the experience of State Environment Impact Assessment Authorities (SEIAAs), the availability of qualified experts through State Expert Appraisal Committees (SEACs), the online EC process through the PARIVESH portal, and the existing 500-hectare delegation for coal mining projects. 

The proposal is currently at the draft stage and is not yet an effective change. The notification provides 60 days for interested persons to submit objections or suggestions before the Central Government considers the proposal. Businesses involved in non-coal mining should track the final notification and assess how the proposed threshold could affect their Environmental Clearance process.

Effective Date and Current Status of the Draft Amendment

The proposed amendment is currently at the draft stage. The key points regarding its status are:

• Current status: Draft notification is not a final amendment. 
• Proposed change: Increase the non-coal mining EC appraisal threshold from 250 hectares to 500 hectares. 
• Consultation period: The draft will be considered after 60 days from the date copies of the Gazette containing the notification are made available to the public. 
• Objections and suggestions: Interested persons may submit their objections or suggestions to the Secretary, Ministry of Environment, Forest and Climate Change during the specified period. 
• Effective date: The shared notification does not specify a final effective date for the proposed 500-hectare threshold. 
• Current compliance position: Businesses should continue following the applicable provisions currently in force until the amendment is formally finalised and notified.

What Is the Proposed Amendment?

The central change relates to Item 1(a) in the Schedule to the EIA Notification, 2006.

The draft proposes the following changes:

In simple terms, the proposal would increase the threshold from 250 hectares to 500 hectares.

The proposed amendment is intended to shift the appraisal responsibility for a larger group of non-coal mining projects towards the State-level Environmental Clearance mechanism. This is primarily an administrative and appraisal-level change. It should not be interpreted as an exemption from Environmental Clearance or other environmental obligations.

The requirement to comply with the applicable environmental laws, conditions and regulatory requirements would continue to apply to projects covered by the EIA framework.

Background of the EIA Notification, 2006

The proposed amendment is linked to the Environment Impact Assessment (EIA) Notification, 2006 issued on 14 September 2006. The notification requires prior Environmental Clearance for specified projects and activities listed in its Schedule.

For State-level implementation, State Environment Impact Assessment Authorities (SEIAAs) were constituted under Section 3(3) of the Environment (Protection) Act, 1986. These authorities exercise delegated powers to consider and grant EC for applicable Category B projects.

The draft also notes that:

• Environmental Clearance for minor mineral mining projects, irrespective of mine lease area, has been delegated to the SEIAA level. 
• Regulation of mining activities, including prevention of illegal mining, primarily falls under the respective State Governments. 
• Such mining regulation operates under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and the rules made under it. 
• SEIAAs have gained substantial experience in EC appraisal over the past two decades. 
• The State-level EC process has been made completely online through the PARIVESH portal. 

This existing State-level framework forms the basis for MoEFCC's proposal to further decentralise EC appraisal for non-coal mining projects.

Why Has MoEFCC Proposed Raising the Threshold to 500 Hectares?

MoEFCC has proposed the increase after considering the experience and capacity already available at the State level. The Ministry has noted that SEIAAs have handled Environmental Clearance appraisals for around two decades, while the State-level process is now fully online through the PARIVESH portal.

The draft notification highlights the following reasons for raising the threshold:

• State-level experience: SEIAAs have gained substantial experience in the EC appraisal process.
• Qualified experts: The eligibility criteria for experts nominated to EACs and SEACs are identical and governed by Appendix VI of the EIA Notification, 2006.
• Online processing: The PARIVESH portal has made the State-level EC process completely online for more efficient and transparent disposal.
• Existing coal mining framework: States have already been delegated powers to appraise coal mining projects up to 500 hectares.
• Request from the Ministry of Mines: The Ministry of Mines has requested similar delegation for non-coal mining projects with lease areas up to 500 hectares.
• Further decentralisation: MoEFCC considers raising the threshold from 250 to 500 hectares appropriate for facilitating EC appraisal at the State level.

What Does the Amendment Mean for the Appraisal Authority?

The proposed amendment is mainly about where eligible non-coal mining projects are appraised for Environmental Clearance. MoEFCC proposes to extend the State-level appraisal framework to non-coal mining projects with lease areas up to 500 hectares.

Under the proposed framework:

• SEIAA: State Environment Impact Assessment Authorities would handle the Environmental Clearance process for eligible projects at the State level.
• SEAC: State Expert Appraisal Committees would assist SEIAAs by carrying out the required technical appraisal.
• Projects up to 500 Hectares: Non-coal mining projects falling within the proposed threshold could be considered through the State-level mechanism if the amendment is finalised.
• Greater Decentralisation: The proposal would move a wider range of non-coal mining EC proposals to the State level instead of retaining the existing 250-hectare threshold.
• No Automatic Exemption: The change concerns the appraisal authority and threshold. It does not by itself remove the Environmental Clearance requirement, or other applicable environmental and mining obligations.

The proposed approach is based on MoEFCC's view that SEIAAs and SEACs have gained sufficient experience and expertise to handle a wider range of non-coal mining proposals at the State level.

How Will the Proposed Amendment Affect Non-Coal Mining Projects?

The proposed change is particularly relevant to non-coal mining projects with lease areas between 250 hectares and 500 hectares. If the amendment is finalised in its proposed form, these projects could come under the State-level Environmental Clearance appraisal mechanism. The expected impact includes:

• Greater State-level Involvement: Eligible projects could be appraised through SEIAA and SEAC.
• Wider State-level Coverage: More non-coal mining projects could fall within the State-level appraisal framework.
• Change in Appraisal Authority: Projects currently falling above the 250-hectare threshold may see a change in the level at which their EC proposals are considered.
• Potential Process Efficiency: Decentralisation may support more efficient handling of eligible proposals, although it does not guarantee faster Environmental Clearance.
• Continued Compliance: Project proponents would still need to meet applicable EC requirements, environmental conditions and other mining-related obligations.

What Are the Expected Benefits of the Proposed Amendment?

If the proposal is finalised substantially as drafted, the increase in the threshold could provide a more decentralised approach to Environmental Clearance appraisal for eligible non-coal mining projects.

The key expected benefits include:

• Greater State-level role: More eligible projects could be handled through State-level authorities. 
• Expanded role of SEACs: SEACs could receive a wider range of non-coal mining proposals for technical appraisal. 
• Reduced Central-level burden: Some projects could move away from the Central-level appraisal mechanism. 
• Potentially smoother coordination: Project proponents may have greater interaction with authorities at the State level. 
• Better alignment: The proposed 500-hectare threshold would align non-coal mining with the existing delegation referred to for coal mining projects. 

These benefits should be viewed as potential outcomes, rather than guaranteed improvements in approval timelines. The quality of project submissions and compliance with appraisal requirements will continue to influence the overall process. 

What Does the Proposed Change Mean for Environmental Clearance Compliance?

The proposed amendment changes the appraisal threshold, but it does not mean that non-coal mining projects up to 500 hectares will automatically be exempt from Environmental Clearance. Project proponents will still need to determine whether their activities fall within the applicable entries of the EIA Notification, 2006 and follow the requirements that apply to their projects.

Businesses should keep the following compliance areas separate:

• Environmental Clearance requirement
• Authority responsible for appraisal
• Project category
• Lease-area threshold
• Conditions attached to the EC
• Other mining and environmental permissions

The draft also makes it clear that mining regulation is not limited to the EC framework. Requirements under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and applicable State rules must also be considered. Therefore, a change in the EC appraisal mechanism should not be treated as a replacement for other mining approvals or regulatory obligations.

Environmental and Operational Compliance Considerations

Even if the threshold is increased to 500 hectares, mining businesses will continue to deal with environmental impacts arising from their operations. Depending on the project, compliance planning may need to address:

• Land disturbance and soil management
• Air emissions and dust
• Water consumption and water resources
• Waste generation
• Biodiversity
• Noise and vibration
• Transportation-related impacts
• Rehabilitation and restoration of mined areas
• Impacts on surrounding communities

The proposed change in the appraisal threshold does not remove the responsibility of project proponents to comply with the conditions attached to their Environmental Clearance. Businesses should treat EC compliance as an ongoing responsibility, rather than a one-time approval requirement.

What Should Businesses Do Now?

Since the proposal is still at the draft stage, businesses should focus on monitoring, reviewing and preparing rather than immediately changing their compliance strategy.

• Track the final notification: Monitor further updates from MoEFCC, and review the final wording before relying on the proposed 500-hectare threshold.
• Review lease areas: Identify current and proposed non-coal mining projects falling between 250 and 500 hectares as these are likely to be most directly affected.
• Review EC applications: Businesses with applications under preparation or already in process should assess their position, but should not automatically change their strategy based only on the draft.
• Keep documentation updated: Maintain project details, mining lease information, mining plans, environmental studies, land records, existing approvals and EC-related documents.
• Review other approvals: Map the project's requirements under applicable mining laws, environmental regulations and State-level rules separately from the EC appraisal process.
• Monitor State-level procedures: If finalised, the proposal could increase the role of State-level authorities in appraising eligible non-coal mining projects.
• Consider submitting comments: Businesses and other affected stakeholders can review the draft and consider submitting objections or suggestions within the prescribed consultation period.

Public Consultation and 60-Day Objection Period

The draft notification provides stakeholders with an opportunity to submit their objections or suggestions before the Central Government considers the proposed amendment. The notification states that the draft will be taken into consideration after 60 days from the date on which copies of the Gazette containing the notification are made available to the public.

Interested persons may submit their views in writing to the Secretary, Ministry of Environment, Forest and Climate Change within the specified period.

The consultation process is important because the current proposal is not the final amendment. Businesses and other stakeholders should distinguish the regulatory process as follows:

Draft notification - 60-day consultation period - Consideration by Central Government - Final notification

Until the amendment is formally finalised and notified, businesses should not treat the proposed 500-hectare threshold as the operative requirement. 

Compliance Checklist for Non-Coal Mining Companies

Businesses can use the following checklist while monitoring the proposed amendment:

Who Should Closely Monitor This Amendment?

The proposal is particularly relevant to:

• Non-coal mining companies
• Mining lease holders
• Companies planning new non-coal mining projects
• Mineral extraction businesses
• Mining project developers
• Environmental consultants
• Regulatory compliance teams
• Legal and corporate affairs teams handling mining approvals
• Industry associations
• State-level mining stakeholders
• Businesses with projects between 250 and 500 hectares

How Can Corpseed Help?

Keeping up with Environmental Clearance requirements can be difficult for mining businesses, especially when proposed regulatory changes may affect how projects are appraised. The proposed increase in the non-coal mining threshold makes it important for businesses to understand their present compliance position while monitoring the final regulatory outcome. 

Corpseed supports businesses with practical regulatory guidance to help them assess project requirements, manage documentation and stay prepared for changes in the Environmental Clearance framework.

Our Services Include:

• EC Requirement Assessment: Reviewing the nature, category and lease area of a mining project to identify the Environmental Clearance requirements applicable under the current framework.
• Compliance Documentation: Helping businesses organise and review the project information, environmental records and supporting documents required for regulatory submissions.
• Mining Compliance Advisory: Guiding the environmental and mining-related approvals that may apply alongside the Environmental Clearance process.
• Project Compliance Review: Assessing existing and proposed projects to identify areas that may require attention, particularly where the lease area falls within the proposed 250-500 hectare range.
• Regulatory Change Support: Helping businesses understand the practical implications of the proposed EIA amendment and prepare for the final regulatory position.
• PARIVESH Support: Assisting with the review of information and documentation required for online Environmental Clearance processing through the PARIVESH portal.
• Compliance Gap Identification: Reviewing current compliance practices to identify potential gaps and providing practical recommendations for addressing them.
• Ongoing Regulatory Assistance: Supporting businesses with continued compliance guidance and regulatory monitoring as Environmental Clearance requirements and related provisions evolve.

Compliance Action: Mining companies should track the final MoEFCC notification, review projects falling within the 250-500 hectare range, assess the impact on their Environmental Clearance strategy and update their compliance approach once the amendment is officially finalised.