The Ministry of Environment, Forest and Climate Change (MoEFCC) recently amended the Islands Protection Zone (IPZ) Notification, 2011 to align it with the Environment Impact Assessment (EIA) Notification, 2006. The amendment, which addresses significant issues such as clearance validity, project transferability, and extension clauses, aims to make the clearance process more effective and compliant while ensuring constant environmental protection for India’s coastal and island ecosystems.

Key Amendments: Aligning with EIA Notification

One of the key changes introduced by this amendment is to bring the IPZ notification into the larger framework of EIA notification. Under the EIA notification, any new industrial projects or expansion of existing projects will necessitate prior environmental approval, and this will now be included in the IPZ clearance process also. Clearances under the IPZ notification will now follow certain timelines and requirements set out in the EIA framework, confirming they are reliable with national environmental policies.

Extension of Validity Period for IPZ Clearances

Another significant modification is the extension of the validity period for IPZ clearance. Earlier, the validity period f clearances was set to short time frames. With the amendment, the clearance permitted under IPZ notification will now remain valid for ten years, providing greater stability and predictability to project developers. If the applicant requires more time, the validity can be extended by up to an additional year. However, such an extension would need the applicant to submit an application within the original deadline and provide recommendations to the Coastal Zone Management Authority (CZMA). The amendment also underlines explicit provisions for delays in filing extension requests, including waiving delays for up to 90 days.

Provisions for Transfer and Splitting of Clearances

A significant addition to this amendment is the provision permits the transfer of IPZ clearance during its validity. If a project or activity is transferred to another legal entity, you can transfer the clearance to a new entity, provided it follows the same terms and conditions as the original approval. Moreover, if any project is divided between two or more legal entities, the clearance can be divided consequently, letting multiple entities to undertake parts of the same project under the same environmental conditions. 

This flexibility will be especially beneficial for large, complex projects or joint ventures or those relating joint ventures. It also ensures that all entities involved are in compliance with environmental standards.

Impact of COVID-19 on Clearance Validity

Recognizing the challenges posed by the COVID-19 pandemic, the amendment includes a special provision stating that the period from April 1, 2020, to March 31, 2021, will not be counted when calculating the validity of IPZ clearances. This is aimed at providing relief to developers whose projects faced delays due to the pandemic and consequent lockdowns.

Implications for Project Developers and Stakeholders

The revised IPZ notification is expected to have broad implications on stakeholders in coastal and island development projects. Alignment with the EIA framework ensures that the environmental clearance process is more constant and predictable, enabling smoother project approvals. Developers and industries involved in projects in IPZ areas will profit from clearer timelines, more flexible clearance validity periods, and smoother transition and distribution clauses. These changes are mainly significant for those projects that may involve multiple stakeholders or changes in ownership during the project lifecycle.

For environmental agencies, the amendments will streamline the monitoring process and ensure that projects comply with national environmental standards. This move reflects the government’s commitment to maintaining a balance between economic growth and environmental protection

The Amendments to the Islands Protection Zone (IPZ) Notification are an important step in improving India’s coastal development policies. Aligned with the Environment Impact Assessment (EIA) framework, the government has simplified the clearance process, making it more flexible and efficient. These changes will streamline project approvals, minimize compliance burdens, and ensure continued protection for India’s environmentally sensitive coastal areas.