Star-Rating System for State Environmental Bodies

Star-Rating System for Environmental Clearances

On January 17, 2022, the Ministry of Environment, Forest and Climate Change (MoEF&CC) introduced a star-rating system to evaluate State Environmental Impact Assessment Authorities (SEIAAs). The purpose was to assess their efficiency in granting clearances for industrial and infrastructure projects. The star ratings ranged from 0 to 7, with higher ratings reflecting:

• Faster approval times.
• Stricter adherence to timelines set out in the 2006 Environment Impact Assessment (EIA) Notification.

Objective and Purpose

• Promoting Ease of Doing Business: The Ministry’s aim was to streamline the environmental clearance process to foster a more business-friendly environment, while also maintaining regulatory standards.
• Incentivizing States: The star-rating system was designed to:
  • Recognize and incentivize states that adhered to timelines and regulatory standards.
  • Encourage environmental bodies to expedite the clearance process without compromising the environment.

Challenges and Legal Dispute

The introduction of the star-rating system faced significant opposition, particularly from environmental advocacy groups.

• Concerns Raised by Tamil Nadu Fishermen's Association: The Tamil Nadu Fishermen's Association argued that the star-rating system could compromise the scrutiny of environmental clearances.
  • Their concern was that the emphasis on speeding up the clearance process could dilute the thoroughness required in assessing projects that may impact environmentally sensitive areas.
  • They emphasized the risk of weakening the environmental safeguards essential for protecting local ecosystems, biodiversity, and community livelihoods.
• Legal Challenge: The dispute led to intervention by the National Green Tribunal (NGT). The NGT issued an order noting that the MoEF & CC had effectively "given up" on the system.
  • The Ministry withdrew the original Office Memorandum (OM) dated January 17, 2022, with a possibility of issuing a revised memorandum in the future.

Star-Rating System for Environmental Clearances FAQs

Q1. What is the star rating system for SEIAA?

Ans. The star rating system evaluates environmental performance of projects, awarding stars based on compliance with environmental standards and sustainability.

Source: NIE