Regulatory Streamlining and Project Compliance: ESG BROADCAST shares key takeaways.
The Ministry of Environment, Forest, and Climate Change (MoEFCC) in India issued a crucial Office Memorandum (OM) on November 25, 2025, to clarify the implementation of its Standard Operating Procedure (SOP) concerning project compliance. This clarification addresses the process for projects requiring prior Environmental Clearance Process (EC) but which are exempted from obtaining a Consent to Establish (CTE) from State Pollution Control Boards (SPCBs)/Pollution Control Committees (PCCs). The original exemption was mandated by notifications released on November 12, 2024, designed to reduce bureaucratic duplication in project approvals.
The SOP, detailed in previous OMs from January and October 2025, sought to operationalize this exemption by requiring comments from the SPCBs/PCCs via the PARIVESH digital portal before the EC could be granted. The system was made live on the PARIVESH platform effective from October 24, 2025, covering all EC applications. However, the Ministry received representation from SPCBs indicating an unintended bottleneck.
The issue arose because certain projects, specifically those related to the mining of minor minerals like sand and stone, did not require CTE even prior to the November 2024 exemption. Under the new SOP, these non-CTE-mandated activities were still being directed to the SPCBs/PCCs for comments, causing unnecessary delays in the Environmental Clearance Process. The inclusion of these projects did not align with the intent of incorporating additional environmental safeguards, as none were previously mandated by SPCBs.
The MoEFCC examined the matter and clarified that the original OMs regarding the SOP apply strictly only to those projects where both EC and CTE were mandatory requirements prior to the November 12, 2024 notifications. The Ministry stated that for proposals requiring EC but for which CTE was never mandated, the concerned State Environmental Impact Assessment Authority (SEIAA) may now proceed with the grant of EC. This is permitted without waiting for comments or fee payments from the SPCBs/PCCs, thereby providing targeted Regulatory Streamlining for specific project types.
In a related transitional measure, the Ministry considered requests for deferment to ensure smooth transition and capacity building. As a result, the ‘designated date’ for certain provisions in the October 2025 OM has been extended to January 31, 2026. Projects granted EC between November 12, 2024, and the new date of January 31, 2026, and which previously required CTE, must seek environmental safeguards from the SPCB/PCC within 30 days of the new date or the grant of EC. This provides a clear path for ongoing Project Compliance.
Strategic significance lies in the precise definition of the Environmental Clearance Process scope, which immediately unblocks certain infrastructure and mining projects from bureaucratic limbo. By exempting projects that were not traditionally under the CTE framework from the new SPCB/PCC comment requirement, the government ensures that its goal of Regulatory Streamlining is realized without creating new, unintended barriers to investment and development. This clarity is essential for project proponents to maintain definitive Project Compliance timelines and manage regulatory risk effectively.
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