The government has extended the validity period of environmental clearance granted to port, harbour, breakwater and dredging projects to 20 years from the existing 10 years, with a provision for two further extensions of five years each subject to compliance with certain safeguards. The move is seen as a major reform for the port sector as the government aims to raise port capacity to 10,000 million metric tonnes per annum by 2047 from the existing 2,762 MMTPA. "The port sector and business stakeholders will greatly benefit from the extended validity period for long-term business perspectives," said M Angamuthu, chairperson of Mumbai Port Authority, one of the dozen ports owned by the central government. "This reform will facilitate large investments from local and global port operators," he added. Read more - Sulphur prices surge: Govt plans differential subsidies for DAP production The longer validity of environmental clearances for ports, harbours, breakwaters and dredging was notified in the gazette on Monday through an amendment to the notification issued on September 14, 2006, under the Environment (Protection) Act, 1986. Live Events The rule change applies to future projects as well as those where the green clearance validity is still active and which are not yet completed. Extension of the clearance beyond 20 years is subject to a central or state-level expert appraisal committee examining the adequacy of the safeguards as per the existing approval and incorporating any additional measures to the environmental management plan if required, Rajat Agarwal, joint secretary at the Ministry of Environment, Forest and Climate Change, wrote in the September 21 gazette notification. "Further, in deserving cases, where the project has been unable to be operationalised within this extended period, the expert appraisal committee or state-level expert appraisal committee may examine the project and recommend the extension of environmental clearances for a further period of five years, if deemed appropriate...," the notification said. This too is subject to a committee examining the existing safeguards and adding new measures if required. Until now, only one year of extension was allowed to the initial 10 years. The decision follows requests from stakeholders citing the long gestation nature and phased development characteristic of such projects due to issues often beyond their control. "Across the project life cycle, several non-major ports are either under development or involved in various stages of litigation. It has been observed that, by the time these issues are resolved, the validity of clearances, particularly the environmental clearance, tends to expire or approach expiry," Karnataka Maritime Board chief executive officer HC Balachandra said. "Extending the validity period will provide greater certainty to stakeholders, particularly non-major ports and state governments, in undertaking projects such as those envisaged in Keni, Karwar, Manki and Kundapur. It will also enhance the confidence of port developers in the environmental clearance framework and facilitate smoother project implementation," he said. Once the validity expires, the process of securing a fresh environmental clearance typically takes at least three years and requires a shoreline study and public hearing. The longer validity of green clearance would greatly benefit projects by reducing redundancy in the application and study processes, thereby expediting project timelines, said Sameep Jain, founder of a transaction advisory firm Black Brix. "Given the long gestation and phased nature of port development, the extended validity of environmental clearance will build confidence in developers, investors, and financing agencies, particularly for large-scale projects requiring significant upfront capital and long-term investment commitments," Jain said. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel)
Green clearance validity for ports extended
The government has extended the validity period of environmental clearance granted to port, harbour, breakwater and dredging projects to 20 years from the existing 10 years, with a provision for two further extensions of five years each subject to compliance with certain safeguards. The move is seen as a major reform for the port sector as the government aims to raise port capacity to 10,000 million metric tonnes per annum by 2047 from the existing 2,762 MMTPA. "The port sector and business stakeholders will greatly benefit from the extended validity period for long-term business perspectives," said M Angamuthu, chairperson of Mumbai Port Authority, one of the dozen ports owned by the central government. "This reform will facilitate large investments from local and global port operators," he added. Read more - Sulphur prices surge: Govt plans differential subsidies for DAP production The longer validity of environmental clearances for ports, harbours, breakwaters and dredging was notified in the gazette on Monday through an amendment to the notification issued on September 14, 2006, under the Environment (Protection) Act, 1986. Live Events The rule change applies to future projects as well as those where the green clearance validity is still active and which are not yet completed. Extension of the clearance beyond 20 years is subject to a central or state-level expert appraisal committee examining the adequacy of the safeguards as per the existing approval and incorporating any additional measures to the environmental management plan if required, Rajat Agarwal, joint secretary at the Ministry of Environment, Forest and Climate Change, wrote in the September 21 gazette notification. "Further, in deserving cases, where the project has been unable to be operationalised within this extended period, the expert appraisal committee or state-level expert appraisal committee may examine the project and recommend the extension of environmental clearances for a further period of five years, if deemed appropriate...," the notification said. This too is subject to a committee examining the existing safeguards and adding new measures if required. Until now, only one year of extension was allowed to the initial 10 years. The decision follows requests from stakeholders citing the long gestation nature and phased development characteristic of such projects due to issues often beyond their control. "Across the project life cycle, several non-major ports are either under development or involved in various stages of litigation. It has been observed that, by the time these issues are resolved, the validity of clearances, particularly the environmental clearance, tends to expire or approach expiry," Karnataka Maritime Board chief executive officer HC Balachandra said. "Extending the validity period will provide greater certainty to stakeholders, particularly non-major ports and state governments, in undertaking projects such as those envisaged in Keni, Karwar, Manki and Kundapur. It will also enhance the confidence of port developers in the environmental clearance framework and facilitate smoother project implementation," he said. Once the validity expires, the process of securing a fresh environmental clearance typically takes at least three years and requires a shoreline study and public hearing. The longer validity of green clearance would greatly benefit projects by reducing redundancy in the application and study processes, thereby expediting project timelines, said Sameep Jain, founder of a transaction advisory firm Black Brix. "Given the long gestation and phased nature of port development, the extended validity of environmental clearance will build confidence in developers, investors, and financing agencies, particularly for large-scale projects requiring significant upfront capital and long-term investment commitments," Jain said. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel)
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