India’s cities are expanding rapidly, driving demand for commercial developments such as IT parks, office complexes, malls, and logistics hubs. However, this growth must not come at the cost of biodiversity. To ensure sustainability, every large commercial project must secure Environmental Clearance (EC) under the Environment (Protection) Act, 1986. Read this guide to understand everything about the EC process for 2024–25, including the latest legal updates, key exemptions, and the serious penalties for non-compliance.
What Is Environmental Clearance?
Environmental Clearance (EC) is an official approval that confirms a commercial project has taken the necessary measures to minimise its environmental impact. It is an important approval to get before initiating commercial construction projects in India, as stated by the Supreme Court. You can obtain this clearance by applying to the Ministry of Environment, Forest and Climate Change (MoEFCC) at the central level or the State Environment Impact Assessment Authority (SEIAA) at the state level, as per your project’s size, investment, and potential environmental impact.
Typically, any projects with a built-up area of more than 20,000 sq m require prior EC.
Major Objectives of Environmental Clearance
Check and Reduce Environmental Harm: Environmental Clearance (EC) makes sure that a project undergoes an assessment to check its possible harm to nature, such as air and water pollution, damage to soil, before starting construction. It also ensures steps are taken to reduce or fix these issues.
Encourage Sustainable Development: The EC process helps to ensure that the projects align with the Sustainable Development Goals (SDGs). This means using natural resources wisely, caring for local communities, and safeguarding the environment for future generations.
Legal and Social Accountability: Obtaining an EC certificate helps avoid legal penalties (ranging from ₹1 lakh to ₹15 crores), project delays, and reputational damage.
Legal Framework Governing Environmental Clearance
Environmental Clearance (EC) for commercial construction is based on strong laws and regulations that make sure development does not harm the environment or public health.
The following are the core rules and regulations governing EC in India:
1. Environment (Protection) Act, 1986
This is also called India’s umbrella law. Under it, the central government set various rules and notifications to safeguard the environment and control future pollution. The EP Act forms the legal basis for the issuance of notifications and rules, including the EIA Notification, 2006. The EPA clearly bars the discharge of environmental pollutants in excess of specified regulatory standards.
2. Environment Impact Assessment (EIA) Notification, 2006
Under the EIA Notification 2006 law, various projects (such as mining, industrial expansion, infrastructure, and real estate) mandatorily obtain advance EC before starting any physical activity. The purpose is to evaluate and minimise potential environmental, social, and public health impacts in advance.
The EIA Notification 2006 framework classifies projects into
- Category ‘A’ Projects are large-scale projects with the potential for significant environmental impact. These are evaluated by the Ministry of Environment, Forest, and Climate Change (“MoEFCC”)
- Category ‘B’ Projects are generally smaller in scale or capacity than Category ‘A’ projects and are considered to have lesser environmental consequences. These are assessed by the respective State Environment Impact Assessment Authorities (“SEIAAs”).
3. Construction and Demolition Waste Management Rules, 2016
The Ministry of Environment, Forest and Climate Change introduced the Construction & Demolition Waste Management Rules, 2016, to address pollution and waste management challenges. These rules apply to all waste generated from the construction, renovation, repair, or demolition of civil structures by individuals, organisations, or authorities, including building materials, debris, and rubble.
Key Provisions:
- Safe Handling, Segregation, Storage, and Recycling: The rules mandate that waste generators (including commercial construction projects) must safely handle, segregate, store, and ensure recycling of C&D waste.
- Waste Management Plan Requirement: Project proponents generating more than 20 tons per day or 300 tons per project per month must submit a comprehensive waste management plan and obtain appropriate approvals from the local authority before starting construction, demolition, or remodelling work.
- Responsibility of Waste Generators: It is the responsibility of every waste generator to segregate C&D waste and deposit it at designated collection centers for processing.
- Role of Local Authorities: Local authorities must issue directions for proper management of C&D waste and ensure the procurement of recycled materials in municipal and government contracts.
- Link to Environmental Clearance (EC): Permission for construction is only granted when a complete C&D waste management plan is presented as part of the EC process.
4. Air (Prevention and Control of Pollution) Act, 1981
The Air (Prevention and Control of Pollution) Act 1981 is a major law designed by the Indian Parliament to reduce air pollution. This Act gives a legal system to prevent, control, and reduce the harmful emissions of pollutants into the atmosphere. This act is critical in protecting public health and preserving the environment.
Commercial construction projects need to obtain consent from the Central/State Pollution Control Boards to establish and operate.
The main objectives of the Air Act, 1981, are:
- Prevention and Control of Air Pollution: To stop and reduce the release of harmful gases and pollutants into the air.
- Improvement of Air Quality: To make sure the air remains clean and safe for people, plants, and animals.
- Setting Up Pollution Control Boards: To give power to Central and State Boards to make and enforce rules related to air pollution.
- Promotion and Public Awareness: To educate people on the causes and dangers of air pollution and encourage them to take part in reducing it.
5. Water (Prevention and Control of Pollution) Act, 1974
The Water (Prevention and Control of Pollution) Act 1974 was legislated to prevent and control water pollution and maintain or restore the wholesomeness of water during construction. All commercial construction projects, especially those with a built-up area exceeding 20,000 square meters, are directly regulated under this act. They are required to get ‘consent to establish’ and ‘consent to operate’ from the relevant Central/State Pollution Control Boards under section 25 of the Water Act before starting the construction of the project.
For commercial buildings, this includes the setting up of Sewage Treatment Plants (STPs) and the management of all wastewater generated onsite.
Which Commercial Projects Require Environmental Clearance?
As per the latest EIA Notification, commercial construction projects that meet the following criteria must obtain EC:
| Project Type | Threshold / Criteria | EIA Category | EC Requirement & Testification |
| Commercial Buildings | Built-up area ≥ 20,000 sq. m | 8(a) | Must get EC from SEIAA under the EIA Notification if above the threshold. |
| Townships/ SEZs | Area > 50 hectares or built-up ≥ 1,50,000 sq. m | 8(b) | Includes IT Parks; SEIAA clearance needed if limits are crossed. |
| CRZ/ Eco-sensitive Zones | Any size | Mandatory | All projects here need EC, regardless of size or type. |
| Malls/IT Parks | Built-up area > 1,50,000 sq. m | 8(b) | Treated as township/area development; mandatory EC applies. |
| Hospitals, Resorts, Hotels, Educational Buildings | Built-up area ≥ 20,000 sq. m (except certain educational buildings as per latest exemptions) | 8(a) | EC needed unless exempt (as in recent MoEFCC updates—certain schools/colleges/hostels excluded). |
Exemption: Building projects with a built-up area below 20,000 sq. m are classified as Category B2 and are exempt from EIA/EC, but must secure all local authority clearances before construction.
The Supreme Court of India (May 2025) and the official MoEFCC portal confirm that non-compliance with local regulations can still result in penalties or project stoppage, even if EC is not required.
Stages of the Environmental Clearance Process
- Screening
Here, you will learn whether your project requires a full Environmental Impact Assessment (EIA) and identify its category. This determination is essential for Category B projects.
- Category A projects: Always require an EIA report.
- Category B projects:
- B1: Require an EIA report.
- B2: Do not require an EIA report.
- Scoping
This step defines the scope of the EIA study through the issuance of the project’s Terms of Reference (ToR).
Authority:
- EAC (Expert Appraisal Committee) for category A projects at the central level.
- SEAC (State Expert Appraisal Committee) for Category B1 projects at the state level.
ToR must be issued within 60 days of the application. If not issued, the applicant’s suggested ToR is deemed final.
Here, the EAC or SEAC authority can reject the project and deny EC within 60 days of the application submission, with appropriate reasons for the rejection.
- Public Hearing/Consultation Process Based on the EIA Report
This process includes the following components and steps.
- Public Hearing: The relevant State Pollution Control Board (SPCB) is accountable for conducting a public hearing at the project site or in its environs within 45 days. This step is mandatory for Category A and high-impact projects. They must submit their Environmental Management Plan (EMP) and application for review.
(Exemptions: IT parks in notified SEZs and certain low-impact projects)
- Written Responses: In the public hearing process, written responses will also be gathered from stakeholders.
- EIA Report amendments: After the public hearing, the EIA Report can be amended to include feedback and address concerns presented by the public.
- Submission to the Respective Authority: The updated EIA Report will be submitted to the applicable EAC (Expert Appraisal Committee) and SEAC (State Expert Appraisal Committee) authorities for further evaluation.
- Appraisal
Expert committees review the EIA report and seek public input. They review all documentation, including the revised EIA Report and public hearing proceedings. This appraisal process has to be finalised within 60 days of submission of the final EIA report.
- Grant or Rejection of EC
Based on the review in the fourth stage, the competent authority will decide whether to approve or reject the Environmental Clearance (EC). This decision must be made within 105 days after receiving the final EIA Report or the complete application (if the EIA Report is not needed).
Today, the EC application process is smoother through the Parivesh portal, which lets project owners track their application status in real-time. However, since the assessment process is detailed and complex, there can still be unexpected delays in granting EC.
Timeline: 90–210 days from application to decision, but real-world timelines often extend to 6–9 months due to delays, especially at the public hearing and data collection stages
Documents Required for Environmental Clearance
Form 1/1A (MoEFCC application)
This is the official application form that initiates the EC process.
Form 1 is used for all project categories (including industrial, mining, infrastructure, and construction).
Form 1A is specifically for construction projects (like commercial buildings, townships, and malls) listed under Item 8 of the EIA Notification, 2006.
These forms provide essential information for authorities to decide if the project needs a full Environmental Impact Assessment (EIA) and what specific studies should be done. The information in these forms is used by expert committees to issue Terms of Reference (ToR) and to appraise the project for potential environmental risks and mitigation.
EIA Report
An Environmental Impact Assessment (EIA) Report is a comprehensive document that evaluates how a proposed project, such as a large commercial building, can affect the environment and local community. It is a critical requirement for obtaining Environmental Clearance (EC) for most major construction projects in India.
The EIA report must be prepared by NABET-accredited consultants. NABET (National Accreditation Board for Education and Training) ensures that only qualified and experienced professionals conduct these assessments, maintaining quality and reliability.
Environmental Management Plan (EMP)
An EMP is a document outlining the complete procedure of how a project will be managed to mitigate its adverse effects on the environment and ensure adherence to environmental regulations. It describes specific actions, monitoring procedures, and mitigation measures to be taken throughout the project’s lifecycle. This is essential to ensure sustainable development in the area surrounding the proposed project.
NOC from SPCB (State Pollution Control Board)
A No Objection Certificate is an official document issued by the State Pollution Control Board (SPCB) or the Pollution Control Committee in Union Territories. The NOC affirms that your commercial building project meets all required air and water pollution control norms and does not pose unacceptable environmental risks.
This document must be submitted by all large construction projects, manufacturing units, hotels, hospitals, and other businesses that generate dust, wastewater, or other pollutants.
There are two main types of NOC:
- Consent to Establish (CTE): Also called the Pollution NOC. Must be obtained before construction starts. It shows that your proposed pollution control measures (like dust suppression, sewage treatment, etc.) are adequate and have been approved by the SPCB.
- Consent to Operate (CTO): This is needed after construction is complete, before you start using the building or facility. Confirms that all pollution control systems are installed and working as promised.
Land Use Certificates
The ULC certifies that the land you want to use for your commercial project (like a mall, office, hotel, or hospital) is zoned for that purpose according to the city’s or town’s master plan. Every city or town has a master plan or development plan that divides land into zones: residential, commercial, industrial, agricultural, etc.
With this certificate, you are confirming that your project’s location adheres to local zoning laws and is legally allowed to be developed as a commercial property.
CSR Plan
A CSR (Corporate Social Responsibility) Plan is a formal document that outlines how a company will contribute to social, community, and environmental development as part of its business operations, especially for large-scale projects.
Under Section 135 of the Companies Act, 2013, any company that meets at least one of these criteria in the preceding financial year must comply with CSR rules:
- Net worth of ₹500 crore or more
- Turnover of ₹1,000 crore or more
- Net profit of ₹5 crore or more
They must allocate a minimum of 2% of their average net profit over the last three years to CSR.
PARIVESH Portal: Key Updates
PARIVESH is a single-window, web-based portal for online submission, monitoring, and tracking of proposals seeking Environmental, Forest, Wildlife, and Coastal Regulation Zone (CRZ) clearances at the central, state, and district levels.
The portal enhances transparency, efficiency, and accountability in the clearance process, reducing average approval times and streamlining workflows for commercial construction projects.
Key features include:
- role-based access
- real-time status tracking
- compliance monitoring
- analytical reports
- 24×7 accessibility
Recent updates have introduced GIS-based Decision Support Systems, advanced data analytics, and modules like Know Your Approval (KYA) and Common Application Form (CAF) to further simplify and standardise processes.
Over 50,000 clearances have been granted through PARIVESH, supporting faster project execution while maintaining environmental safeguards.
Penalties for Non-Compliance
Under the Environment (Protection) Act, 1986, failure to comply with environmental clearance (EC) requirements in commercial construction can lead to serious consequences:
- Project Suspension & Fines: Authorities can immediately stop the project and impose fines, based on the severity and duration of the violation.
- Criminal Liability (Section 15): Individuals responsible for the violation may face
- Imprisonment up to 5 years
- If the violation continues, an additional fine of up to ₹5,000 per day is imposed for every day the offence continues after conviction.
- If the failure continues beyond one year after conviction, imprisonment may extend to seven years.
- Blacklisting of Companies: Companies found guilty may be blacklisted, making them ineligible for future project approvals.
Exemptions & Fast-Track Options
Certain projects may be eligible for exemption or fast-track processing:
| Scenario | Relaxation/Exemption | Legal/Policy Reference & Clarification |
| Projects <20,000 sq. m | No EC required under EIA Notification, 2006. SPCB NOC/municipal clearances are still mandatory. | Projects below 20,000 sq. m built-up area are exempt from EC but must obtain local municipal approvals and, in most cases, Consent to Establish (NOC) from the State Pollution Control Board. |
| Brownfield Redevelopment | Fast-track EC if there is no expansion in the built-up area or capacity. | Redevelopment of existing buildings (brownfield) without expansion may be processed faster, as the environmental impact is considered lower. However, any increase in area/capacity triggers full EC requirements. |
| SEZ/Industrial Parks | Simplified/fast-track clearance under EIA 2024 amendments.Integrated appraisal for clusters. | SEZs and notified industrial parks benefit from streamlined EC, often with a single-window clearance and reduced documentation, as per recent MoEFCC policy reforms. |
| Linear Projects | Exemption for earth extraction (if <20,000 m³) with strict SOPs and oversight committee. | 2025 amendments specify that linear projects (roads, pipelines, railways) sourcing <20,000 m³ earth are exempt from prior EC but must follow strict SOPs and monitoring. Above this threshold, EC is required. |
| Educational/ Institutional Projects | Proposed exemption stayed by the Supreme Court; EC is still required if the threshold is exceeded. | The 2025 notification that exempted educational institutions and industrial sheds from Environmental Clearance (EC) has been stayed by the Supreme Court. Therefore, such projects must still comply with EC norms if they exceed 20,000 sq. m or other specified thresholds. |
| White Category Industries | Exempt from Consent to Establish (CTE) if EC is obtained; only Consent to Operate (CTO) needed. | White category (least polluting) industries are exempt from CTE if they have EC, per the 2024 amendments. SPCBs can still impose conditions via CTO. This reduces duplication and speeds up approvals. |
2024–25 Updates Related to Environmental Clearance
- Green Building Integration: Large commercial projects now need to link their EC with green building certifications like GRIHA or IGBC. This means new commercial buildings must follow sustainability standards such as saving energy, conserving water, and using eco-friendly materials. These conditions are now included in SEIAA clearance letters and are being applied in many states.
- Climate Risk Assessment: As per the 2024 EIA Amendment Rules, any project with a built-up area over 50,000 sq. m must include a mandatory climate risk assessment.
Project proponents are required to:
- Conduct studies on climate-related risks (e.g., flooding, heatwaves, extreme weather)
- Show how the project will withstand and reduce these risks.
This rule aims to make urban infrastructure more resilient to climate change.
- Digital Public Hearings: Karnataka and Tamil Nadu have started online public hearings so people can give feedback and join consultations remotely. This is part of the digital reforms that also make it mandatory to use the PARIVESH 2.0 portal for EC applications and compliance reporting.
In conclusion, Environmental Clearance (EC) is an important legal approval essential for any commercial construction in India. As urban development proceeds, primarily in IT parks, malls, and office complexes, EC will assist you in ensuring that this rapid growth does not disrupt the environment and aligns with sustainability objectives. The process is becoming more structured and transparent with varying regulations like climate risk assessments, green building certifications, and digital public hearings. Neglecting these EC requirements can lead to severe legal, financial, and reputational impacts. So, whether you are a developer or a stakeholder, understanding the EC process is essential to ensure your project is compliant, environmentally responsible, and future-ready.