Environment Ministry's Notification Upholded by SC; Exemption Clause for Large-Scale Projects Struck Down
Following the Supreme Court's recent rulings in August 2025, large building and construction projects in India with built-up areas over 20,000 square meters must obtain environmental clearance under the Environmental Impact Assessment (EIA) 2006 rules. The Court struck down a clause that exempted such projects from prior environmental clearance.
The Scope of Exemptions
The January 30 follow-up office memorandum expanded the scope of exemptions to include private universities, warehouses, and industrial sheds housing machinery or raw material. However, these exemptions apply only to industrial sheds, schools, colleges, and hostels with built-up areas up to 150,000 square meters. The Court allowed these projects to proceed with environmental clearance granted at the state level, exempting them from the central clearance process.
The Court's Ruling
The court's ruling applies nationwide, explicitly including the state of Kerala. The Supreme Court upheld the MoEFCC's January 29, 2025 notification on environmental clearance requirements but invalidated clause 8 granting broad exemptions for large projects.
The Focus on Sustainable Development
The court has consistently focused on sustainable development. The petition claimed that bypassing EC for projects of such magnitude would cause irreversible damage to land, water, and air quality, violating the precautionary principle in Indian environmental law. The court has ensured that development is permitted while taking precautions to minimize environmental damage.
The Holding of Natural Resources
The court clarified that natural resources are to be held in trust for the next generation, but it has not specified any new principles regarding this matter.
Costs for Certain Development Activities
The court has ordered costs to be paid for certain development activities, but it has not elaborated on the details of these costs.
In summary, the environmental clearance requirement for large projects remains stringent and aligns with the EIA 2006 regime. The division of authority between central and state environmental clearance bodies has been clarified to balance environmental protection with development needs. The clearance process continues to involve detailed assessment phases including public consultation and expert appraisal to ensure compliance and safeguard ecological interests. The court has ensured that development is permitted while taking precautions to minimize environmental damage.
- The Supreme Court's ruling in August 2025 insists that large building and construction projects in India, irrespective of the state, must acquire environmental clearance.
- Private universities, warehouses, and industrial sheds are exempted from obtaining central environmental clearance, provided their built-up areas are under 150,000 square meters.
- The Supreme Court has emphasized the importance of sustainable development, asserting that large projects bypassing Ecological Clearance can cause significant damage to the environment.
- In a recent decision, the court clarified that natural resources should be preserved for future generations, though it has yet to establish any new principles concerning this matter.
- The court has taken the initiative to levy costs for certain development activities, though the specific details about these costs remain undisclosed.
- Beyond construction, the environmental clearance process in India is extensive, encompassing public consultations, expert appraisals, and adherence to the EIA 2006 regulations, all aimed at achieving compliance and safeguarding the environment while fostering development.
