REGULATORY UPDATE - No.

185: 2021 ©
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ENVIRONMENT HEALTH & SAFETY SOCIAL INFRASTRUCTURE CLIMATE CHANGE SUSTAINABILITY

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AMENDMENT IN EIA NOTIFICATION 2006

Background: On 14th September 2006, the erstwhile Ministry of Environment and Forests, in
exercise of powers conferred to it by Environment Protection Act (EPA) 1986 and in supersession of
the Environment Impact Assessment (EIA) Notification dated 27th January 1994, notified the EIA
Notification 2006 (hereinafter referred to as the Said Notification). The Said Notification imposes
certain restrictions and prohibitions on new Projects or Activities, or on the expansion and
modernization of existing Projects or Activities, based on their potential environmental impacts as
indicated in the Schedule to the Notification, being undertaken in any part of India, unless Prior
Environmental Clearance (EC) has been obtained from the Central Government or by the
State/Union Territory Level EIA Authority, duly constituted by the Central Government, in
accordance with the procedures specified in this Notification. The Said Notification has been amended
from time to time and was last amended through Notification# S.O. 1247(E) dated the 18th March
20211.

Further, for the purpose of Ethanol Blended Petrol (EBP) Programme, a Special Dispensation was
provided for expansion of Sugar Manufacturing or Distillery Units, intended for production of
Ethanol, through the Ministry of Environment, Forest and Climate Change’s (MoEF&CC’s)
Notifications# S.O. 345(E) dated 17th January 20192 and S.O. 750(E) dated 17th February 20203.

However, in view of the Government’s commitment to achieve 20% blending of Ethanol in Petrol by
the year 2025, it was decided to continue with this dispensation and thereby the MoEF&CC
informed regarding the same, through its Notification# S.O. 980 (E) dated 2nd March 20214.

In line of the above, the Ministry has noticed that the expansion Projects of Sugar Manufacturing
Units or Distilleries are generally unable to comply with the requirement of obtaining Certificate
from the Competent Authority relating to Certification that the Distillery is producing/shall produce
Ethanol for blending with fuel in a timely manner thereby stalling the entire process.

Later, the above matter has been considered and it has been decided that the requirement of
Certification by Competent Authority may be replaced with Self-Certification in form of a notorized
Affidavit, subject to condition that subsequently if it is found that the Ethanol, produced based on the
EC granted as per this dispensation, is not being used completely for EBP Programme, the EC shall
stand cancelled.

1 Please refer to EnvirotrendsRegulatory Update#97 of 2021 - “Amendment in EIA Notification 2006” or follow the link:
http://egazette.nic.in/WriteReadData/2021/225979.pdf.
2 Please refer to EnvirotrendsRegulatory Update#8 of 2019 - “MOEF&CC’s Notification regarding Standardization of Environmental

Clearance Conditions related to Distilleries” or follow the link: http://egazette.nic.in/WriteReadData/2019/195705.pdf.

3 Please refer to EnvirotrendsRegulatory Update#34 of 2020 - “Amendment in EIA Notification”.

4 Please refer to EnvirotrendsRegulatory Update#69 of 2021 - “Amendment in EIA Notification” or follow the link:

http://egazette.nic.in/WriteReadData/2021/225597.pdf.
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Additionally, in order to give a further boost to the EBP Programme, Grain based Distilleries, having
Zero Liquid Discharge (ZLD) and setup to produce only Ethanol for the purposes of EBP Program of
the Government, and keeping in view overall environmental, social and economic benefits in
production of Ethanol from such Distilleries including reduction in Green House Gas emissions in
comparison to conventional fossil-fuel, less water and air pollution, potential boost to agricultural
economy and reduced dependence on imported fossil fuel by equivalent amount, the Central
Government considered it necessary to give a special dispensation as regards granting of EC to such
Category of Projects [Manufacturing of Ethanol by Grain Based Distilleries with ZLD, to be used for
EBP Programme of the Government], subject to certain conditions.

Now, therefore, in view of the above and in exercise of the powers conferred by Sub-section (1)
and Clause (v) of Sub-section (2) of Section 3 of the EPA 1986, the MoEF&CC, Government of India
(GoI), through its Notification# S.O. 2339(E) dated 16th June 2021, hereby makes the following
amendments in the Said Notification, namely:

Note: The insertions in the Said Notification are highlighted in grey background and whatever is
substituted has been stricken through.

In the Said Notification,

i. After Sub-Paragraph (iii) of Paragraph 4 (relating to “Categorization of Projects and Activities”);

(iii a) Such Category ‘B’ Projects, as notified by the Central Government on account of
exigencies such as pandemics, natural disasters, or to promote environmentally friendly
activities under National Programmes or Schemes or Missions, shall be considered at the
Central level as Category ‘B’ Projects;

ii. Against Item 5(g) (relating to “Distilleries”), for the entries in Column (5), in the Schedule;

Project/Activity Category with Threshold limit Conditions,

if any
(A) (B)
5 Manufacturing/Fabrication
5 (g) Molasses based Molasses based Distilleries ≤ General
Distilleries Distilleries >100 100KLD Non-Molasses based conditions
KLD Non- Distilleries ≤ 200KLD shall apply
Molasses based
Distileries Expansion of Sugar
>200KLD Except Manufacturing Units or
for the Projects Distilleries for production of
falling in Item Ethanol, having Prior EC for
5(ga) of this existing Unit, to be used
Schedule. completely for EBP Programme
only, as per Self-Certification in
form of an Affidavit by the
Project Proponent (PP), shall be
appraised as Category ‘B2’
Projects.

Provided that subsequently if it

is found that the ethanol,
produced based on the EC

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granted as per this dispensation,
is not being used completely for
EBP Programme, or if Ethanol is
not being produced, or if the
said Distillery is not fulfilling
the requirements based on
which the Project has been
appraised as Category B2
Project, the EC shall stand
cancelled;

iii. In the Schedule, after Item 5(g);

Project/Activity Category with Conditions, if any

Threshold limit
(A) (B)
5 Manufacturing/Fabrication

5(ga) Grain based Projects Projects Note: (i) Projects under Category
Distilleries Distilleries without with B shall be appraised as B2
producing ZLD ZLD Category Project and in terms of
Ethanol, solely Paragraph 4(iiia) of this
to be used for Notification (ii) Applicable for
EBP Programme Projects who file Application for
of the GoI. grant of EC upto 31st March 2024
or till further Notification
Note: Grains whichever is earlier provided
including that any subsequent amendment
Wheat, Rice, or expansion or change in
Maize, Barley, product mix after 31st March
Sorghum. 2024, shall be considered as per
the provisions in force at that
time.
(iii) The PP shall file a Notorized
Affidavit that Ethanol produced
from proposed Project shall be
used completely for EBP
Programme. Provided that
subsequently if it is found that
the Ethanol produced, based on
the EC granted as per this
dispensation, is not being used
completely for EBP Programme,
or if Ethanol is not being
produced, or if the said Distillery
is not fulfilling the requirements
based on which the Project has
been appraised as Category B2
Project, the EC shall stand
cancelled”

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If you are interested to know more about specific details provided in the Original Notification,
please refer to the following link for your kind information:
https://egazette.nic.in/WriteReadData/2021/227646.pdf

If you have any queries or need any clarifications or more information on the above,
Please contact our EHS Helpline on +91-11-2627 1433
OR +91-11- 4052 5413 OR Please send query to envirotrends@indusenviro.com

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