The MoEF is likely to take up a proposal to undertake Environment Impact Assessment (EIA) on its own for projects coming up in eco-sensitive areas as well as those having multiple units. The ministry is planning to carry out EIAs on its own instead of merely going by the assessment carried out by the project promoters. The decision on the proposal is likely to come by December 2011.

Meanwhile, the ministry will be prohibiting new projects, especially in the ports sector, that are proposed in the higherosion zones along the Indian coastline. It has undertaken a satellite imagery assessment of India's coastline, which will now be divided into three zones - high, medium and low erosion zones. It has completed satellite imagery assessment for the coasts of Gujarat, Orissa and Puducherry and will have the imagery of the entire coastline, covering all coastal States, by August 2011. In a related development, the ministry's decision to reject projects without firm coal linkages is expected to hit the power capacity addition target under the 12th Plan. The ministry has conveyed the said decision through a circular that said all proposals for power, steel and sponge iron, among others, requiring coal as a raw material, will be considered only after firm coal linkage was available and the status of environment and forest clearances for the coal source was known.

The Union Ministry has cautioned against the possible effects of MoEF's latest decision. It opines that the said circular needs to be amended and environmental clearances be accorded to all projects in 2011 for the 12th Plan projects that have been granted coal linkages without insisting on the source of coal. If green clearances are not granted for the 12th Plan projects, the country may miss the capacity addition target for the next plan period. If the project has come up in 12th plan, then the construction should start by the end of 2011 or early 2012. Construction work on projects can begin only after environment clearance is given.

However, the power capacity addition target for the 12th Plan period (2012-17) has not been finalised, and the working group for the 12th Plan has not yet met. The target for the 11th Plan has been scaled down from 78,000 MW to 62,000 MW and the actual achievement is likely to be only 55,000 MW.

Mayawati, the Chief Minster of Uttar Pradesh, on 2 June 2011, announced a new land acquisition policy. The new policy stresses on the fact that approval of any development project in the private sector will depend upon the consent of at least 70 per cent of the affected farmers. Besides, the private developers will directly deal with farmers for compensation, while the state would only play the role of a facilitator and notify both the parties about the acquisition of the designated land. The government has clarified that the new policy has been implemented with prospective effect and does not cover earlier projects for which land acquisition had already taken place.

The Uttarakhand Government has decided to formulate a new township policy. Under the new policy, the state government will prepare broader contours of the urban development planning owing to the substantial increase of population pressure on cities like Dehradun. The new policy will also take a new look at the highly controversial land acquisition process in the light of recent amendments carried out by the neighbouring Uttar Pradesh Government.

Most Awaited Policy

New Manufacturing policy on the Anvil

The Union Government on 9 June 2011 gave an in-principle approval to the draft National Manufacturing Policy (NMP) which aims to enhance the growth of the industrial sector.

However, the approval is subject to more Inter-Ministerial consultations for resolving sensitive issues relating to labour and environment protection. The consultation process is expected to be completed within one month, so that the NMP could be brought before the Cabinet and the final Policy announced. Though policy measures will reduce the compliance burden on industry, measures have to be formulated while adequately taking care of the environmental and labour welfare concerns.

The draft NMP aims to raise the sectoral share of manufacturing in GDP from the present 16 per cent to at least 25 per cent by 2025 and also increase the rate of job creation in manufacturing to create 100 million additional jobs by 2025. The creation of National Investment and Manufacturing Zones, as mega investment regions equipped with world-class infrastructure, has been proposed as a major policy instrument. Also, it lays emphasis on creating a Manufacturing Industry Promotion Board, to ensure coordination between Union and state government. Besides, it encourages access by Indian companies to foreign know-how and develop indigenous technology through fiscal incentives and subsidies.