Environmental Impact Assessment: Process and Categories
Complete notes on Environmental Impact Assessment for exams: the EIA Notification of 2006, Category A and B projects, the four stages and the appeal forum.
By GK24 Editorial Team· Published · 4 min read

Environmental Impact Assessment, or EIA, is the study of the likely effects of a proposed project on the environment, carried out before the project is allowed to begin. Its purpose is preventive: a dam, a mine, a highway or a cement plant changes the land, water, air and people around it, and the law requires those changes to be predicted, measured and either avoided or reduced before the first brick is laid. The questions examiners ask from this topic are about law and procedure rather than ecology, so the facts to fix are the parent Act, the year of the notification, the two categories of projects, the four stages of the clearance process, the authority at each stage, and the forum for appeal.
Where EIA came from
The United States was the first country to make environmental assessment a statutory requirement, through the National Environmental Policy Act of 1969. In India the practice began in 1978 and 1979, when river valley projects were first appraised for their environmental effects as an administrative measure. It became a legal requirement with the EIA Notification of 1994, issued under Section 3 of the Environment (Protection) Act, 1986. That notification was replaced by the EIA Notification of 2006, which is the law in force and which reorganised the whole process by splitting projects between the central and the state level.
The parent statute matters. The Environment (Protection) Act of 1986 was passed after the Bhopal gas tragedy of December 1984 as an umbrella law, giving the central government wide power to take all measures necessary to protect and improve the environment. It draws on Article 48A, which directs the state to protect the environment, and on Article 51A(g), which makes it a fundamental duty of every citizen to do so, and it carries forward the commitment India made at the Stockholm Conference of 1972.
Category A and Category B
| Point | Category A | Category B |
|---|---|---|
| Appraised by | Expert Appraisal Committee at the centre | State Expert Appraisal Committee |
| Clearance granted by | Ministry of Environment, Forest and Climate Change | State Environment Impact Assessment Authority |
| Screening | Not required; clearance is compulsory for every Category A project | Required, and it decides whether the project is B1 or B2 |
| EIA report | Always needed | Needed for B1 projects; B2 projects are exempt |
The division follows the size and the likely impact of the project. Projects in or near a protected area, a critically polluted area, an eco-sensitive zone or within ten kilometres of an interstate or international boundary are treated at the central level whatever their size.
The four stages of clearance
- Screening decides whether a Category B project needs a full assessment, which makes it a B1 project, or does not, which makes it B2.
- Scoping is the stage at which the Expert Appraisal Committee issues the Terms of Reference, that is the list of issues the assessment must cover.
- Public consultation has two parts: a public hearing at the site, conducted by the State Pollution Control Board or the pollution control committee of the union territory, and written responses invited from others with a stake in the project. Certain projects, such as B2 projects, expansion of irrigation and units inside a notified industrial estate, are exempt from the hearing.
- Appraisal is the detailed scrutiny of the EIA report and the record of the public hearing by the appraisal committee, which then recommends grant or refusal. The regulatory authority gives the final decision, and a project that is cleared receives a prior Environmental Clearance with conditions.
The documents at the heart of the process are the EIA report itself, which contains the baseline data on air, water, soil, noise, flora, fauna and the socio-economic setting, the prediction of impacts, and the Environment Management Plan, which sets out the mitigation measures and the monitoring the proponent must carry out.
Kinds of assessment and the methods used
- Rapid EIA uses baseline data of a single season, excluding the monsoon, and is used where a quick appraisal is enough.
- Comprehensive EIA uses data of all seasons over a full year.
- Strategic Environmental Assessment applies the same idea to a policy, plan or programme rather than a single project.
- Cumulative assessment looks at the combined effect of several projects in one area, such as a series of dams on one river.
- Common techniques are the checklist, the matrix method of which the Leopold matrix is the best known, network or cause-effect diagrams, and map overlays.
Appeals and criticism
An appeal against a grant or refusal of environmental clearance lies before the National Green Tribunal, created by the National Green Tribunal Act of 2010, whose principal bench sits at New Delhi. The tribunal is required to dispose of cases within six months as far as possible and is not bound by the Code of Civil Procedure, which makes it faster than an ordinary court. Coastal projects need a separate clearance under the Coastal Regulation Zone notification.
The criticisms of the Indian system are themselves asked in descriptive papers. The reports are prepared by consultants paid by the project proponent, which raises a question of independence; baseline data is sometimes thin or copied; public hearings have been diluted or skipped; and clearance granted after construction has already begun, called post-facto clearance, has been struck down by the courts as being against the preventive purpose of the law.
Exam Point of View
Objective papers ask five things from this topic. First, the year pairs: 1969 for the American law, 1986 for the parent Act, 1994 for the first Indian notification and 2006 for the one in force. Second, the matching of category to authority, where the trap is to put Category B before the central ministry. Third, the order of the four stages, with the favourite single question being which stage produces the Terms of Reference. Fourth, who conducts the public hearing, the answer being the State Pollution Control Board and not the appraisal committee. Fifth, the appellate forum, which is the National Green Tribunal. Descriptive papers ask for the shortcomings of the process, where post-facto clearance and the consultant's conflict of interest are the standard points.
Important Facts
| First country with statutory EIA | United States, National Environmental Policy Act, 1969 |
|---|---|
| Parent Act in India | Environment (Protection) Act, 1986, Section 3 |
| First Indian EIA notification | 1994 |
| Notification in force | EIA Notification, 2006 |
| Category A clearance by | Ministry of Environment, Forest and Climate Change, on the advice of the Expert Appraisal Committee |
| Category B clearance by | State Environment Impact Assessment Authority, on the advice of the State Expert Appraisal Committee |
| Four stages | Screening, scoping, public consultation, appraisal |
| Terms of Reference issued at | The scoping stage |
| Public hearing conducted by | State Pollution Control Board or union territory pollution control committee |
| Rapid EIA | Baseline data of one season, excluding the monsoon |
| Comprehensive EIA | Baseline data of all seasons of a full year |
| Appellate forum | National Green Tribunal, under the Act of 2010; principal bench at New Delhi |
| Best known matrix method | Leopold matrix |
| Constitutional basis | Article 48A as a directive principle and Article 51A(g) as a fundamental duty |
Practice MCQs on this topic
Which country was the first to make Environmental Impact Assessment a statutory requirement?
- A.United Kingdom
- B.United States of America
- C.Sweden
- D.India
Show answer
Explanation
The correct answer is B, the United States of America. The National Environmental Policy Act of 1969, which came into force in 1970, required every agency of the American federal government to prepare a statement of the environmental effects of any major action it proposed, and that requirement is taken as the beginning of environmental impact assessment as a legal duty anywhere in the world. Option A is wrong because the United Kingdom adopted assessment later, under the directives of the European Community. Option C is wrong because Sweden hosted the United Nations Conference on the Human Environment at Stockholm in 1972, which is a different landmark and a common point of confusion. Option D is wrong because India began appraising river valley projects administratively only in 1978 and made assessment a legal requirement by notification in 1994.
The Environmental Impact Assessment Notification in India is issued under which Act?
- A.Wild Life (Protection) Act, 1972
- B.Water (Prevention and Control of Pollution) Act, 1974
- C.Environment (Protection) Act, 1986
- D.Forest (Conservation) Act, 1980
Show answer
Explanation
The correct answer is C, the Environment (Protection) Act, 1986. Section 3 of that Act gives the central government power to take all measures it thinks necessary to protect and improve the quality of the environment, and the EIA Notifications of 1994 and 2006 were both issued under it. The Act was passed in the aftermath of the Bhopal gas tragedy of 1984 and is an umbrella law for environmental regulation. Option A is wrong because the Wild Life (Protection) Act of 1972 deals with protected areas, schedules of species and hunting. Option B is wrong because the Water Act of 1974 created the pollution control boards and deals with effluent standards and consent to operate. Option D is wrong because the Forest (Conservation) Act of 1980 governs the diversion of forest land, for which a separate forest clearance is needed.
The Environmental Impact Assessment Notification currently in force in India was issued in which year?
- A.1986
- B.1994
- C.2006
- D.2010
Show answer
Explanation
The correct answer is C, 2006. The EIA Notification of 2006 replaced the earlier notification of 1994 and reorganised the whole clearance process, chiefly by dividing projects into Category A, appraised and cleared at the central level, and Category B, appraised and cleared at the state level, and by laying down the four stages of screening, scoping, public consultation and appraisal. Option A is wrong because 1986 is the year of the parent Act, the Environment (Protection) Act, not of any notification. Option B is wrong because the notification of 1994, which first made assessment compulsory in India, has been superseded. Option D is wrong because 2010 is the year of the National Green Tribunal Act, which created the forum for appeals against clearance decisions, a related but separate law.
Environmental clearance for a Category A project is granted by which authority?
- A.State Environment Impact Assessment Authority
- B.Ministry of Environment, Forest and Climate Change
- C.Central Pollution Control Board
- D.National Green Tribunal
Show answer
Explanation
The correct answer is B, the Ministry of Environment, Forest and Climate Change. Under the notification of 2006, a Category A project is appraised by the Expert Appraisal Committee constituted at the centre, and the ministry grants or refuses the prior environmental clearance on that committee's recommendation. Option A is wrong because the State Environment Impact Assessment Authority clears Category B projects, on the recommendation of the State Expert Appraisal Committee; swapping the two categories is the commonest error in this question. Option C is wrong because the Central Pollution Control Board sets standards and monitors pollution but grants no environmental clearance. Option D is wrong because the National Green Tribunal is an appellate and adjudicating body: it hears challenges to a clearance that has been granted or refused, and does not grant clearance itself.
Which of the following is the correct order of the stages of the environmental clearance process?
- A.Scoping, screening, appraisal, public consultation
- B.Screening, scoping, public consultation, appraisal
- C.Public consultation, screening, scoping, appraisal
- D.Screening, public consultation, scoping, appraisal
Show answer
Explanation
The correct answer is B, screening, scoping, public consultation, appraisal. Screening comes first and decides whether a Category B project needs a full assessment, making it B1, or does not, making it B2. Scoping follows, at which the appraisal committee issues the Terms of Reference. Public consultation comes third, with a public hearing at the site and written responses. Appraisal is last, when the committee scrutinises the report and the hearing record and recommends a decision. Option A is wrong because scoping cannot precede screening, since screening decides whether an assessment is needed at all. Option C is wrong because a public hearing is impossible before the report exists. Option D is wrong because consultation must follow scoping, as the hearing is held on the draft report prepared against the Terms of Reference.
At which stage of the EIA process are the Terms of Reference issued?
- A.Screening
- B.Scoping
- C.Public consultation
- D.Appraisal
Show answer
Explanation
The correct answer is B, scoping. Scoping is the stage at which the Expert Appraisal Committee, or the state committee for a Category B1 project, determines the Terms of Reference: the detailed list of issues, study area, seasons of data and specific concerns that the assessment must address. The consultant then prepares the EIA report against that list, which is why an incomplete Terms of Reference weakens everything that follows. Option A is wrong because screening only sorts Category B projects into B1 and B2 and issues no terms. Option C is wrong because public consultation is held on the draft report that has already been prepared under the Terms of Reference. Option D is wrong because appraisal is the final scrutiny of that report, after which the committee recommends grant or refusal of clearance.
Who conducts the public hearing during the public consultation stage of the EIA process?
- A.Expert Appraisal Committee
- B.State Pollution Control Board
- C.District collector alone
- D.Ministry of Environment, Forest and Climate Change
Show answer
Explanation
The correct answer is B, the State Pollution Control Board. The notification of 2006 makes the State Pollution Control Board, or the pollution control committee in a union territory, responsible for conducting the public hearing at or near the site of the project, for recording the proceedings and for sending that record to the appraisal committee. Option A is wrong because the Expert Appraisal Committee issues the Terms of Reference and later appraises the report, but does not hold the hearing. Option C is wrong because although the district administration assists and a senior district officer presides over the proceedings, the responsibility for conducting the hearing rests with the board. Option D is wrong because the ministry takes the final decision on a Category A project and does not conduct hearings at project sites.
Which category of projects under the EIA Notification of 2006 does NOT require screening?
- A.Category A
- B.Category B1
- C.Category B2
- D.All categories require screening
Show answer
Explanation
The correct answer is A, Category A. For a Category A project, prior environmental clearance from the central government is compulsory by the very fact of its listing in the schedule, so there is nothing for a screening stage to decide and the process begins at scoping. Options B and C are wrong because screening is precisely the stage that sorts Category B projects into B1, which must prepare a full EIA report, and B2, which need not; a B1 or B2 label is the outcome of screening and cannot exist without it. Option D is wrong because it contradicts the structure of the notification, which expressly exempts Category A projects from screening. Remembering that screening belongs only to Category B is enough to answer several variants of this question.
An appeal against the grant of environmental clearance lies before which forum?
- A.Central Pollution Control Board
- B.National Green Tribunal
- C.National Biodiversity Authority
- D.Central Zoo Authority
Show answer
Explanation
The correct answer is B, the National Green Tribunal. The tribunal was created by the National Green Tribunal Act of 2010, its principal bench sits at New Delhi, and it hears appeals against the grant or refusal of environmental clearance as well as disputes under other environmental laws. It is not bound by the Code of Civil Procedure and is expected to decide matters within six months as far as possible. Option A is wrong because the Central Pollution Control Board is a technical and regulatory body that lays down standards and monitors pollution; it hears no appeals of this kind. Option C is wrong because the National Biodiversity Authority, set up under the Biological Diversity Act of 2002, deals with access to biological resources and benefit sharing. Option D is wrong because the Central Zoo Authority only recognises and regulates zoos.
In the practice of Environmental Impact Assessment, a Rapid EIA differs from a Comprehensive EIA mainly because it
- A.uses baseline data of one season, excluding the monsoon
- B.does not need an Environment Management Plan
- C.is prepared by the government instead of a consultant
- D.applies only to projects inside protected areas
Show answer
Explanation
The correct answer is A. A rapid assessment is based on baseline data collected over a single season other than the monsoon, which allows the study to be completed quickly, while a comprehensive assessment collects data over all the seasons of a full year and therefore captures seasonal variation in air quality, water flow and biological activity. Option B is wrong because the Environment Management Plan, which lists the mitigation and monitoring measures, is an essential part of every assessment report, rapid or comprehensive. Option C is wrong because in both cases the report is prepared by an accredited consultant engaged by the project proponent, which is in fact one of the standing criticisms of the system. Option D is wrong because projects inside or near protected areas are dealt with at the central level and ordinarily need the fuller study, not the rapid one.
The Leopold matrix is a technique used in Environmental Impact Assessment for
- A.measuring the concentration of pollutants in water
- B.identifying and rating the interaction between project activities and environmental factors
- C.estimating the cost of mitigation measures
- D.mapping the boundaries of eco-sensitive zones
Show answer
Explanation
The correct answer is B. The Leopold matrix is the best known of the matrix methods: the activities of a project are set along one axis and the components of the environment along the other, and each cell where an activity meets a component is marked for the magnitude and the importance of the impact. It gives a quick visual picture of which activities matter most and which environmental components are most at risk. Option A is wrong because the concentration of pollutants is measured by laboratory analysis and instruments, and forms part of the baseline data that the matrix then uses. Option C is wrong because costing belongs to the Environment Management Plan and to project economics, not to the matrix. Option D is wrong because eco-sensitive zone boundaries are notified by the government, and mapping them is a task for overlay and geographic information techniques.
Frequently Asked Questions
What is Environmental Impact Assessment in simple words?
It is a study made before a project is allowed to start, to find out how it will affect the air, water, soil, forests, wildlife and people around it. The study predicts the damage, suggests ways to avoid or reduce it and lays down a management plan, and the government uses it to decide whether to clear the project and on what conditions.
Under which Act is the EIA Notification issued?
Under Section 3 of the Environment (Protection) Act, 1986, which empowers the central government to take all measures necessary to protect and improve the environment. The first notification under it came in 1994 and was replaced by the EIA Notification of 2006, which is in force today.
What is the difference between Category A and Category B projects?
Category A projects are larger or more sensitive and are appraised by the Expert Appraisal Committee at the centre and cleared by the Ministry of Environment, Forest and Climate Change; clearance is compulsory and no screening is needed. Category B projects are appraised by the State Expert Appraisal Committee and cleared by the State Environment Impact Assessment Authority, after screening divides them into B1, which needs a full EIA, and B2, which does not.
At which stage are the Terms of Reference issued?
At the scoping stage. After an application is made, the Expert Appraisal Committee or its state counterpart determines the Terms of Reference, that is the detailed list of issues, areas and data the assessment must cover. The consultant then prepares the EIA report against that list.
Who conducts the public hearing in the EIA process?
The State Pollution Control Board, or the pollution control committee in a union territory, conducts the public hearing at or near the project site, and the proceedings are recorded and sent to the appraisal committee. Written responses from other interested persons form the second part of the public consultation stage.
Where can one appeal against the grant of environmental clearance?
Before the National Green Tribunal, set up under the National Green Tribunal Act of 2010, whose principal bench is at New Delhi. The tribunal hears disputes relating to environmental laws, is not bound by the Code of Civil Procedure and is expected to decide cases within six months as far as possible.
Sources
- The Environment (Protection) Act, 1986 — India Code, Government of India
- Environment Impact Assessment Notification, 2006 — Ministry of Environment, Forest and Climate Change
- The National Green Tribunal Act, 2010 — India Code, Government of India





