NITI Aayog proposes faster green nods for chemical sector
The average clearance now takes 451 days — 196 days longer than the prescribed 255-day timeline — with 90% of projects facing delays, according to a report launched in Delhi by NITI CEO BVR Subrahmanyam and vice chairman Suman Bery.
'These delays significantly inflate project costs and disrupt industrial development,' the report stated, noting India's approval process takes substantially longer than the United States' one year or the European Union's 12-18 months for major projects.
The report, titled 'Chemical Industry: Powering India's participation in Global Value Chains,' identifies prolonged public consultations, documentation inconsistencies and insufficient regulatory resources as primary causes of delays.
NITI Aayog proposes establishing a dedicated oversight committee under the ministry of commerce and industries by 2026, aiming to ensure fewer than 10% of projects face delays. The committee would work alongside the Environment Ministry to identify bottlenecks and publish quarterly progress reports.
Key reforms include granting the expert appraisal committee autonomy to make final decisions, eliminating validation requirements by the Environmental Impact Assessment Authority (EIAA) — a change that could save 45 days. Alternatively, companies could proceed with provisional 'deemed' environmental clearances.
The current approval process requires multiple stages: application submission, screening and classification, public consultation, environmental impact assessment scrutiny, expert appraisal and final authority decision. Delays are most acute during screening, expert appraisal and the final decision stage.
The report suggests allowing companies to begin certain construction activities at their own risk whilst awaiting final approval, specifically civil construction for capital expansion or product mix changes not requiring public hearings.
Additional proposals include allowing chemical parks to grant pre-environment clearances to industries and exempting fresh clearances when product mix changes don't increase pollution loads.
'Easing the EC process could enhance the supportive regulatory environment without compromising the environment,' the report concludes, citing potential improvements to India's ease of doing business ranking.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
39 minutes ago
- Time of India
10-12 Countries to Get Tariff Letters: Trump
Live Events Vietnam Deal Weekend Talks US President Donald Trump said his administration will probably start notifying trading partners Friday of the new US tariff on their exports effective Aug. 1, while reiterating a preference for simplicity over complicated negotiations five days before his deadline for told reporters that about '10 or 12' letters would go out Friday, with additional letters coming 'over the next few days.''By the ninth they'll be fully covered,' Trump added, referring to a July 9 deadline he initially set for countries to reach deals with the US to avoid higher import duties he has threatened. 'They'll range in value from maybe 60 or 70% tariffs to 10 and 20% tariffs,' he talks with economies from Indonesia and South Korea to the European Union and Switzerland are reaching critical stages, where the most contentious issues are hammered out. Trump's latest threat, which fits his pattern of issuing ultimatums to break any impasses, aligns with earlier statements that some nations won't have a say in their tariff top tier of his new tariff range, if formalized, would be higher than any of the levies the president initially outlined during his 'Liberation Day' rollout in early April. Those varied from a 10% baseline tariff on most economies to a maximum of 50%. Trump didn't elaborate on which countries would get the tariffs or whether that meant certain goods would be taxed at a higher rate than said that countries would 'start to pay on Aug. 1. The money will start going to come into the United States on August 1.' Tariffs are typically paid by the importer, or an intermediary acting on the importer's behalf. But often it's profit margins or the end consumer that ultimately absorb much of the in Asia and Europe dropped along with the dollar. US equity and Treasury markets closed for the Fourth of July lagged effect of tariffs on inflation has some Federal Reserve officials wary of cutting interest rates. The Fed has held off on lowering rates this year — despite intense pressure from Trump — in part to determine whether tariff-driven price hikes might evolve into more persistent cost-of-living has long threatened that if countries fail to reach deals with the US before next week's deadline, he would simply impose rates on them, raising the stakes for trading partners that have rushed to secure agreements with his initially announced his higher so-called 'reciprocal' tariffs on April 2, but paused those for 90 days to allow countries time to negotiate, putting in place a 10% rate during that Economics estimates that if all reciprocal tariffs are raised to their threatened level on July 9, average duties on all US imports could climb to around 20% from close to 3% before Trump's inauguration in January. That would add to growth and inflation risks for the US far, the Trump administration has announced deals with the UK and Vietnam and agreed to truces with China that saw the world's two largest economies ease tit-for-tat tariffs and lower export controls Asked Thursday if more deals were on the way, Trump responded that 'we have a couple of other deals, but you know, my inclination is to send a letter out and say what tariffs they are going to be paying.''It's much easier,' he said. 'I'd rather just do a simple deal where you can maintain it and control it.'Trump announced the Vietnam deal on Wednesday, saying that the US would place a 20% tariff on Vietnamese exports to the US and a 40% rate on goods deemed transshipped through the nation — a reference to the practice whereby components from China and possibly other nations are routed through third countries on their way to the the rates are lower than the 46% duty Trump imposed on Vietnam initially, they are higher than the universal 10% level. And many of the particulars of the deal are still unclear, with the White House yet to release a term sheet or publish any proclamation codifying the Trump's announcement, Vietnam said the negotiations were still ongoing Indonesia is confident it is close to securing a 'bold' trade deal with the US that will span critical minerals, energy, defense cooperation and market access ahead of the looming tariff deadline, according to the nation's chief negotiator on government said in a statement Friday that it agreed with the US on a framework agreement on reciprocal trade that will be released publicly soon, with a pledge to continue cooperating closely. At 49%, Cambodia's threatened reciprocal tariff was among Trump's highest Many major trading partners such as Japan, South Korea and the European Union are still working to finish their EU carmakers and capitals are pushing for an agreement with the US that would allow for tariff relief in return for increasing investments in the US, according to people familiar with the Korea's top trade official will visit the US this weekend with fresh proposals in a last-minute bid for a reprieve before higher tariffs are scheduled to kick US president has expressed optimism about reaching an agreement with India but has spoken harshly about the prospects of an accord with Japan, casting Tokyo as a difficult negotiating partner. He intensified his criticism this week, saying that Japan should be forced to 'pay 30%, 35% or whatever the number is that we determine.'Trump on Tuesday also said he was not considering delaying next week's deadline. Asked about any potential extension of talks, US Treasury Secretary Scott Bessent said earlier Thursday that Trump would make the final call.'We're going to do what the president wants, and he'll be the one to determine whether they're negotiating in good faith,' Bessent said on CNBC when asked whether the deadline might be lengthened.
Economic Times
an hour ago
- Economic Times
‘No trade deal under pressure of deadline': Piyush Goyal
Reuters India's trade minister Piyush Goyal Days ahead of the US' July 9 deadline for reciprocal tariffs, commerce and industry minister Piyush Goyal on Friday said India does not enter into trade agreements based on deadlines but on mutual benefits and national interest. 'FTAs (free trade agreements) are possible only when both sides get benefits. It should be a win-win agreement. India never negotiates trade deals based on deadlines. Our focus is always on fairness and the country's benefit,' Goyal told media persons on the sidelines of an event, a day after Indian trade negotiators returned from an eight-day visit to the US to close a trade pact before July 9. The minister ruled out him visiting the US in the near term. The Indian negotiating team returned from Washington after hectic parleys with their US counterparts. 'India Always Ready to Do Deals' 'India's national interest should always be supreme… keeping that in mind, if a good deal happens then India is always ready to do deals with developed countries,' Goyal said. 'Jab deal achchhi ban jaaye, puri tarah se pakk jaaye tab usko sweekar karenge (When a good deal is done and ready, then we will accept it),' he emphasised. Asked whether he was hopeful of a trade deal with the US, Goyal said, 'I have told you many times that India negotiates FTAs on its own terms'. He added that trade discussions are on with the European Union and different countries—New Zealand, Oman, US, Chile and Peru. US President Donald Trump on Thursday said that his administration would send letters to individual countries which don't have a deal with the US, specifying the tariffs they would now have to pay to export to America. In April, Trump had announced reciprocal tariffs for most of the trading partners based on their trade surpluses with the US, including a 26% levy on India. The Indian government wants the entire 26% levy to be rolled back and is negotiating with the Trump administration. However, the US' demand for market access across sectors, including sensitive agriculture and dairy products, and insistence on genetically modified crops, have been some sticky areas. On the issue of the two sides inking multiple deals on issues as and when they get agreed, an official said that all possibilities are on the table.
Time of India
an hour ago
- Time of India
‘No trade deal under pressure of deadline': Piyush Goyal
Days ahead of the US' July 9 deadline for reciprocal tariffs, commerce and industry minister Piyush Goyal on Friday said India does not enter into trade agreements based on deadlines but on mutual benefits and national interest. 'FTAs ( free trade agreements ) are possible only when both sides get benefits. It should be a win-win agreement. India never negotiates trade deals based on deadlines. Our focus is always on fairness and the country's benefit,' Goyal told media persons on the sidelines of an event, a day after Indian trade negotiators returned from an eight-day visit to the US to close a trade pact before July 9. The minister ruled out him visiting the US in the near term. The Indian negotiating team returned from Washington after hectic parleys with their US counterparts. 'India Always Ready to Do Deals' 'India's national interest should always be supreme… keeping that in mind, if a good deal happens then India is always ready to do deals with developed countries,' Goyal said. 'Jab deal achchhi ban jaaye, puri tarah se pakk jaaye tab usko sweekar karenge (When a good deal is done and ready, then we will accept it),' he emphasised. Asked whether he was hopeful of a trade deal with the US, Goyal said, 'I have told you many times that India negotiates FTAs on its own terms'. He added that trade discussions are on with the European Union and different countries—New Zealand, Oman, US, Chile and Peru. US President Donald Trump on Thursday said that his administration would send letters to individual countries which don't have a deal with the US, specifying the tariffs they would now have to pay to export to America. In April, Trump had announced reciprocal tariffs for most of the trading partners based on their trade surpluses with the US, including a 26% levy on India. The Indian government wants the entire 26% levy to be rolled back and is negotiating with the Trump administration. However, the US' demand for market access across sectors, including sensitive agriculture and dairy products, and insistence on genetically modified crops, have been some sticky areas. On the issue of the two sides inking multiple deals on issues as and when they get agreed, an official said that all possibilities are on the table.
