Procedure for Transfer of Environmental Clearance (EC)

Anamika Rathore

Anamika Rathore

Published on: Mar 26, 2026

Shatakshi Sharma

Updated on: Mar 26, 2026

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Introduction

Environmental Clearance (EC) may be transferred to another legal entity during its validity period in cases such as transfer of ownership, acquisition, demerger, restructuring, or change in the company’s name.

The transferee entity must be legally competent and qualified to undertake the project or activity for which the EC was originally granted.

Such transfer requires prior approval from the competent regulatory authority, namely the Ministry of Environment, Forest and Climate Change (MoEF&CC) for centrally appraised projects or the State Environment Impact Assessment Authority (SEIAA) for state-level projects.

The transfer can only take place when:

• The existing EC holder (transferor) provides written consent or No Objection Certificate (NOC), unless the transferee establishes legal acquisition through documentary evidence.
• The transferred EC continues under the same terms, conditions, and validity period as originally granted.

Applicability Provisions

• Para 11 of the Environmental Impact Assessment Notification, 2006
• Section 3 of the Environment (Protection) Act, 1986
• Rule 5 of the Environment (Protection) Rules, 1986

Procedure for Environmental Clearance (EC) Transfer

1. Determine the Eligibility and Validity of EC

   Before initiating the transfer process, the project proponent must verify that the EC is valid and eligible for transfer.

   Validity Periods:

   • Construction / Non-Mining Projects
     • Valid until completion of construction or commencement of production/operations
   • Mining Projects
     • Valid for the project life as per the approved mining plan, subject to a maximum of thirty (30) years, extendable by an additional twenty (20) years
   • Operational Phase
     • Once construction is completed or production begins (verified through Consent to Operate), the EC generally remains valid for the remaining life of the project.
2. Identify the Applicable Transfer Timeline

   The transfer application shall be submitted through the PARIVESH Portal within the prescribed timeframe.

   • Standard Application Window
     • Application shall be submitted within twelve (12) months from the date of ownership change, acquisition, demerger, or name change.
   • Delayed Application Window

     Applications submitted between twelve (12) and twenty-four (24) months after the ownership change require condonation of delay by:

     • The Minister, MoEF&CC, for centrally appraised projects, or
     • The Chairperson of SEIAA for state-level projects.
   • Non-Transferred EC:

     Applications submitted after twenty-four (24) months shall be considered a non-compliance of the EC condition, and action shall be initiated against the project proponent as per existing rules.

3. Preparation of Required Documentation

   Transfer of EC does not require fresh appraisal by the Expert Appraisal Committee (EAC) or State Expert Appraisal Committee (SEAC).

   The following documents shall be submitted:

   • Application in the prescribed format on the PARIVESH portal.
   • No Objection Certificate (NOC) from the transferor.
   • Proof of corporate restructuring or ownership change, such as:
     • Orders of the National Company Law Tribunal (NCLT)
     • Sale deed or transfer agreement
     • Revised Memorandum or Articles of Association
     • Merger/Demerger documents
   • Undertaking by the transferee confirming:
     • All existing EC conditions
     • All pending environmental obligations and liabilities.
4. Submission and Approval
   • The transferee or transferor submits the online transfer application through the PARIVESH portal.
   • The concerned regulatory authority (MoEF&CC or SEIAA) examines the application.
   • Upon approval, the Environmental Clearance is transferred to the new entity with the same conditions and validity period as originally issued.
5. Transfer of Environmental Liabilities

   From the effective date of transfer, all existing environmental obligations, compliance requirements, and liabilities automatically shift to the transferee entity.

   The new entity becomes responsible for:

   • Compliance with EC conditions
   • Environmental monitoring and reporting
   • Any pending regulatory actions or compliance requirements.

Guidelines for Delayed/Non-Transferred Environmental Clearances

To address cases where ECs are not transferred within the stipulated time after ownership changes, the government introduced a structured enforcement mechanism.

Timeframe for Transfer

• The original EC holder shall apply for transfer within 12 months from the date of ownership change.
• Failure to do so may result in the EC being treated as invalid unless condonation is granted by the competent authority.

Action for Delayed Transfers

If the EC is not transferred within the prescribed timeline:

• The regulatory authority will issue a show-cause notice to the project proponent.
• The proponent must respond within 30 days, explaining the reasons for the delay.
• If:
  • No response is received, or
  • The justification is unsatisfactory;

  The authority may suspend or revoke the Environmental Clearance.

Exceptional Circumstances

In exceptional cases, the authority may allow a delayed transfer if justified by valid reasons such as:

• Ongoing legal disputes
• Force majeure events
• Administrative or regulatory delays

Such requests are evaluated on a case-by-case basis.

Conclusion

The Environmental Clearance transfer mechanism ensures continuity of environmental compliance when project ownership changes. The process allows ECs to be transferred without fresh appraisal, provided the new entity assumes all regulatory responsibilities and adheres to the original conditions.

The 2025 enforcement framework strengthens compliance by introducing strict timelines, regulatory oversight, and penalties for delayed transfers, thereby ensuring accountability and effective environmental governance.