Executive Summary:
The Ministry of Environment, Forest and Climate Change responded on August 11, 2025, to a query regarding environmental clearances for government development works on forest land, specifically addressing a 33/11 KV substation project in Khargone Lok Sabha Constituency. The response clarifies the rules for environmental clearance, the basis for fee calculation, and the compensation demanded for forest land diversion. It outlines the processes and guidelines followed in determining the compensation amount.
Key Points / Main Content:
Environmental Clearance (EC)
* All projects listed in the Environmental Impact Assessment Notification, 2006, require prior EC, including those on forest land.
* ECs are granted only after Stage-I Forest Clearance, as per Supreme Court directives in W.P.(C) No. 202 of 1995, if the project involves forest land.
Fee Calculation
* Compensatory Afforestation and Net Present Value (NPV) are calculated according to Ministry guidelines under the Van Sanrakshan evam Samvardhan Adhiniyam, 1980.
Khargone Substation Project
* In-principle approval was issued on November 15, 2024, for diversion of 29.212 ha of Reserved Forest land for a 33 KV power line in favor of Madhya Pradesh Electricity Board.
* The Divisional Forest Officer, Khargone, requested a total of Rs. 10.32 crore for NPV, compensatory afforestation, and medicinal plantation.
* Rs. 2,79,78,669 demanded for NPV, calculated at Rs. 9,57,780 per hectare, as per the Government of India letter dated January 6, 2022.
* Rs. 6,44,63,075 demanded for Compensatory Afforestation plan in 60.00 hectares, prepared as per Government of India letter dated August 21, 2023, for double degraded forest land.
* Rs. 1,08,30,660 demanded for a medicinal plantation scheme in 30 hectares, as per the in-principle approval dated November 15, 2024.
Compensation Levies
* NPV charges are levied as per rates in the Consolidated Guidelines under the Van Sanrakshan Evam Samvardhan Adhiniyam, 1980.
* Compensatory Afforestation and medicinal plantation charges are levied by the State Government according to its plantation norms.
Impact Analysis:
Madhya Pradesh Electricity Board (User Agency):
* Impact: Required to pay Rs. 10.32 crore for forest land diversion for the 33 KV power line project.
* Action Required: Deposit the demanded amount for Net Present Value (NPV), compensatory afforestation, and medicinal plantation to the Divisional Forest Officer, Khargone.
Divisional Forest Officer, Khargone:
* Impact: Responsible for collecting compensation and ensuring compensatory afforestation and medicinal plantation.
* Action Required: Ensure collection of the demanded amount totaling Rs. 10.32 crore and implementation of the Compensatory Afforestation plan in 60.00 hectares and the medicinal plantation scheme in 30 hectares.
Ministry of Environment, Forest and Climate Change:
* Impact: Responsible for overseeing the environmental clearance process and ensuring compliance with guidelines.
* Action Required: Monitor the project's adherence to the conditions stipulated in the in-principle approval and the relevant regulations.
Key Entities Referenced
Van Sanrakshan evam Samvardhan Adhiniyam, 1980: An Indian law related to forest conservation and development.
Khargone Lok Sabha Constituency: A parliamentary constituency in Madhya Pradesh, India, relevant to the project's location.
Madhya Pradesh Electricity Board: The electricity board of Madhya Pradesh, the user agency involved in the power transmission line project.
Khargone District of Madhya Pradesh: The district in Madhya Pradesh where the power transmission line project is located.
Sirvel, Madhya Pradesh: Village in Madhya Pradesh where the 33/11 KV substation is planned.
Ministry of Environment, Forest and Climate Change: The Indian government ministry responsible for environmental protection and climate change policies.
Environmental Impact Assessment Notification, 2006: A notification that mandates prior Environmental Clearance (EC) for specific projects and activities.
Supreme Court of India: The highest judicial body of India, whose directions influence the granting of Environmental Clearances.
OIH
GOVERNMENT OF INDIA
MINISTRY OF ENVIRONMENT, FOREST AND CLIMATE CHANGE
LOK SABHA
UNSTARRED QUESTION NO. 3530
TO BE ANSWERED ON 11.08.2025
Environmental Clearance for setting up of Electricity Sub-Station
3530. SHRI GAJENDRA SINGH PATEL:
Will the Minister of ENVIRONMENT, FOREST AND CLIMATE CHANGE be pleased to
state:
(a) the rules to accord the environmental clearance for undertaking development works by
the Government on forest land;
(b) whether it is a fact that the fee for granting permission for the said works is fixed on the
basis of area and collected from the Government departments, if so, the details thereof;
(c) whether it is also a fact that the project cost of setting up of 33/11 KV sub-station in
village Sirvel development block, Bhagwanpura of Khargone Lok Sabha Constituency
is Rs. 3.50 crore but the Department of Forest has demanded the compensation of Rs.
10.32 crore due to which the establishment of the said sub-station is pending; and
(d) whether the Department of Forest is taking any initiative to reduce the compensation
amount of the said pending project ?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF ENVIRONMENT, FOREST AND
CLIMATE CHANGE
(SHRI KIRTI VARDHAN SINGH)
(a) All projects or activities covered in the schedule to the Environmental Impact Assessment
Notification, 2006, shall require prior Environmental Clearance (EC) to be setup any where in
the country, including forest land. In line with the directions of the Hon’ble Supreme Court,
in W.P (C) No. 202 of 1995, ECs are granted only after the grant of Stage-I Forest Clearance,
in case forest land is involved in the project area.
(b) The amount for Compensatory Afforestation and Net Present Value are applicable as per
the guidelines issued by the Ministry as per Van (Sanrakshan evam Samvardhan) Adhiniyam,
1980.
(c) The Government of India on 15.11.2024 issued the in-principle approval for Diversion of
29.212 ha Reserved Forest land for laying 33 KV line from Kadwali to Sirvel Power
Transmission Line in favour of Executive Engineer, Madhya Pradesh Electricity Board in
Khargone District of Madhya Pradesh. The Divisional Forest Officer, Khargone issued a
demand letter to the User Agency for depositing the amount of Net Present Value (NPV),
compensatory afforestation and medicinal plantation on the basis of the conditions imposed in
the approval issued by the Government of India.As per the rates of NPV mentioned in the letter dated 06.01.2022 of the Government of India,
an amount of ₹2,79,78,669/- has been demanded from the User Agency at the rate of
₹9,57,780/- per hectare. As per Government of India letter dated 21.08.2023 instructions have
been given to prepare Compensatory Afforestation plan in double degraded forest land in cases
of transmission line projects. Hence, the Divisional Forest Officer has prepared a
Compensatory Afforestation plan in 60.00 hectares and demand has been raised for an amount
of ₹6,44,63,075/- from the User Agency. As per the conditions imposed in the in-principle
approval dated 15.11.2024 issued by the Government of India, the Divisional Forest Officer
prepared a medicinal plantation scheme in 30 hectares below the line and raised a demand for
an amount of ₹1,08,30,660/- from the User Agency. Accordingly, the Divisional Forest Officer,
Khargone has issued a demand note to the User Agency to deposit an amount totaling to ₹10.32
crore.
(d) With regards to the compensatory levies sought from the User Agency, charges towards
Net Present Value is levied as per rates mentioned in the Consolidated Guidelines under the
Van (Sanrakshan Evam Samvardhan) Adhiniyam, 1980. Charges towards Compensatory
Afforestation and raising Medicinal Plantations under Right-of-Way is levied by the State
Government as per its plantation norms.
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