EIA is an assessment of the environmental consequences it can be positive or negative. EIA is carried out to ensure that the upcoming activity will not cause any threat to environment.

The projects are categorized in two categories -Category A and Category B based on spatial extent of potential impacts on human health and natural and manmade resources.

All project and activities included in Category A in the Schedule, including expansion and modernization of existing projects or activities and change in product mix, which shall require prior environmental clearance from the Central Government in the Ministry of Environment Forests and Climate Change (MoEF&CC).

All projects or activities included as Category ‘B’ in the Schedule, including expansion and modernization of existing projects or activities or change in product mix will require prior environmental clearance from the State/Union territory Environment Impact Assessment Authority (SEIAA). The projects requiring an Environmental Impact Assessment report shall be termed Category ‘B1’ and remaining projects shall be termed Category ‘B2’ and will not require an Rapid Environmental Impact Assessment study report.