Environmental Impact Assessment (EIA) is an important management tool for ensuring the optimal use of natural resources for sustainable development. Environmental Management or planning is the study of the unintended consequences of a project. Its purpose is to identify, examine, assess and evaluate the likely and probable impacts of a proposed project on the environment and, thereby, to work out remedial action plans to minimize adverse impact on the environment.

The Ministry has issued the Environmental Impact Assessment Notification, 2006, which makes environmental clearance mandatory for the development activities listed in its schedule.