A Pre-Feasibility report during EC is a document that provides a preliminary assessment of the proposed project’s feasibility and potential environmental impacts. It outlines the project’s scope, objectives, activities, and potential impacts on the environment and local communities. The report includes a description of the project site, its geology, topography, hydrology, and climate. It also covers the proposed project’s technology, production processes, inputs and outputs, and waste management measures. The pre-feasibility report is an essential document that is submitted along with the application for environmental clearance (Form 1). The report helps the regulatory authorities to make informed decisions and ensure that the project complies with environmental regulations and policies.
Significance of Pre-Feasibility Study during EC
Significance of Pre-Feasibility study during EC is as follows:
Determines The Viability Of The Project – A Pre-Feasibility study during EC helps assess the project’s viability and identify potential environmental risks and challenges. The report also helps identify potential opportunities and benefits associated with the project.
Defines the Prerequisite as per EIA Notification, 2006 – In the context of environmental clearance, the pre-feasibility report is a prerequisite for obtaining prior environmental clearance, as per the guidelines of the EIA notification of 2006[1]. The report is submitted along with the application for environmental clearance to assess the proposed project’s potential impacts and suggest mitigation measures to minimize these impacts.
Provides Detailed Information – The report provides detailed information about the project site, the proposed project’s technology, production processes, inputs and outputs, and waste management measures. This information is important for assessing the project’s environmental impact and potential risks. It helps regulatory authorities make informed decisions and ensure the project complies with environmental regulations and policies.
Identification Of Technical And Financial Feasibility – The Pre-Feasibility study during EC is also useful for project proponents as it helps them identify the technical and financial feasibility of the proposed project. The report provides a detailed analysis of project costs, potential revenue streams, and investment requirements, which can help to make informed decisions regarding project implementation.
How to Create an Effective Pre-Feasibility Report during EC
Here are three key points to create an effective pre-feasibility report:
- Comprehensive Analysis: A Pre-Feasibility study during EC should comprehensively analyse the proposed project. It should cover all aspects of the project, including its scope, objectives, activities, and potential environmental, social, and economic impacts. The report should also analyse the technical and financial feasibility, including project costs, potential revenue streams, and investment requirements.
- Accurate Data and Information: The report should be based on accurate data and information obtained from reliable sources. The project proponent should thoroughly study the project site and its surroundings and gather relevant data and information to assess the project’s potential environmental impacts. The Pre-Feasibility study during EC should also include reporting on relevant information on the project’s technology, production processes, inputs and outputs, and waste management measures.
- Clear And Concise Language: The report should be written in clear and concise language that is easily understood by all stakeholders, including regulatory authorities, investors, and local communities. Technical terms and jargon should be avoided, and complex ideas should be explained. The report should also be well-organized and easy to navigate, with clear headings and subheadings. It should include a summary or executive summary to provide a overview of the report’s main findings and recommendations.
Industries That Need Pre-Feasibility Study during EC
As per EIA 2006, 39 projects will require the pre-feasibility report in the prescribed form. The projects are as follows:
| Sr. No. | Sectors |
| 1 | Mining of minerals, including Opencast/Underground mining |
| 2 | Offshore, onshore oil and gas exploration, development & production |
| 3 | River Valley, Hydel, Drainage and Irrigation projects |
| 4 | Thermal Power Plants |
| 5 | Nuclear power projects and the processing of nuclear fuel |
| 6 | Coal washeries |
| 7 | Mineral beneficiation, including palletisation |
| 8 | Metallurgical industries (ferrous & nonferrous) – both primary and secondary |
| 9 | Cement plants |
| 10 | Petroleum refining industry |
| 11 | Coke oven plants |
| 12 | Asbestos milling and asbestos-based products |
| 13 | Chlor-alkali industry |
| 14 | Soda ash Industry |
| 15 | Leather/skin/hide processing industry |
| 16 | Chemical fertilizers |
| 17 | Pesticides industry and the specific intermediates (excluding formulations) |
| 18 | Petro-chemical complexes which are industries based on the processing of petroleum fractions & natural gas and/or reforming to aromatics |
| 19 | Textile – cotton and manmade fibres |
| 20 | Petrochemical-based processing that processes other than cracking & reformation and not covered under the complexes |
| 21 | Synthetic organic chemicals industry such as dyes & dye intermediates; bulk drugs and intermediates excludingdrug formulations; synthetic rubbers; basic organic chemicals, other synthetic organic chemicals and chemical intermediates. |
| 22 | Distilleries |
| 23 | Integrated paint industry |
| 24 | Pulp and paper industry excluding manufacturing of paper from wastepaper and manufacture of paper from ready pulp without bleaching |
| 25 | Sugar Industry |
| 26 | Induction/arc furnaces/cupola furnaces/submerged arc furnace/crucible furnace/re-heating furnace of capacity more than 5Tonne per heat |
| 27 | Oil & gas transportation pipeline (crude and refinery/ petrochemical products), passing through national parks/ sanctuaries/coral reefs /ecologically sensitive areas including LNG terminal |
| 28 | Isolated storage and handling of Hazardous chemicals (As per threshold planning quantity given in column 3 of schedule 2 & 3 of MSIHC Rules 1989 amended 2000) |
| 29 | Air ports |
| 30 | All ship breaking yards including ship breaking units |
| 31 | Industrial estates/ parks/ complexes/areas, export processing Zones (EPZs), Special Economic Zones (SEZs), Biotech Parks, Leather Complexes |
| 32 | Common hazardous waste treatment, storage and disposal facilities (TSDFs) |
| 33 | Ports, harbours, jetties, marine terminals, break waters and dredging |
| 34 | Highways, railways, transport terminals, mass rapid transport systems |
| 35 | Aerial ropeways |
| 36 | Common Effluent Treatment Plants (CETPs) |
| 37 | Common Municipal Solid Waste Management Facility (CMSWMF) |
| 38 | Building and large construction projects including shopping malls, multiplexes, commercial complexes, housing estates, hospitals, institutions |
| 39 | Townships and Area development projects |
Note – Industrial projects located in any of the following notified ecologically fragile/sensitive areas would require environmental clearance irrespective of the type of project, they are as follows:
- Biosphere reserves
- National parks and sanctuaries
- National lakes and swamps
- Seismic zones
- Tribal settlements
- Areas of scientific and geological interest
- Religious and historical places
- Archaeological monuments
- Scenic areas
- Hill resorts
- Beach resorts
- Estuaries
- Gulf areas
- Border areas (international)
- Airports
- Defence installations (those of security importance and sensitive to pollution)
- Coastal areas that are rich in mangroves, corals, and breeding grounds of specific species.
Conclusion
Industries that have the potential to cause significant environmental impact are required to prepare a pre-feasibility report as part of obtaining environmental clearance. This report helps assess the proposed project’s feasibility and identify potential environmental risks and challenges. Preparing a comprehensive and accurate Pre-Feasibility study during Environmental Clearance is critical to obtaining environmental clearance and ensuring that the proposed project complies with environmental regulations and policies. The report should provide a detailed analysis of the project’s scope, objectives, activities, potential impacts, mitigation measures, and technical and financial feasibility. By following the guidelines for conducting a Pre-Feasibility study during EC, project proponents can ensure that their project is environmentally sustainable and financially viable, while also addressing the concerns of all stakeholders involved.
Also Read:
How To Prepare Pre-Feasibility Report For Common Effluent Treatment Plant (CETP)?
