Supreme Court Allows NHAI to Continue Projects Started Before Soil Extraction Order
The Supreme Court has permitted the National Highways Authority of India (NHAI) to continue work on projects that began before a court order requiring environmental permissions for soil extraction. This decision came after the NHAI filed a request to overturn the court's March 21 order, which had struck down a 2020 Environment Ministry notification that exempted linear projects (like roads and pipelines) from needing environmental clearance for extracting soil.
NHAI's Plea: The NHAI argued that the March 21 order threatened 485 projects worth Rs 6.19 lakh crore, potentially halting progress.
Supreme Court's Decision: Justices Abhay S Oka and Ujjal Bhuyan ruled that NHAI could continue projects where work orders had already been issued, but required NHAI to submit a complete list of these projects. The court did not suspend its March 21 order.
Solicitor General's Representation: Solicitor General Tushar Mehta represented the NHAI in court.
NHAI's Arguments: The NHAI stated it was not initially involved in the case and was thus unable to explain the financial and socio-economic impacts of halting projects. They highlighted that stopping work would disrupt 485 road projects covering approximately 16,546 kilometers and involving investments of around Rs 6.10 lakh crore.
Economic Impact: NHAI estimated the costs of stopping work, including idle costs, price adjustments, and toll revenue losses, at over Rs 10,500 crore. They warned of further financial and legal consequences for contractors and lenders.
Environmental Safeguards: NHAI assured the court that adequate environmental protections were in place under various guidelines and regulations during soil and sand extraction for projects.
Court's Original Order: The Supreme Court had nullified the Environment Ministry’s notification from the COVID-19 lockdown period, stating the government had not followed the correct procedures or shown public interest justification. The exemption for soil extraction without prior environmental clearance was deemed arbitrary and unconstitutional.
The NHAI now has permission to proceed with projects already in progress, provided they comply with the court's requirements for environmental safeguards and project listings.
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