T.N. Godavarman Thirumulpad v. Union of India - International ...

so as to balance economic development and environmental protection. Both have to gohand in hand. In ultimate analysis, economic development at the cost of degradation ofenvironments and depletion of forest cover would not be long lasting. Such developmentwould be counter productive. Therefore, there is an absolute need to take allprecautionary measures when forest lands are sought to be directed for non forest use.The point in issue is whether before diversion of forest land for non- forest purposes andconsequential loss of benefits accruing from the forests should not the user agency ofsuch land be required to compensate for the diversion. If so, should not the user Agencybe required to make payment of Net Present Value (NPV) of such diverted land so as toutilize the amounts so received for getting back in long run the benefits which are lost bysuch diversion? What guidelines should be issued for determination of NPV? Shouldguidelines apply uniformly to all? How to calculate NPV? Should some projects beexempted from payment of NPV? These are the main aspects which require examinationand determination in the backdrop of various legislations which we would presentlynotice.The legislature to provide for conservation of forest and for matters connected therewithor ancillary or incidental thereto enacted the Forest (Conservation) Act, 1980 (for short,the 'FC Act'). It postulates that no State Government or other authority shall make, exceptwith the prior approval of the Central Government, any order directing that any forestland or any portion thereof may be used for any non-forest purpose. The CentralGovernment under the FC Act has been empowered to constitute a Committee to adviceit with regard to grant of approval. Under Section 2 of the Act the question of use of anyforest land for non-forest purposes and any other matter connected with the conservationof forest may be referred to such a committee by the Central Government under the FCAct. The contravention of any of the provisions of Section 2 has been made an offence.Noticing the decline in environment quality due to increasing pollution, loss of vegetalcover and biological diversity, excessive concentrations of harmful chemicals in theambient atmosphere and in food chains, growing risks of environmental accidents andthreats to life support system, the Environment (Protection) Act, 1986 (for short, the 'EPAct') has been enacted. It has been noted in the Statement of Objects and Reasons thatalthough there are existing laws dealing directly or indirectly with several environmentalmatters, it is necessary to have a general legislation for environmental protection.Existing laws generally focus on specific types of pollution or on specific categories ofhazardous substances. Some major areas of environmental hazards are not covered. Therealso exist uncovered gaps in areas of major environmental hazards. There are inadequatelinkages in handling matters of industrial and environmental safety. Control mechanismsto guard against slow, insidious build up of hazardous substances, especially newchemicals, in the environment are weak. Because of a multiplicity of regulatory agencies,there is need for an authority which can assume the lead role for studying, planning andimplementing long-term requirements of environmental safety and to give direction to,and co-ordinate a system of speedy and adequate response to emergency situationsthreatening the environment. The EP Act was, therefore, enacted to provide for protectionand improvement of environment and for matters connected therewith. The Central2