India’s seventh attempt to designate 56,825 sq km of the Western Ghats as an Ecologically Sensitive Area faces a fresh deadlock. With six states opposing federal restrictions on mining, quarrying, and large construction projects, businesses operating in the region face continued regulatory uncertainty. The stalemate delays final environmental mandates, impacting project planning for infrastructure and industrial sectors.
The Ministry of Environment, Forest and Climate Change (MoEFCC) issued its seventh draft notification on July 27, 2026, aimed at declaring 56,825.7 square kilometers of the Western Ghats as an Ecologically Sensitive Area (ESA). However, the plan is currently stuck in a political standoff as six key states—Gujarat, Maharashtra, Goa, Karnataka, Kerala, and Tamil Nadu—have challenged the proposal. This impasse is creating an environment of regulatory uncertainty for companies involved in mining, quarrying, and large-scale infrastructure development.
Impact on Industrial Operations
The central government’s draft seeks to impose strict regulations on high-impact activities. These include a ban on new mining, quarrying, and thermal power plants, along with strict conditions for large construction projects exceeding 20,000 square meters. For businesses, the lack of a final, cleared policy creates significant hurdles in planning long-term capital spending. Without clarity on which land parcels will fall under the final protection zones, firms may delay expansion or new project initiations in these states.
State governments, meanwhile, are resisting the current draft. A primary point of contention is the use of satellite mapping to define the protected zones. For instance, the Karnataka legislature unanimously rejected the draft on September 22, 2026, arguing that the satellite data failed to accurately distinguish between protected forest cover and private agricultural land or existing settlements. State officials are pushing for a ground-level physical survey to ensure that local livelihoods and property rights are not negatively affected by the federal mandate.
The Path to 2027
With the expert committee’s mandate extended to July 2027, the framework for the Western Ghats is effectively in a period of policy limbo for the coming months. The success of this initiative now depends on the Centre's ability to address the mapping discrepancies raised by states while maintaining the integrity of the environmental protection goals.
For investors, the situation underscores the risk of delayed project execution in sensitive zones. The ongoing stalemate means that environmental clearances for new industrial or real estate projects in the designated areas will likely remain in flux. Investors tracking companies with operations in the Western Ghats should monitor state-level legislative updates and future MoEFCC revisions, as these will directly dictate the operational viability and compliance costs for assets located in this geographically sensitive corridor.