It couldn’t have come from a more authoritative functionary of the Union government. Prime minister Manmohan Singh said on Tuesday that the process of granting environmental clearances was ‘corrupt’ and a ‘licence raj’ in another form.

Addressing a conference of state ministers in charge of environment and forests in the capital, the prime minister did not mince words. He said, “I wish to draw your attention to the view that environmental clearances have become a new form of licence raj and a source of corruption.”

Confirming what environmentalists had held for a long time, he said that some times there were discrepancies in the environmental impact assessment reports.

This was a matter that must be addressed head on. There were trade-offs that had to be made while balancing developmental and environmental concerns. But the procedures must be fair, transparent and hassle free. “Decisions must be taken within a specified time,” he said.

This brought forth a quick defence from the Union minister of state for environment and forests, Jairam Ramesh. Speaking to media at the end of the conference, he denied that the prime minister had called the process corrupt. Ramesh said that what the prime minister meant was that there was a ‘perception’ that environment clearances were licences to control. “He did not say it is being done.”

In his address, the prime minister said there was a need to prune the process of awarding clearances to construction projects, making it transparent and speedy.

He drew attention to the September, 2006 notification of the environment and forests ministry which, he said, was a major attempt to rationalise the system of giving mandatory environmental clearance.

His observations came in the backdrop of the ministry’s move for a ‘national green tribunal’ to deal with civil issues relating to environment and forests. The ministry also proposed an online application and monitoring system for clearances.

The Environment Protection Act allowed 210 days to complete the formalities to grant an environmental clearance, Ramesh said. A period of 150 days was allowed for giving forest clearance to a project already cleared by a state.

He said his ministry was making all efforts to ensure that clearances were given in a time-bound and transparent manner. Over 700 environment clearances were pending at the end of May when the new government came in. At the end of July, 500 projects, including 250 old cases, were awaiting clearance. This, despite the clearance of 500 projects in that period which saw more applications pour in.

The prime minister told the states to urgently set up their own bodies to study the environmental assessment impact of projects. “Effective coordination between the Union ministry and the state ministry is vital if we are to build a credible and efficient system of assessment and clearance,” he said.

The Union ministry on Tuesday decided to establish within a year an empowered environment protection authority for the effective implementation of the environment protection law and ensure compliance with stipulated safeguards. The ministry would also initiate preparation of state-level action plans, as suggested by the prime minister.