Abstract

This research examines the environmental approval process in Nepal and compares it with those in India and Bangladesh, focusing on the time taken to complete the assessment of environmental study reports. The study conducts three levels of analysis. First, the policy review outlines all relevant environmental policies and laws, highlighting key provisions related to approval timelines. While not every step of the environmental study process has a mandated time frame, the legal time limits for report forwarding and approval are explicitly defined. Second, statistical analysis reveals a significant discrepancy between the statutory and actual approval times. While the legal mandate is just 35 days for Environmental Impact Assessment (EIA), assessing a report actually takes 339 days on average. The trend line reveals that the average time taken is decreasing. However, it is still much higher than India’s average EIA approval time of 64 days. Third, through a comparative analysis of eighteen different components of the environmental assessment process, this paper identifies the possible factors contributing to the delays, such as ambiguous jurisdiction, lack of nodal agency, lack of integrated guidelines, high centralization, and no use of e-governance. This paper also compares the thresholds that trigger the environmental study across eight sectors for three countries and finds that Nepal’s thresholds are narrower than India’s and comparable to Bangladesh’s. Recommendations made include clarifying jurisdictional roles, developing integrated guidelines, establishing specialized nodal agencies, and implementing digital systems. Overall, this research attempts to address flaws in Nepal’s environmental assessment system, offering solutions for efficient environmental regulation and improving the business environment in Nepal.

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