Environmental and social risks in project financing: evidence from India

This report compiles some case studies of developmental projects in India that have been affected by environmental and social impacts arising out of the project activities.The acts and regulations governing the environmental and social aspects of project finance deals in India are elaborate and clear. However, based on the case studies it is evident that the implementation of these rules is the major concern. All the eight case studies where the projects have been temporarily or permanently stalled due to adverse environmental and social impacts fall into one of the following two categories: insufficient clearances or legal loopholes that allow for easy clearances and/or bypassing of legislations; and lack of authenticity and credibility of EIA reports, and lack of transparency in public consultation.