Environmental Impact Assessment for projects was made mandatory in India in 1994 by the Ministry of Environment and Forests vide the Environment Impact Assessment Notification no. S.O.60(E), dated 27/01/1994 under the Environmental (Protection) Act, 1986.

The Ministry of Environment and Forests has brought out a new notification on 14 September 2006, which has significantly changed the approach to EIA processes in India. In the original EIA Notification of 1994, tourism (including hotels, beach resorts) was considered as a Category 1 project. That is, projects where EIA is mandatory and requires clearance from Central Government for: all tourism projects between 200m – 500m of High Water Line and at locations with an elevation of more than 1000mwith investment of more than Rs.50 million were included in Schedule 1 of the EIA Notification . However, the new Notification has totally neglected Environmental Impact Assessments for tourism projects and mentions tourism only in passing.