To mitigate impacts on flora and fauna and deforestation, Central Government while according approvals under the Forest (Conservation) Act, 1980 for diversion of forest land for different projects stipulates appropriate conditions.

Major development projects have an impact on the surrounding environment mainly on flora and fauna. Project proponents in developing countries often claim that the development projects are designed and implemented in environmentally-sensitive ways that minimize the risks of deforestation and biodiversity loss. However, environmentalists warn that forests continue to shrink at an alarming rate because of development pressures.

Ministry of Forest Environment and Climate Change, Government of India, has mandated online filing of applications seeking approval under Forest Clearance Act 1980. Relevant information related to the project area, forest land proposed for diversion, compensatory afforestation and other environmental mitigation measures need to be presented in a systematic manner for evaluation and consideration for approval.