The ministry of forest and environment has refused to lift the moratorium on environmental clearance to set up new projects in the Visakhapatnam industrial cluster. In January 2010, the Centre ruled that projects meant for critically polluted areas and industrial clusters, as identified by the Central Pollution Control Board, would not be considered for environmental clearance. The Pollution Control Board prepares time-bound action plans during the period of moratorium to improve the quality of environment in these industrial clusters.
Following action plans submitted in 25 industrial clusters, including Patancheru-Bollarum industrial cluster, the Centre lifted the ban in October 2010. But the moratorium on 18 other industrial clusters identified as critically polluted, including Visakhapatnam, was extended up to March 31 in 2010. The ministry has now extended the ban in these 18 clusters till further notice. The ministry has also sought a report from the CPCB on progress of implementation of the action plans in these industrial clusters.