The Environment Protection Act of 1997 makes it mandatory for developers of large scale project to complete EIA study before starting construction works.

11 November 2013 will be the ground-breaking for the 58km highway that links Kathmandu with Tarai.

However, government agencies said that the company had not carried out EIA study for the project. The company had only received permission to begin EIA study with approved Terms of Reference (TOR) and scoping document in January from the Ministry of Science, Technology and Environment (MoSTE).

It is impossible for the company to get the EIA study report approved before the declared date as it has yet to submit its report to the Ministry of Physical Infrastructure and Transport (MoPIT).

As per the existing rules, the company has to first submit EIA study report to MoPIT. The MoPIT will then forward the report with well explained mitigating measures to the MoSTE for final approval.

The MoPIT officials say it takes about two to three months to study the EIA report with experts. Likewise, MoEST officials said they will take about four to five months to evaluate the document, incorporate the suggestions of the experts and display the report at the community level for 35 days in places affected by the project.

According to NPBCL, the project is estimated to cost NPR 34.5bn (USD 343M).

Officials of MoPIT argued the project can have severe environmental impacts if not duly mitigated.

The project is a complex infrastructure project with three tunnels up to 3.4km in length, cut slopes of up to 70m and 15 bridges.

Kush Kumar Joshi, president of NPBCL, claimed that the company had already got the EIA study report approved from the MoSTE and Ministry of Forest and Soil Conservation (MoFSC).

"Some works on EIA are remaining. They can be done during land acquisition," Joshi maintained.

Yagyanath Dahal, spokesman for MoFSC, said the ministry has not issued EIA approval to the company. "We have only permitted the company to conduct EIA study," he added.

Hari Kumar Shrestha, joint secretary of MoSTE, said approval of EIA study report is a must to begin construction of any highway.

According to Clause 18 of the Environment Protection Act, authorised officials can declare immediate closure of construction works if a developer starts construction without EIA approval from MoSTE. The Clause further says, "And the officials or the concerned company will also be penalised up to NPR 100,000 (USD 1,000) according to the degree of offence."

MoPIT secretary Tulasi Prasad Sitaula declined to comment on the issue.