In the middle of the growing scuffle between the Ministry of Environment and other ministries, Prime Minister Manmohan Singh had stated that a very “sensitive regulatory system” is required to be on place for environmental issues in order to achieve the balanced growth.

While speaking in the Lok Sabha, Prime Minister Manmohan Singh said, “We need more competition in our country to stimulate our economy to promote efficiency. But at the same time we need the regulatory system to ensure that there is fair competition, that the basic purposes of having an environment friendly policy are not ignored.”

While replying to a debate on the motion of thanks to President Pratibha Patil for her address to the Parliament, the PM acknowledged that there is a “delicate trade off” between the environment and growth.

The PM stated that “We can neglect neither. Therefore, we need a very sensitive regulatory system. But if we talk of a regulatory system we open up the scope of discretion as well.”

Further he added that, “Therefore, we have to re-visit the regulatory framework in order to ensure that while we recognise the need for having a sound regulatory system, it must not degenerate once again to a new way of bringing back the licence and permit raj.”