Keeping in view that requirement of forest land is large and is disproportionate to its power generation capacity and also keeping in view that very high ecological, environmental and social impact of the diversion of the vast tract of forest land would far outweigh the benefits likely to accrue from the project, Ministry of Environment, Forest and Climate Change has declined prior approval of Central Government under the relevant provisions of the law.

The Manipur Government had moved the Ministry of Environment, Forests and Climate Change seeking prior clearance for diversion of 22,777.50 hectares of forest land for construction of the Tipaimukh Hydel Project.

The forest land proposed to be diverted in Manipur contained 78,16,931 trees and 0.27 lakh bamboo clumps.