The Sharavathi Pumped Storage Project faced intense scrutiny from environmentalists and an expert committee under the Ministry of Environment, Forest and Climate Change (MoEFCC). The primary concern is the ecological degradation of the Western Ghats, specifically the habitat of the endangered Lion-Tailed Macaque. The sanctuary serves as a critical biological corridor and was created by integrating protected zones to ensure stronger conservation efforts. This rejection highlights the ongoing tension between large-scale infrastructure development and the protection of biodiversity-rich, sensitive regions in India.