No Dual Eco-Clearance For 39 Categories Of Industry

15-11-2024

In November 2024, the Ministry of Environment, Forest and Climate Change (MoEFCC) has exempted 39 categories of non-polluting 'white category' industries from the mandatory requirement of approaching state pollution control boards for permission to run their industries.
This will reduce the dual compliance burden among industries, which required them to obtain both environmental clearance and consent to establish.

In the context of India, what do Environmental clearance and Consent To Establish mean?

Environmental clearance

Under the Environment Impact Assessment (EIA) notification, 2006 (notified under the Environment Protection Act, 1986), the industries must follow the prescribed procedure for certain categories of projects.
Based on the procedure, the EIA Notification, 2006, requires prior environmental clearance for projects listed in Schedule I (e.g., mining, thermal power plants, large-scale industrial projects, and construction projects).

Consent to Establish and Consent to Operate

Before setting up or operating, industries must obtain consent under the Water Act and Air Act:

Water (Prevention and Control of Pollution) Act, 1974: Section 25 and Section 26 require obtaining consent to establish and operate from the respective State Pollution Control Board (SPCB).
Air (Prevention and Control of Pollution) Act, 1981: Section 21 mandates industries to obtain consent to establish and operate from the SPCB.

Earlier, industries had to obtain both environmental clearance and consent to establish, causing a dual complaint burden and duplication of approvals. This has also resulted in delayed projects along with high operating costs for projects.

What are the new changes made?

The government, in its gazetted notification, has removed the dual compliance of Environmental Clearance (EC) and Consent to Establish (CTE) for 39 non-polluting white category industries when they establish new industries.
Now, these industries will not be required to take CTE or Consent to Operate (CTO) at all. The industries who have taken EC will not be required to take CTE.
These include, among others, manufacturing units to make solar cells and modules, wind and hydel power units; fly ash bricks/ block manufacturing; leather cutting and stitching and assembly of air coolers /conditioners, repairing and servicing.

What are white-category industries?

White category industries are those with minimal or no pollution potential, such as solar power plants, organic farming, or pottery. Introduced by Central Pollution Control Board in 2016, they are exempt from requiring environmental consents but must follow basic safeguards.

How industries are categorised?

The Central Pollution Control Board (CPCB), as per the 2016 classification, categorises industries into four colour-coded groups—Red, Orange, Green, and White—based on their pollution potential:

Red: high pollution potential. These industries have significant environmental impact (e.g., thermal power plants, cement, steel). Strict compliance with the Water Act, Air Act, and Hazardous Waste Management Rules is required.
Orange: Moderate pollution potential, with industries such as food processing and textiles. They must follow regulatory measures under the Water and Air Acts to control emissions and effluents.
Green: low pollution potential. Includes small-scale industries like handloom weaving and baking, with minimal compliance requirements under environmental laws.
White: Negligible pollution potential. Covers sectors like solar power and pottery, which are exempt from consent requirements but must follow basic environmental safeguards.

This classification helps in regulating pollution levels and enforcing appropriate monitoring mechanisms across industries.

What would be the advantages of the removal of compliance burdens for such industries?

Cost Savings: White-category industries save significant operational costs as compliance requirements for minimal-polluting activities are reduced. This allows companies to allocate resources more effectively toward innovation and productivity improvements, boosting overall efficiency.
Ease of Doing Business: Simple regulatory frameworks encourage industrial growth by reducing bureaucratic hurdles. Entrepreneurs and businesses can focus on scaling operations and contributing to economic development without navigating complex compliance procedures.
Encourages Green Practices: By exempting industries with minimal pollution, the notification promotes the adoption of eco-friendly practices. It incentivises industries to align operations with sustainable standards, reducing their environmental impact.
Promotes Sector Growth: The policy supports the expansion of white-category industries, fostering job creation and market diversification. It provides a conducive environment for domestic and foreign investment in this sector.
Administrative Efficiency: Reduced regulatory oversight for low-risk industries eases the workload on pollution control authorities. This allows agencies to focus more on monitoring high-pollution industries, ensuring better environmental governance.

The removal of the dual burden fosters ease of doing business and growth while supporting sustainability. However, it is vital to ensure these industries remain environmentally responsible and periodically reassess their classification to address emerging pollution risks.