The Central Government has amended the Air (Prevention and Control of Pollution) Act, 1981, and the Water (Prevention and Control of Pollution) Act, 1974, to exempt certain categories of industries from obtaining consents. This change aims to simplify regulatory processes and promote ease of doing business. A press release on these changes was issued on February 3, 2025.
Key Changes
Notifications dated November 12, 2024 have completely exempted “white category” industries from the consent mechanism. Other categories are exempt from “Consent to Establish” (CTE) if the project or activity has already received environmental clearance (EC) under the Environmental (Protection) Act, 1986.
A Standard Operating Procedure (SOP), initially issued on November 14, 2024, and partially modified on January 14, 2025, outlines the implementation of these exemptions.
For projects requiring prior EC, the environmental safeguards related to establishing industries will now be integrated into the EC conditions themselves. This means that the EC will cover aspects previously addressed by the CTE.
The SOP mandates that respective State Pollution Control Boards (SPCBs) provide comments on the project site, feasibility, and environmental safeguards. These comments will be considered and integrated into the EC conditions. Provisions for payment of necessary fees to the SPCBs have also been made.
Rationale and Benefits
The government has undertaken these reforms to streamline the EC process, balancing development needs with environmental safeguards. The exemption is expected to:
- Reduce the compliance burden on industries.
- Promote ease of doing business by eliminating duplicate approvals, as the criteria for EC and CTE often overlapped.
Environmental Impact and Continued Regulation
The government asserts that these exemptions will not negatively impact the environment. The integration of environmental safeguards into EC conditions, along with the SPCBs’ involvement in the EC process, will ensure continued environmental protection.
Critically, the “Consent to Operate” (CTO) mechanism remains in place. SPCBs will continue to regulate and monitor potential environmental impacts of projects through the CTO process, even for projects exempt from CTE. This ensures ongoing oversight and accountability.
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