India eases compliance for white category industries

In a move aimed at streamlining compliance, India’s Union Environment Ministry has exempted industries in the ‘white category’—non-polluting industries with a pollution index score below 20—from obtaining separate Consent to Establish (CTE) and Consent to Operate (CTO) from state pollution boards.

Industries classified as non-polluting under the ‘white category’ will no longer need to seek separate approvals in the form of Consent to Establish (CTE) and Consent to Operate (CTO) from state pollution boards.

Instead, these approvals will be integrated into the environmental clearance (EC) process managed by the Union environment, forest, and climate change ministry.

This initiative by the ministry aligns with government efforts to simplify regulatory compliance and enhance the ease of doing business in India. Under the new rules, a white category industry—defined by a pollution index score under 20—will be exempted from the CTE/CTO requirements if it has obtained environmental clearance.

The ministry, in a notification under the Air Act, 1981, and Water Act, 1974, noted that this change responds to industry demands to eliminate ‘dual compliance’ involving both environmental clearance and CTE/CTO approvals for new ventures.

“Now, non-polluting white category industries will not be required to take CTE or Consent to Operate at all. The industries who have taken EC will not be required to take CTE. This will not only reduce compliance burden, but also prevent duplication of approvals,” the environment, forest, and climate change ministry said in a press statement.

Additionally, plants that have previously obtained environmental clearance under the 2006 notification (S.O. 1533(E)) from the former Ministry of Environment and Forests are exempt from needing ‘Consent to Establish’ for their ongoing operations.

To implement this, the ministry has consolidated the two approvals and issued a standard operating procedure. The ministry emphasized that due diligence on environmental standards would continue, with relevant CTE considerations incorporated into the EC regime in consultation with state pollution boards.

The CTE fee will still be payable to the states under the current mechanism to maintain state revenue.

In 2016, the Central Pollution Control Board identified 38 industries as ‘white category,’ mainly industrial plants with pollution index scores not exceeding 20. These include operations such as tea blending and packing, air cooler assembly and repairs, bicycle assembly, bio-fertilizers, and other small-scale, non-motorized manufacturing.

These operations mainly involve dry, mechanical, or non-emission processes, supporting sustainability and ensuring minimal environmental impact.