Environmental regulation for manufacturing units is governed through mandatory consents issued by the respective State Pollution Control Boards (SPCBs) or Pollution Control Committees (PCCs), under the overarching supervision of the Central Pollution Control Board (CPCB). These consents are legally mandated under three primary environmental laws: the Water (Prevention and Control of Pollution) Act, 1974, the Air (Prevention and Control of Pollution) Act, 1981, and the Environment (Protection) Act, 1986. Together, these laws ensure that no manufacturing activity adversely affects air, water, or land without adequate controls in place.

Every manufacturing entity that discharges waste, effluent, or emissions into the environment must first obtain two essential clearances: Consent to Establish (CTE) and Consent to Operate (CTO). CTE is required before setting up or expanding a factory, plant, or processing unit, whereas CTO is required before commercial operations begin. These consents aim to enforce environmental safeguards and pollution control mechanisms in industries of all sizes.

In this article, CA Manish Mishra talks about Pollution Control Board Consent for Manufacturing Units.

Industry Classification and Consent Requirements

Manufacturing units are categorized into four risk-based classifications: Red, Orange, Green, and White, based on their pollution potential. Red category industries are highly polluting and are subject to the most stringent scrutiny, while white category industries are deemed non-polluting and, in most cases, are exempt from needing formal consents. Each state pollution board maintains its own classification guidelines in alignment with national norms.

Under Section 25 and Section 26 of the Water Act, 1974, and Section 21 of the Air Act, 1981, it is illegal for a unit to commence operations or make discharges without the required permissions. Violations may result in criminal prosecution, financial penalties, and even closure orders by the pollution control authorities.

Consent Application Procedure

To apply for the Pollution Control Board consent, a manufacturing unit must first register with the respective state’s online environmental portal. The process begins with submitting an application for Consent to Establish, which requires the following details:

• Land ownership or lease documents

• Detailed project report (DPR)

• Layout plans showing pollution control systems

• Water and energy consumption data

• Air and water pollution load estimates

• Details of machinery, raw materials, and waste generated

• Environmental management plan

Once the project is approved in principle, a CTE is granted with conditions that must be fulfilled before operation begins. After meeting these pre-operational compliance conditions, the unit must apply for Consent to Operate, accompanied by evidence of installed pollution control equipment, compliance reports, and test certificates of emission or discharge levels.

Consent applications are usually submitted using standard forms (e.g., Form I for CTE and Form II for CTO). After technical and field inspection, SPCBs issue the consent certificate with validity ranging from 5 to 15 years, depending on the industry category and state norms.

Timelines, Validity, and Renewal

Consent timelines have been standardized in many states to enhance efficiency. Typically, Consent to Establish is granted within 30 to 60 days, and Consent to Operate within 60 to 90 days, depending on industry category. The validity of CTOs varies—5 years for red category, 10 years for orange, and 15 years for green. Renewal applications should be filed at least 120 days prior to the expiry date to avoid penalties.

The process of renewal involves submission of compliance reports, latest emission and effluent test results, maintenance logs of pollution control devices, and updated fee payments based on the capital investment or production capacity.

Fees, Penalties, and Incentives

Consent fees are calculated based on the capital investment and pollution load of the unit. Fees may range from a few thousand rupees for small green category units to lakhs for large red category projects. States also provide incentives for early renewal applications—typically a 5% fee rebate if applied more than 120 days in advance. Conversely, delays attract penalty slabs, which increase as the renewal date approaches or passes, including up to 100% late fee in cases of post-expiry submissions.

If any unit operates without a valid consent or fails to comply with the conditions laid down in the consent order, SPCBs can initiate legal action, levy fines, or even issue closure notices. These actions are taken under the powers granted by Section 33A of the Water Act and Section 31A of the Air Act, which authorize the board to issue directions, including the stoppage of electricity or water supply.

Environmental Compliance Obligations

After securing the consents, manufacturing units must maintain continuous environmental compliance. This includes:

• Installation of pollution control equipment such as Effluent Treatment Plants (ETPs), Air Pollution Control Devices (APCDs), scrubbers, and dust collectors

• Regular testing and monitoring of air, water, and noise emissions

• Submission of Environmental Statement (Form V) annually under the Environment Protection Rules

• Maintenance of waste manifests and authorization for hazardous waste under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016

• Adoption of water conservation and Zero Liquid Discharge (ZLD) wherever applicable

• Real-time online monitoring for large units as mandated by CPCB for parameters like pH, BOD, COD, particulate matter, and SO2

All compliance records must be preserved and made available to the Pollution Control Board officials during inspections.

Recent Regulatory Developments

To streamline the consent process and promote ease of doing business, several regulatory reforms have been implemented:

• Introduction of single-window clearance systems for combined consent and waste authorization applications

• Expansion of consent validity periods, reducing the frequency of renewals for compliant units

• Digitalization of the entire application, monitoring, and inspection process to ensure transparency

• De-linking of white category industries from mandatory consents, provided they file self-certification affidavits

• Emphasis on cleaner production practices and adoption of circular economy principles in pollution-intensive sectors

• Mandatory online continuous emission monitoring systems (OCEMS) for red category units and common pollution treatment facilities

These initiatives are designed to strike a balance between industrial growth and environmental protection.

Conclusion

Obtaining Pollution Control Board Consent is a fundamental legal requirement for any manufacturing unit in India. It ensures that industrial growth proceeds in an environmentally responsible and legally compliant manner. While the process may appear complex, it plays a vital role in protecting air, water, and land resources from the adverse impacts of industrialization. Manufacturers must treat this not as a one-time formality, but as a continuous obligation involving regular monitoring, reporting, and technological upgrades. Staying proactive with renewals, installing compliant treatment systems, and maintaining detailed records not only avoids penalties but also positions the unit as a responsible and sustainable business.