Centre Eases Compliance for White Category Industries with Permission Exemption
The Indian government has sought the comments of State Pollution Control Boards (SPCBs) regarding recent amendments to notifications related to Environmental Clearance (EC) exemptions for ‘white category’ industries. These industries, which are classified as non-polluting or minimal-polluting, are now set to benefit from exemptions in a bid to ease their compliance process and promote ease of doing business.
The government’s decision is rooted in a broader strategy to simplify environmental regulations without compromising on sustainability. In October 2024, the Ministry of Environment, Forests and Climate Change (MoEFCC) took a significant step by exempting ‘white category’ industries from obtaining both Environmental Clearance (EC) and Consent to Establish (CTE), a requirement that was often seen as time-consuming and redundant for industries with minimal environmental impact. This decision followed the realisation that such industries posed little or no risk to the environment, making the dual compliance process unnecessary.
In a recent development, the Centre has called for the feedback of SPCBs on the amendment made in January 2025 to the exemption notifications. This feedback will help fine-tune the procedures and ensure that industries that qualify as ‘white’ categories continue to meet basic environmental safeguards while bypassing redundant procedural delays. The new amendment focuses on simplifying the requirements, allowing these industries to concentrate on their core activities without the additional burden of extensive paperwork. White category industries are often involved in operations that have minimal environmental impact, such as assembly lines or simple manufacturing processes. The exemption of these industries from the dual approval process is seen as a step towards reducing bureaucratic inefficiencies and encouraging the growth of low-impact businesses. It also aims to provide a much-needed boost to India’s industrial sector, aligning environmental compliance with the country’s push to foster a business-friendly environment.
As per the amended regulations, the industries still need to obtain EC under the Environmental (Protection) Act of 1986. However, once they have this clearance, they will no longer require the separate CTE, provided that they comply with the stipulated environmental safeguards. This exemption is especially important for industries that are primarily focused on activities like assembly lines, where emissions and waste generation are minimal. The MoEFCC’s initiative is part of a larger set of reforms designed to balance environmental protection with ease of doing business. These measures are aimed at improving the ease of doing business rankings for India by removing unnecessary hurdles for industries, especially those in the early stages of establishment or expansion. By reducing regulatory burdens, the government hopes to encourage more entrepreneurs and established companies to set up operations in India.
The Maharashtra Pollution Control Board (MPCB), one of the key regulatory bodies in the country, has expressed its support for this initiative. Avinash Dhakne, Member Secretary of MPCB, highlighted that the government’s approach is working on two fronts: ensuring environmental compliance while also easing business processes. He noted that these changes will have a positive impact on industries across Maharashtra, particularly those in manufacturing sectors such as assembly lines. While the MoEFCC’s changes are a welcome step for businesses, it is crucial that the balance between development and environmental protection remains intact. The government’s move to integrate environmental safeguards into the project conditions is an important aspect of this process, ensuring that industry growth does not come at the expense of sustainability. As the Centre seeks comments from the SPCBs on the amendments, it is clear that these efforts aim to make environmental clearance processes more efficient while safeguarding India’s natural resources. These steps demonstrate a commitment to not just boosting industrial growth but also fostering a cleaner, greener future for the country.
