Revised Categorisation of Industries (R/O/G/W/B)

Consent Management

Classification of Industries (Red/Orange/Green and White)

Revised guidelines under Section 18(1)(b) regarding the harmonization of the classification of industrial sectors into Red, Orange, Green, and White categories, pursuant to the Water (Prevention and Control of Pollution) Act, 1981, and the Air (Prevention and Control of Pollution) Act, 1981.

Classification of industrial sectors under the Red, Orange, Green, and White categories.

In 1989, the Ministry of Environment, Forest and Climate Change (MoEFCC) issued notifications aimed at regulating or restricting the operations of certain industries to protect the ecologically sensitive Doon Valley. To streamline decision-making regarding the industrial sector, these notifications introduced the concept of classifying industries into "Red," "Orange," and "Green" categories. Subsequently, this concept was extended to other parts of the country, not only in relation to the industrial sector but also with the aim of streamlining regulations concerning consent management and inspection procedures associated with industries.

As the concept of industrial classification continued to be applied and interpreted differently by various State Pollution Control Boards, a need arose to bring about the necessary uniformity regarding this concept across the country. To harmonize the classification criteria, the CPCB issued directives to all SPCBs/PCCs under Section 18(1)(b) of the Water (Prevention and Control of Pollution) Act, 1974, to ensure uniformity in classification. According to the CPCB's final list, 85 types of industrial sectors were categorized as "Red," 73 as "Orange," and 86 as "Green."

Thus, the classification process was primarily based on the size of the industries and their resource consumption. Emissions, the nature of pollution, and the potential impact on health and the environment were not considered primary criteria. Industrial associations had demanded a more transparent method for the classification of industrial sectors by SPCBs/PCCs. Accordingly, this matter was discussed in detail by a "Working Group"—comprising members from the CPCB, APCB, TNPCB, and WBPCB—during the national-level conference of state ministers held in New Delhi on April 6–7, 2015. Measures are to be taken to restructure the criteria for industrial classification and to make the functioning of the PPCB, MPPCB, and Maharashtra PCB transparent and rational for industries.

The executive group has developed criteria for classifying industrial sectors based on a pollution index, taking into account emissions (air pollutants), wastewater (water pollutants), generation of hazardous waste, and resource consumption. For this purpose, references are drawn from the Water (Prevention and Control of Pollution) Cess (Amendment) Act, 2003, and the notifications issued by the MoEFCC under the Environment (Protection) Act, 1986. The Pollution Index (PI) for any industrial area ranges from 0 to 100, with an increasing PI value indicating a higher level of pollution load in that area. Based on a series of brainstorming sessions among the CPCB, SPCBs, and MoEFCC, the following criteria have been finalized for the "Pollution Index Category" with the aim of classifying industrial sectors.

Industrial areas with a pollution index of 60 and above – Red Category
Industrial areas with a pollution index of 41 to 59 – Orange Category
Industrial areas with a pollution index of 21 to 40 – Green Category
Industrial areas with a pollution index of up to 20 – White Category

The newly introduced 'White' category industries comprise industrial sectors that are non-polluting. Examples include the manufacture of biscuit trays from rolled PVC sheets (using automatic vacuum forming machines), the production of cotton and woolen hosiery (without any dyeing or washing processes), and the manufacture of electric lamps (bulbs) only. And manufacturing CFLs, producing scientific and mathematical instruments using photovoltaic cells, and generating power through wind energy, mini-hydel power (less than 25 MW), and solar energy.

The key features of "re-categorization" are as follows:

Importance has been given to the pollution potential associated with industrial sectors based on scientific criteria. Furthermore, wherever possible, the classification of industrial sectors is also considered based on factors such as raw material usage and the manufacturing processes employed.
There will be 60 units in the 'Red Category' within the industrial sector.
There will be 83 units in the orange category within the industrial sector.
The 'Green' category in the industrial sector will be 63.
The newly identified 'White' category comprises 36 industrial sectors that are virtually pollution-free.
Industries in the 'White' category do not need to obtain 'Consent to Operate' approval; a notification to the concerned SPCB/PCC is sufficient.
Traditionally, 'Red Category' industries will generally not be permitted in ecologically sensitive or protected areas.

The objective of the classification is to ensure that industries are established in a manner consistent with environmental goals. The new criteria will encourage industrial sectors to adopt clean technologies, resulting in reduced pollution. Another feature of the new classification system is that it facilitates self-assessment by industries, as the earlier assessment process has been removed. This "reclassification" is part of the country's ongoing efforts, policies, and objectives to establish a clean and transparent operational framework, and it encourages business growth. Other efforts include the installation of continuous online emission/effluent monitoring systems in polluting industries, the revision of the CEPI (Comprehensive Environmental Pollution Index) concept for assessing polluted industrial clusters, the review of existing industrial emission and effluent discharge standards, the launch of special initiatives to control pollution in the Ganga river basin, and much more for the future.

Consent Management

Section Title