New Delhi: In a landmark move aimed at reducing the compliance burden for businesses, the Government of India has simplified the approval process for new industries by removing the dual requirement of obtaining both Environmental Clearance (EC) and Consent to Establish (CTE). This decision, announced by the Ministry of Environment, Forest and Climate Change (MoEFCC), addresses long-standing demands from the industry to streamline approvals, enhance ease of doing business, and eliminate redundant regulatory procedures.
The reform specifically benefits industries falling under the ‘white’ category—classified as non-polluting—which are now exempt from the need to acquire either Consent to Establish (CTE) or Consent to Operate (CTO) under the Air Act and Water Act. Additionally, industries that secure an Environmental Clearance will no longer need to seek separate CTE approval. This change reduces duplication, accelerates project timelines, and alleviates administrative burdens on businesses, facilitating a smoother regulatory process.
In a statement, the MoEFCC emphasized that the new framework integrates considerations typically addressed in the CTE process directly into the Environmental Clearance procedures. A Standard Operating Procedure (SoP) has been introduced to ensure that all environmental aspects usually evaluated in the CTE process are thoroughly reviewed within the EC process. As part of this integrated approach, State Pollution Control Boards (SPCBs) will be involved in the Environmental Clearance assessments to ensure robust environmental oversight at the state level.
To address potential concerns from state governments about revenue impacts due to the removal of the CTE requirement, industries will still be required to pay the CTE fee. This measure is expected to secure the revenue flow to state pollution control authorities while simplifying the procedural obligations for the industry.
Industry leaders and stakeholders have widely welcomed the change, citing the potential for increased investment, reduced compliance costs, and accelerated project initiation. The decision marks a significant step in promoting a regulatory environment conducive to economic growth while ensuring essential environmental safeguards are maintained.