Industrial Sector Updates – Industrial Policy, Ease of Doing Business, etc.

No dual eco-clearance for 39 categories of industry

Note4Students

From UPSC perspective, the following things are important :

Mains level: Environmental Policies;

Why in the News?

The Environment Ministry has agreed to a long-standing request from industries to remove the need for environmental clearance and permission to set up operations. This will make it easier for businesses to comply with regulations.

India’s Environmental Policies and Goals

  • Streamlining Compliance: The government has removed the requirement for ‘white category’ industries to obtain both Environmental Clearance (EC) and Consent to Establish (CTE) {Dual eco clearance}. This decision is expected to reduce the compliance burden on businesses, allowing them to operate more efficiently without duplicative approvals.
  • Classification of Industries: Industries are categorized into four color-coded groups based on their pollution potential: Red (most polluting), Orange, Green, and White (least polluting). 
    • The recent exemption applies specifically to those in the White category, which includes sectors like solar energy production and fly ash brick manufacturing.
  • Alignment with National Goals: This move aligns with India’s broader environmental objectives as outlined in the National Action Plan on Climate Change (NAPCC) and commitments made under international agreements like the Paris Agreement.
    • These include targets for reducing emissions intensity and increasing non-fossil fuel energy sources.
  • Focus on Sustainable Development: The policy shift reflects a growing emphasis on balancing economic growth with ecological sustainability. It aims to foster an environment conducive to green technologies while still addressing pollution control through existing frameworks.
Note: Dual Eco-Clearance refers to the requirement for certain industries in India to obtain both Environmental Clearance (EC) and Consent to Establish (CTE) before commencing operations, ensuring compliance with environmental regulations.

Impacts of Eliminating Dual Eco-Clearance for Industrial Projects

  • Reduced Administrative Burden: By eliminating the need for dual clearances, businesses can save time and resources that would otherwise be spent navigating complex regulatory requirements.
  • Encouragement of Green Industries: The exemption is likely to encourage investment in green technologies and industries that contribute positively to environmental sustainability. This aligns with India’s goal of achieving net-zero emissions by 2070.
  • Potential Increase in Industrial Activity: With fewer regulatory hurdles, there may be an uptick in industrial activities within the exempted categories, potentially leading to job creation and economic growth in these sectors.

What are other potential risks associated with the new eco-clearance framework?

  • Environmental Oversight Concerns: Critics argue that easing compliance requirements could lead to lax environmental oversight, increasing the risk of pollution incidents if industries are not adequately monitored.
  • Inconsistent Implementation: The reliance on state departments for permitting could result in inconsistent application of regulations across different regions, potentially leading to environmental degradation in areas where enforcement is weaker.
  • Long-Term Sustainability Risks: While immediate economic benefits may arise from reduced compliance burdens, there is a concern that neglecting environmental checks could compromise long-term sustainability goals, particularly if industries expand without adequate ecological safeguards.

Way forward: 

  • Strengthen Monitoring Mechanisms for White Category Industries: Establish periodic audits and use digital monitoring tools to ensure compliance, maintaining oversight without imposing excessive regulatory burdens.
  • Standardize Implementation Across States: Develop clear, consistent guidelines for states to prevent uneven enforcement and ensure that reduced compliance requirements do not compromise environmental standards.

Mains PYQ:

Q Industrial pollution of river water is a significant environmental issue in India. Discuss the various mitigation measures to deal with this problem and also the government’s initiatives in this regard. (UPSC IAS/2024)

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