Ministry of Environment, Forest and Climate Change (MoEFCC) Notifies Single Clearance for MSME’s

New  Delhi: Ministry of Environment, Forest and Climate Change (MoEFCC)
In a progressive move to streamline business regulations, India’s Ministry of Environment, Forest and Climate Change (MoEFCC) has eliminated the need for dual environmental approvals for certain industries. As per the latest gazette notification, industries classified under the “white” or non-polluting category will no longer require both the Environmental Clearance (EC) and the Consent to Establish (CTE) from the State Pollution Control Boards (SPCBs). This measure addresses long-standing demands from industrial stakeholders and aims to simplify the regulatory landscape, reduce compliance time, and encourage eco-friendly industrial growth in India.

Simplifying Environmental Compliance for Businesses
Traditionally, new industries were required to secure both an Environmental Clearance (EC) and a Consent to Establish (CTE) before beginning operations. However, this dual approval process often led to bureaucratic delays and added to the operational costs of non-polluting sectors. The newly announced notification merges these requirements, allowing industries to operate with a single environmental clearance if they fall under the white category. This move is intended to cut down redundant paperwork, enabling companies to focus on business activities without unnecessary regulatory bottlenecks.

Streamlined Processes with Environmental Safeguards
Under the updated guidelines, industries that obtain an EC will not need additional CTE approval. This simplified process is complemented by a new Standard of Procedure (SoP) to ensure that environmental considerations are comprehensively reviewed during the EC process itself, covering previously required CTE elements. SPCBs will continue to be consulted during the EC review, ensuring that environmental standards remain robust without duplicating procedural steps. This process overhaul is expected to create a favorable business environment, particularly for small and medium-sized enterprises.

Ensuring Revenue Stability for States
To balance the regulatory easing with financial implications for state bodies, the government has also mandated that companies in the white category must still pay the CTE fee. This approach allows SPCBs to retain their revenue without imposing procedural redundancies, thus benefiting state economies while providing industries with a smoother compliance pathway.

Encouraging Sustainable Business Practices with Ecomark
In addition to reducing regulatory hurdles, the MoEFCC recently launched the Ecomark scheme, a label for environmentally friendly products that aligns with the “Lifestyle for Environment” (LiFE) initiative. This scheme promotes sustainable manufacturing and consumption practices by encouraging industries to adopt eco-friendly processes. It’s overseen by the Central Pollution Control Board (CPCB) and the Bureau of Indian Standards (BIS), aiming to enhance consumer awareness and support sustainable business practices in alignment with India’s climate goals.

The latest regulatory changes, combined with the Ecomark initiative, underscore India’s commitment to sustainable development. With streamlined approvals and an emphasis on eco-friendly practices, the government aims to foster a balanced approach to industrial growth and environmental protection.

Key Highlights

1. Single Clearance Process: Industries in the non-polluting white category now require only an EC, eliminating the need for CTE.
2. Environmental Safeguards: New SoP ensures comprehensive review during EC, maintaining environmental standards.
3. Revenue Stability: Industries will continue paying CTE fees, preserving state revenue.
4. Eco-Friendly Incentives: The Ecomark scheme encourages sustainable business practices, supporting India’s climate goals.

The Gazette notification links: Click “ Gazette link 1 & Gazette Link 2”  posted on 14th November 2024.

Credits: PIB, NEW DELHI