Centre to fast-track environment clearance for new businesses

Currently, to establish a business, industrialists have to seek a"Consent To Establish" permission from the state pollution control board and Environment Clearance (EC) from the environment ministry. 

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Once the new feature is in place, the business only has to get an environment clearance from the Centre.

Although the business would not require an approval from the state pollution control board, the state will be consulted by the Centre during the approval process.

In the context of environmental regulations, "consent to establish" (CTE) is a mandatory approval required before establishing any industry, project, or activity that could potentially discharge pollutants into the environment or emit air pollution.

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"We are working on the modalities so that dual permission is not required from the Centre as well as state. However, the interest of the state will be taken care of and they will be consulted and their inputs will be taken into consideration during the approval process," said an official privy to the development in the environment ministry.

"The move is likely to expedite the approval process and will facilitate Ease of Doing Business (EoDB)," stated another official.

The Environmental Impact Assessment Portal (PARIVESH 2.0) was created by the ministry of environment, forest and climate change (MoEFCC) to assist in environmental, forest, wildlife and coastal regulation zone clearances. According to the government, the average time taken for receiving an environment clearance has been reduced from 105 days to double digits.

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"Once it is implemented it will not only facilitate ease of doing business but also speed of establishing a new project. It will also help in optimum utilization of working capital," said Amit Thapar, Chairman, Confederation of Indian Industry Northern Region Committee on Exports.

Earlier, to facilitate ease of doing business, On 12 November 2024, the Center announced that industries categorized under the 'White Category' or non-polluting industries by the Central Pollution Control Board (CPCB) will no longer require prior approval from state pollution control boards to establish and operate. 

Under the new rules, industries falling under the white category also won't need permission from the state pollution board, and the permissions were merged with the environmental clearance granted by the ministry of environment.