Be The Greenpreneurs Before Entrepreneurs

Understanding Environment Regulatory Framework in India

In the wake of deteriorating air quality indices (AQI) across the National Capital Region (NCR) and neighboring areas, the recent data from the Central Pollution Control Board (CPCB) has sounded yet another alarm on the urgent need for sustainable and eco-friendly initiatives. The air quality in Noidaand Greater Noida has reached alarming levels, with AQI readings of 352 and 314, respectively. Haryana's Gurugram is grappling with an even graver situation, as the AQI in Sector-51 soared to a staggering 444 at 5 am. Meanwhile, Delhi, the heart of the matter, recorded a 24-hour average AQI of 419 prompting the city government to explore innovative solutions. In a bid to combat the escalating pollution crisis, the Delhi government contemplated the use of cloud seeding technology for artificial rain. Moreover, with the government becoming increasingly stringent about compliance, individuals and businesses are urged to take a proactive stance in environmental stewardship. As the air quality continues to pose a severe threat to public health, it becomes increasingly imperative for individuals and businesses alike to embrace a new paradigm — that of becoming Greenpreneurs before Entrepreneurs.In India, New Companies, Industries & startups need to be well-acquainted with environmental laws, which includes crucial permits or consents under the following acts:

1.     The Water (Prevention and Control of Pollution) Act, 1974 (Water Act), initially outlining the powers, functions, and hierarchy of environmental agencies such as the CPCB and the SPCBs.

2.     The Air (Prevention and Control of Pollution) Act, 1981 (Air Act).

3.     The Environment (Protection) Act, 1986 (EP Act), serving as a comprehensive law that empowers the central government to implement necessary measures for environmental protection, enhancement, and the prevention, control, and reduction of environmental pollution. Numerous rules and notifications have been formulated under this act, including:

·       E-Waste (Management) Rules 2016 (amended in 2018) - E-Waste Rules.

·       Batteries (Management & Handling) Rules 2001 (and the proposed draft Battery Waste Management Rules 2020).

·       Bio-Medical Waste Management Rules 2016.

The key regulatory authorities established through these acts are:

a.      National Green Tribunal (NGT).

b.     Central Pollution Control Board (CPCB).

c.      State Pollution Control Boards (SPCBs).

Licenses-

1)     Environmental Impact Assessment (EIA)

The Environmental Impact Assessment (EIA) is a critical process integral to major development projects, governed through EIA notification, 2006. It serves as a systematic and comprehensive evaluation of the potential environmental impacts associated with a proposed project, ensuring that environmental considerations are factored into decision-making. The Environment Impact Assessment Notification of 2006 categorizes activities into A and B based on the spatial extent of potential impacts and effects on human health and natural/man-made resources. Prior environmental clearance is required for new projects and the expansion/modernization of existing projects falling under these activities.

For Category A activities, clearance is needed from the Central Ministry of Environment, Forests, and Climate Change, relying on the Expert Appraisal Committee's recommendation. Category B activities require clearance from a state-level EIA Authority, considering the recommendation of the state-level Expert Appraisal Committee.

The clearance process involves four stages:

Stage 1: Screening (For Category B only)

Stage 2: Scoping

Stage 3: Public Consultation

Stage 4: Appraisal

Expert Appraisal Committees (EAC) or State Level Expert Appraisal Committees (SEAC) are mandated to conclude assessments and provide recommendations within a 60-day timeframe. The regulatory authority is then required to communicate its decision within 45 days of receiving the recommendations from either the EAC or SEAC, making the entire process last no longer than 105 days from the final Environmental Impact Assessment (EIA) report.

In the case of projects falling under the category of B-2, not necessitating a full EIA, the final decision is to be completed within 105 days of receiving the complete application.

The duration of the granted environmental clearance varies:

·       For mining projects, the clearance is valid for the project's estimated life, as determined by the EAC or SEAC, up to a maximum of 30 years

·       Ten years for river valley projects

·       Five years for all other projects and activities

Renewal- required

 2) Consent to Establish and Operate

In accordance with the Water (Prevention & Control of Pollution) Act, 1974, and the Air (Prevention & Control of Pollution) Act, 1981, any industry, operation, or process likely to discharge sewerage or trade effluent into the environment or emit air pollution into the atmosphere must obtain consent. There are two essential types of consent: Consent to Establish (CTE) and Consent to Operate (CTO).

 A. Consent to Establish (CTE):

·       Required prior to establishing any industry, plant, or process.

·       Serves as the primary clearance for initiating a new project.

  B. Consent to Operate (CTO):

·       Obtained after ensuring the implementation of mandatory pollution control systems.

·       Necessary once the industry, plant, or process is established.

PROCEDURE FOR CONSENT ACQUISITION

The consent management process classifies industrial sectors/projects into Red, Orange, Green, and White categories based on pollution potential and pollution index. The procedure involves:

4.     Application Submission:

·       Submit an application to the State Pollution Control Board through the online portal.(different for every state)

·       Include required documents and scrutiny fees.

5.     Scrutiny Process:

·       Physical scrutiny of the location and assessment of the environmental management system planned to meet mandatory requirements.

REQUIRED DOCUMENTS FOR CONSENT UNDER WATER ACT, 1974, AND AIR ACT, 1981

Consent to Establish:

·       Site Plan/Location Plan.

·       Detailed Project Report (raw material details, product specifications, capital cost, water-balance, water source details).

·       DGTD Registration (if applicable)

·       Land documents (Registration deed/Rent deed/Lease deed).

·       Details of Pollution Control instruments.

·       MOA/Partnership Deed.

·       NOC from Directorate of Industries Government

Consent to Operate:

·       Copy of the last consent.

·       Layout plan detailing all manufacturing processes.

·       Process flow sheet.

·       Latest analysis report of waste and emissions.

·       Attested balance sheet or CA certificate.

·       Details of land if effluent is discharged on land for percolation.

·       DGTD Registration. (if applicable )

·       Occupation certificate for building/construction projects.

VALIDITY AND RENEWAL

·       Consent to Establish: Typically issued for 3 to 5 years, extendable upon application.

·       Consent to Operate: Valid for 5, 10, and 15 years based on the industry's categorization (red, orange, green).

·       Renewal is possible upon application, ensuring continued compliance with environmental regulation

Penalty For Contravention-

Failure to obtain the required consent order may result in severe penalties under Section 43 of the Water (Prevention & Control) Act. According to this section, any person who violates the consent application process is subject to legal consequences. Specifically:

·       First Offense: Imprisonment for a term not less than one year and six months, but extendable to six years and Fine.

·       Subsequent Offenses: If a person, after being convicted, is found guilty of a subsequent offense involving a contravention of the same provision he may get Imprisonment for a term not less than two years, extendable to seven years and Fine.

Similarly, As per Section 37 of the Air Act, any person failing to comply with the provisions is subject to specific penalties:

·       First Offense: Imprisonment for a term not less than one year and six months, extendable to six years and Fine.

·       Continued Failure: In case the failure persists, an additional fine may be imposed, which could extend to five thousand rupees for each day the failure continues after the conviction for the initial offense.

·       Failure Continuing Beyond One Year After Conviction: If the failure persists beyond a period of one year after the date of conviction for the initial offense: Imprisonment for a term not less than two years, extendable to seven years and Fine.

Other Licenses required- Water Pollution Control State License, Air pollution Control State License, Environment protection Insurance, Green building certification, Renewable Energy Certificates.