MoEFCC Streamlines Rules to Fast-Track Common Effluent Treatment Plants

The Ministry noted that the existing number and capacity of CETPs fall well short of what is required to handle effluents from rapidly expanding industrial clusters.

In a major reform aimed at strengthening pollution control infrastructure while supporting sustainable industrial growth, the Ministry of Environment, Forest and Climate Change (MoEFCC) has rationalised the regulatory framework for Common Effluent Treatment Plants (CETPs). The move is designed to accelerate the establishment of CETPs across industrial clusters, without diluting environmental safeguards or regulatory oversight.

CETPs are shared pollution abatement facilities that treat industrial effluents generated by clusters of industries—particularly small and medium enterprises that may lack the technical or financial capacity to install individual treatment systems. By enabling centralised, scientific treatment and continuous monitoring, CETPs play a critical role in preventing industrial pollution and protecting water bodies. Recognising this, the Central Pollution Control Board (CPCB) has categorised CETPs as Essential Environmental Services under the Blue Category of Industries, which are to be actively promoted for environmental protection.

Why the Reform Was Needed

The Ministry noted that the existing number and capacity of CETPs fall well short of what is required to handle effluents from rapidly expanding industrial clusters. Procedural delays in setting up CETPs have often resulted in untreated or partially treated effluents entering the environment.

Following a detailed review by expert committees, MoEFCC observed that CETPs are already comprehensively regulated under existing pollution control laws through Consent to Establish (CTE), Consent to Operate (CTO), regular inspections, continuous online monitoring and statutory reporting. In this context, the additional requirement of prior Environmental Clearance under the EIA Notification, 2006 was found to be duplicative, causing avoidable delays without adding meaningful environmental protection.

Accordingly, the Ministry has exempted CETPs from the requirement of prior Environmental Clearance, subject to strict compliance with environmental safeguards, Uniform Consent Guidelines, and the Environmental (Protection) Rules governing CETPs, which came into force on 1 September 2025.

Stronger Oversight Through Decentralised Regulation

Under the revised framework, CETPs will continue to be stringently regulated by State Pollution Control Boards (SPCBs) and Pollution Control Committees (PCCs) under the Water Act, 1974 and the Air Act, 1981.

Enhanced safeguards include:

• Mandatory conveyance of industrial effluents only through closed pipeline systems

• Prohibition on use of treated effluents for agricultural purposes

• Continuous online monitoring with real-time data connectivity to CPCB and SPCB servers

These measures ensure full traceability, prevent illegal discharge and enable round-the-clock regulatory supervision, safeguarding both the environment and public health.

Consultative, Expert-Led Decision

The reform follows a transparent and consultative process. A draft notification was placed in the public domain for 60 days, and stakeholder feedback was carefully examined before finalisation. The revised provisions will apply prospectively, ensuring regulatory certainty.

Environmental and Economic Gains

By enabling faster establishment of CETPs, the reform is expected to significantly enhance effluent treatment capacity, improve compliance among industrial clusters and promote water conservation through controlled industrial reuse. Centralised treatment will also allow more professional operation and effective monitoring, leading to improved environmental outcomes.

Through this step, the Government has reaffirmed its commitment to sustainable development, proportional regulation and zero tolerance for environmental non-compliance, while ensuring that regulatory processes remain efficient, risk-based and outcome-oriented.