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The Union environment ministry has begun work to ensure greater self-certification and self-regulation by industries. It has also asked state governments to do away with their licensing powers under environmental laws. These changes, the ministry said, were being sought under the National Democratic Alliance government’s plans to provide ‘ease of doing business’ to industry.
In an advisory to all states, issued on December 23, the ministry said industries should not require mandatory consent-to-establish (CTE) certificates from state pollution control boards for power connections.
In another order, passed on December 31, it tasked a committee with drafting rules to allow industries to self-certify and self-regulate their environmental performance, against the practice of industries being subjected to inspection and scrutiny by state environmental authorities.
Under the water and air Acts, it is mandatory for industries to obtain a CTE certificate from the state pollution control board (SPCB) concerned by submitting a form, along with the requisite documents and fees. This is also applicable in case of expansion of output or any technological change and is valid for a particular time limit. Without this certificate, industries cannot secure a power connection.
At the same time, SPCBs are empowered to carry out inspections and scrutiny of the workings of these industries. These bodies prosecute industries found violating environmental laws.
Now, the ministry has issued a clarification stating a CTE certificate isn’t mandatory in every state, while in other states (where it is compulsory), the provision might be done away with, as these aren’t the directives of the Central Pollution Control Board (CPCB). In such cases, the government can only give advisories, as water and air fall under the state list.
The Centre’s advisory reads: “As a result (of the provision), establishment of coming projects and overall industrial development in the state concerned is adversely affected…Since in some states, the pre-requisite of CTE certificate for release of electricity connection doesn’t exist, other states might consider revisiting their provisions in this regard for improving ‘ease of doing business’ in the state.”
“This is shocking, to say the least, as the CPCB seem to be concerned not with its duty of reducing pollution but ‘ease of doing business’. If an industry does not have a CTE, why should it be given an industrial electricity connection?” asked prominent environment lawyer Ritwick Dutta.
On condition of anonymity, a senior bureaucrat said, “A CTE is used to ensure the site of industry is right. A state wouldn’t want to let a polluting plant come up behind, say, a school. In such a case, it won’t give a CTE. De-linking the CTE from the provision of electricity connection makes the certsificate redundant.”
Industry has often complained consent certificates under the air and water Acts have led to a maze of licences at the state level.
Meeting another long-standing industry demand, the central government has also tasked a committee to develop norms through which industries will be able to self-certify and self-regulate their environmental impacts. A working group of pollution control board members have been asked to finalise a report on the matter by this month. The group will come up with norms through which inspection activities of state authorities will be replaced by ‘third-party audits and inspections’. It will also review the frequency with which these inspections are carried out. It has been asked to consider higher penalties against industries providing wrong information through the self-certification regime.
The group will also look at the categorisation of industries, based on their pollution loads.
Under the United Progressive Alliance government, a working group was formed to look into the revision of pollution categories, along with other issues. However, it had failed to give a report on the matter on time. Now, the government has altered its mandate, asking it to finalise its report by this month.
The office memorandum on the matter “says the ministry has been “reviewing the issues relating to granting of various clearances to industries and developmental projects with the purpose for improving ‘ease of doing business’.”
Many of these changes were recommended by the T S R Subramanian committee, which had recently reviewed six environmental laws. The panel had sought state controls based on environmental regulations be done away with, adding this be done through a new law. As the new orders show, the Centre has decided to do so through executive orders that help it bypass legislative amendments, or the passage of a new law.
