Feeling the green pinch

Small firms find environmental compliance a tough call.

The need for Indian micro, small, medium enterprises (MSME) sector to become compliant with environmental standards is beginning to pinch the industry.

A recent World Bank report said that India's 4.5 million MSMEs contribute 40 per cent of industrial production but create 70 per cent of industrial pollution. The report, further stated that most of the initiatives towards attaining environmental compliance within Indian industry do not cover MSMEs.

Host of initiatives to this effect is being taken by the MSME ministry, ministry of environment and the industry at large, to cope with these environmental concerns.

The Confederation of Indian Industry (CII) has joined hands with the ministry of environment and the Central Pollution Control Board to promote higher environmental standards amongst the MSME sector. It has also entered into an agreement with United Nations Industrial Development Organisation to take up a consolidated project for MSME development in India.

"The CII-UNIDO Development Project will promote direct foreign investment and industrial co-operation agreements, fostering investment and partnership of selected target market countries towards the MSMEs," Sarita Nagpal, deputy director general, CII said.

The project will also facilitate and promote investment, development through cluster approach, equity financing, technology and subcontracting partnerships between MSMEs and international potential partners. The project will further upgrade and strengthen the existing capabilities and capacities of Indian MSMEs through cluster twinning strategy.

According to the ministry of MSME, only 19 MSMEs have received ISO 14001 certification for environment standards so far. The MSME ministry has already partnered Petroleum Conservation and Research Association (PCRA) to conduct energy audits of MSMEs for next five years.

ISO "� 14001 is a certification for adoption of Environmental Management System developed by the International Standards Organisation (ISO). It is a voluntary standard.

The Ministry of small and medium industry has also asked CII to assist t in training of consultants for 10,000 lean manufacturing MSME units in India, Jawhar Sircar, additional secretary & development commissioner, Ministry of MSME, said.

B Sengupta, member secretary, Central Pollution Control Board (CPCB) said that CPCB has initiated Corporate Responsibility and Environment Protection (CREP), which focuses on environment protection measures of MSMEs.

On the measures to deal with the environmental challenges, Sengupta said: "Pollution prevention technology, especially air pollution in small industry and waste recycling through common effluent plant are being promoted by CPCB. Hazard Based Management and Pollution Prevention Management should be set up on Public-Private partnership mode to implement pollution prevention initiatives in MSMEs."