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| Last Updated:: 01/04/2016

Color-coded categorization: Government releases list of industries


Color-coded categorization: Government releases list of industries



The government, after re-categorizing, has come up with a list of industries that would now be classified as red, orange or green, and the different rules that they would be subjected to.

Re-categorization and its purpose:

§  Re-categorization of industries based on their pollution load is a scientific exercise. The old system of categorization was creating problems for many industries and was not reflecting the pollution of the industries. The new categories will remove this lacuna and will give clear picture to everyone.

§  The purpose of the categorization is to ensure that the industry is established in a manner which is consistent with the environmental objectives.

§  The new criteria will prompt industrial sectors willing to adopt cleaner technologies, ultimately resulting in generation of fewer pollutants.

§  Another feature of the new categorization system lies in facilitating self-assessment by industries as the subjectivity of earlier assessment has been eliminated.

§  This ‘Re-categorization’ is a part of the efforts, policies and objective of present government to create a clean & transparent working environment in the country and promote the Ease of Doing Business.


What Is new?

A new category, white, has been added to include the industries that are “practically non-polluting”. These industries, like air cooler or air conditioning units, chalk factories, biscuit tray units, won’t need a green clearance enabling easier financing.

Other categories:

§  Red category: Includes Cement industry, Petrochemicals, pharmaceuticals, sugar, paper and pulp, nuclear power plants, organic chemicals, fertilizers, fire crackers.

§  Orange category: Includes coal washeries, glass manufacturing, paints, stone crushers, and aluminium and copper extraction from scrap.

§  Green category: Includes aluminium utensils, steel furniture, soap manufacturing and tea processing. 

The categorisation is based on a pollution index developed by the environment ministry taking into account the emissions, effluents, and hazardous waste generated, and the resources it consumes. Industries scoring 60 and above on a scale of 1 to 100 have been rated red. An index between 41 and 59 earns an orange category, while a score between 21 and 39 gets a green. Pollution index lower than 20 have been rated white.