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Revised Classification of Industries

17 May 2025
3 min

Why in the News?

Central Pollution Control Board (CPCB) has directed State Pollution Control Boards (SPCBs) to adopt a revised classification of industries

More on the News

  • Revised classification aims to create a clean & transparent working environment and promote the Ease of Doing Business.
  • In the new revised classification, CPCB has classified a total of 419 sectors into Red (125), Orange (137), Green (94), White (54) and Blue (9) category.
    • Blue category has been newly introduced. 
  • CPCB has followed a revised methodology based on Pollution Index (PI). 
  •  Also, CPCB will incentivize industries which have demonstrated the successful implementation of environmental management measures.
    • E.g., Consent to Operate (CTO) for Red Category may be granted for the validity of max. 10 years.

Classification of Industries

  • Background: It originated in 1989 with the Doon Valley (Uttarakhand) Notification issued by the Union Ministry of Environment, Forest and Climate Change (MoEFCC).
    • Classification based on PI was introduced in 2016. 
  • Purpose: To ensure that the industry is established in a manner which is consistent with the environmental objectives.
    • The classification is for entire industrial sectors and not for individual units.
  • Usage/Relevance of classification: 
    • Siting criteria: Used as a tool for deciding the location/siting of an industry.
    • Development of cluster: Used for planning of sector specific cluster.
    • Sector specific plans for pollution control: Plans for control of pollution may be prepared and implemented on priority for the sectors.
    • Inspection frequency: SPCBs/PCCs may prioritize environmental surveillance programs based on the categories of sectors.
    • A tool for progressive environmental management: Industrial units may adopt cleaner technologies, cleaner fuels, etc., to reduce PI, thus, moving to lower pollution potential category.

Existing Categories of Sectors

Category

PI 

Key detail /Examples 

Red

PI> 80

  • No Red category of industries shall normally be permitted in the ecologically fragile area / protected area.
  • E.g. Cement, manufacturing of automobiles, distilleries, etc.

Orange

55 ≤ PI < 80

  • E.g. Brick manufacturing, dry cell battery, coal washeries, etc.

Green

25 ≤ PI < 55

  • E.g. Manufacturing of Compact disc Computer (CD/DVD), chilling plants, etc.

White

PI < 25

  • These are non-polluting; do not require Environmental Clearance (EC) and Consent. 
  • E.g. Assembly of air coolers, cardboard manufacturing, medical oxygen, etc.

Note: For any new or left-out sector, the SPCB/ Pollution Control Committees (PCCs) are allowed to categorize the sector at its own level.

About Blue Category

  • It includes Essential Environmental Services (ESSs) for management of waste generated from domestic/ household activities. 
    • ESSs are those facilities which are essential to control, abate and mitigate pollution generated from Domestic and Industrial activities.
  • Examples: Municipal Solid Waste Management Facility (Sanitary landfill/ Integrated Sanitary landfills, etc.) sewage treatment plants, etc.
    • Compressed Biogas Plants (CBP) based on various feedstock like municipal solid waste, agro-residue, etc. may be considered under blue category. 
      • CBG plants based on industrial or process waste will continue to be in red category.
  • Need of introducing Blue Category: It will foster waste management practices.
    • Consent to Operate (CTO) validity of this category sectors will be 2 years more than the other category.

Conclusion

The CPCB's revised classification of industries, including the introduction of the Blue category, reflects a progressive shift towards environmentally responsible industrial regulation.

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