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CETP Reforms: Speeding Up Cleaner Industry

• By  Textile Excellence
• February 15, 2026

In a major move to strengthen pollution control and promote sustainable industrial growth, the Ministry of Environment, Forest and Climate Change (MoEFCC) has overhauled the regulatory framework for Common Effluent Treatment Plants (CETPs). The reform aims to speed up the creation of CETPs across industrial clusters while keeping environmental safeguards and oversight intact.

CETPs are centralised facilities that treat effluents from groups of industries, particularly small and medium enterprises that cannot afford individual treatment systems. They ensure scientific management, efficient monitoring, and safe disposal of industrial waste. The Central Pollution Control Board (CPCB) has classified CETPs as Essential Environmental Services, highlighting their critical role in pollution abatement.

Why reform was needed

Currently, the number and capacity of CETPs fall short of what industrial clusters require. Delays in establishing CETPs often result in untreated or poorly treated effluents polluting rivers and groundwater. After detailed reviews, the Ministry found that CETPs were already heavily regulated through Consent to Establish (CTE) and Consent to Operate (CTO), periodic inspections, and online monitoring. Requiring prior Environmental Clearance was duplicative and caused unnecessary delays.

The reform exempts CETPs from prior Environmental Clearance, provided they implement safeguards and follow Uniform Consent Guidelines and Environmental Protection Rules (effective September 2025). This change allows faster creation of CETPs, boosting compliance and improving environmental outcomes.

Stringent oversight remains

CETPs will still be regulated by State Pollution Control Boards (SPCBs) and Pollution Control Committees under the Water and Air Pollution Acts. New safeguards include:

• Conveying effluents only through closed pipelines
• Prohibiting the use of treated water for agriculture
• Continuous online monitoring with real-time data for CPCB and SPCB

These measures ensure traceability, prevent illegal discharge, and protect public health and the environment.

Benefits for industry

Faster CETP establishment improves treatment capacity and compliance. It also enables reuse of treated water, lowering freshwater costs for industrial clusters. Centralised treatment and professional operation lead to more efficient and sustainable industrial practices.

By removing bottlenecks without compromising safeguards, the reform strengthens pollution control infrastructure, aligns with India’s sustainability goals, and positions industrial clusters, especially textile and SME-heavy regions, for responsible, compliant, and efficient growth.

Faster CETP establishment improves treatment capacity and compliance. It also enables reuse of treated water, lowering freshwater costs for industrial clusters. Centralised treatment and professional operation lead to more efficient and sustainable industrial practices.