In a move aimed at strengthening pollution control infrastructure while supporting sustainable industrial growth, the Ministry of Environment, Forest and Climate Change has rationalised the regulatory framework governing Common Effluent Treatment Plants. The reform is intended to accelerate the establishment of CETPs across industrial clusters, while ensuring that environmental safeguards and regulatory oversight remain robust. CETPs are shared pollution abatement facilities that treat industrial effluents generated by clusters of industries, particularly small and medium enterprises that may lack the technical or financial capacity to install individual treatment systems. These facilities enable centralised treatment, scientific effluent management and effective monitoring, and are not themselves sources of pollution. The Central Pollution Control Board has classified CETPs as essential environmental services under the Blue Category of industries, recognising their role in environmental protection. The need for reform arose from the growing gap between the number and capacity of CETPs in operation and the volume of effluents generated by expanding industrial clusters. Delays in setting up these facilities have often resulted in untreated or inadequately treated effluents being discharged into the environment. Following a detailed review by the ministry’s expert committees, it was observed that CETPs are already subject to extensive regulation under existing pollution control laws. These include requirements for consent to establish and consent to operate, periodic inspections, continuous online monitoring and statutory reporting. In this context, the requirement for prior environmental clearance was found to be duplicative, adding procedural complexity and avoidable delays without commensurate environmental benefits. Accordingly, the ministry has exempted CETPs from the requirement of prior environmental clearance, subject to strict implementation of environmental safeguards and compliance with Uniform Consent Guidelines and the Environmental (Protection) Rules governing CETP standards, management and operations, which came into force on September 1, 2025. The reform is expected to enable faster creation of CETPs, thereby improving regulatory compliance and environmental outcomes. Under the revised framework, CETPs will continue to be stringently regulated by State Pollution Control Boards and Pollution Control Committees under the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981. Additional safeguards include mandatory conveyance of effluents through closed pipeline systems, a ban on the use of treated effluents for agricultural purposes, and continuous online monitoring with real-time data connectivity to CPCB and state board servers. These measures are designed to ensure traceability, prevent illegal discharge and enable continuous regulatory oversight. The decision followed an expert-led and consultative process. A draft notification was placed in the public domain for 60 days, during which stakeholder feedback was invited and carefully examined before finalisation. The revised provisions will apply prospectively. By facilitating quicker establishment of CETPs, the reform is expected to enhance treatment capacity, improve compliance within industrial clusters and promote water conservation through controlled industrial reuse of treated effluents. Centralised treatment is also expected to support more professional operations and more effective monitoring. Through this initiative, the government has reiterated its commitment to sustainable development, proportionate regulation and zero tolerance for environmental non-compliance, while ensuring that regulatory processes remain efficient, risk-based and outcome-oriented.