UP Pollution Fee Hike: Industries To Pay 3 Times More For NOC; Cabinet Approves New Rates After 17 Years

UP Pollution Fee Hike: Industries To Pay 3 Times More For NOC; Cabinet Approves New Rates After 17 Years

Industries will now have to spend significantly more to obtain pollution No Objection Certificates (NOCs) and consent letters. The state government has decided to increase these fees by 2.5 to 3 times based on the category of the industry. Industries classified under the 'Red' category will have to pay the highest fees, while those in the 'Green' category will pay the lowest.

Cabinet Approval

The proposal to hike the fees was approved during a Cabinet meeting held on Tuesday, presided over by Chief Minister Yogi Adityanath. This increase comes after a gap of 17 years, with the last revision having taken place in 2008.

Impact On Annual Costs

Industries will face the financial impact of this decision every year. Previously, after paying the initial fee, industries were required to pay only half that amount as an annual renewal fee. However, they must now pay a renewal fee equal to the initial amount every year. Additionally, permission has been granted to increase the fees by up to 10 per cent every two years.

Legislative Amendments

On Tuesday, the Cabinet approved the Uttar Pradesh Water (Consent for Discharge of Sewage and Trade Effluents) (Third Amendment) Rules and the Uttar Pradesh Air (Prevention and Control of Pollution) (Fourth Amendment) Rules to modify the consent fee structure. With this decision, the fees for establishing and operating purification plants for industries, local bodies, and other units will rise.

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Categorisation And Rationale

Following the amendments, different NOC fees will apply to industries based on Red, Orange, and Green classifications. Since Red category industries generate the most pollution, their fees will be the highest. Orange category industries will pay less, and Green category industries, which cause the least pollution, will pay the minimum fee. The government believes this decision will strengthen the Pollution Control Board's financial position, allowing for the expansion of manpower and technical capabilities needed for effective monitoring.

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Single Slab For Large Industries

The state government has restructured the investment-based slabs, reducing them from 12 to 7. Industries with investments exceeding Rs 1,000 crore will now fall under a single slab instead of three.

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Previous Rates: Earlier, industries with investments between Rs 1,000 crore and Rs 5,000 crore paid an initial fee of Rs 2.50 lakh and a renewal fee of Rs 1.25 lakh. Those between Rs 5,000 crore and Rs 10,000 crore paid Rs 5 lakh initially and Rs 2.50 lakh annually. Industries above Rs 10,000 crore paid Rs 10 lakh in the first year and Rs 5 lakh thereafter.

New Rates: Merging these categories, a single bracket has been created for industries investing over Rs 1,000 crore. Under this, Green category industries will pay Rs 5 lakh, Orange industries Rs 5.75 lakh, and Red category industries will pay Rs 6.50 lakh per year.

Additionally, the four slabs for industries with investments of less than Rs 1 crore have been consolidated into a single slab.

No objection And Consent Fee For Category Wise Industries

capital investments Current charges New Fee (in Rs.)
  initial charge Annual renewal fee Green orange Red
One thousand crore to five thousand crore 2.50 lakh 1.25 lakh 5 lakh 5.75 lakh 6.50 lakh
500 crore to 1000 crore 1.50 lakh 75 thousand 1.50 lakh 1.72 lakh 1.95 lakh
250 crore to 500 crore 1 lakh 50 thousand 1 lakh 1.15 lakh 1.30 lakh
50 crore to 250 crore 75 thousand to one lakh 35 thousand to 50 thousand 75 thousand 86 thousand 97 thousand
10 crore to 50 crore 50 thousand 25 thousand 50 thousand 58 thousand 65 thousand
One crore to 10 crore 20 thousand 10 thousand 20 thousand 23 thousand 26 thousand
less than one crore up to three thousand Up to 1500 five thousand 7500 10 thousand
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