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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Environment

Meghdoot Chemicals Ltd plans to set up a new plant in Gujarat that discharges effluents into a river. Before starting operations, the company wants to know which statutory body's consent is needed to discharge trade effluent. Which approach is correct under the Water (Prevention and Control of Pollution) Act, 1974?

The company must obtain consent to establish and consent to operate from the State Pollution Control Board. The Water Act places the consent regime with the Board, so corporate or securities regulators and CSR policies cannot replace it for discharging trade effluent.

  1. AObtain consent to establish and consent to operate from the State Pollution Control BoardCorrect
  2. BObtain consent only from the Registrar of Companies
  3. CObtain approval only from the Securities and Exchange Board of India
  4. DNo consent is needed if the company has a CSR policy

Explanation

Under the Water Act, an industry discharging effluent into a stream must obtain the State Pollution Control Board's consent, both to establish and to operate. The RoC and SEBI have no role in granting pollution consents, and a CSR policy does not substitute for statutory consent.

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