In a major policy shift aimed at “rationalising” environmental compliance for industries, the Union environment ministry has reduced the mandatory common green cover requirement for industrial estates from 33% to 10%. The move, part of the government’s ongoing effort to balance industrial land availability with environmental safeguards, marks a significant relaxation of norms that have been in place since 2020.
The revised guidelines, according to officials familiar with the matter, introduce a differentiated green cover mandatebased on the pollution potential of individual industries. This means that while every industrial estate must now maintain at least 10% of its area as common green space, additional plantation responsibilities will vary depending on whether industries are classified as Red, Orange, Green, or White categories under India’s pollution control framework.
New Framework: Reduced Common Mandate, Category-Based Differentiation
Under the new rules, industrial estates—which include parks, complexes, Special Economic Zones (SEZs), and export processing zones—will be required to allocate a minimum of 10% of their total land area for common green cover. This green area must feature dense plantation at a rate of 2,500 trees per hectare, developed by the estate developer or owner.
The green area may be concentrated in one zone or distributed across multiple sites within the estate, as long as the locations are clearly demarcated and maintained.
Beyond the estate-level mandate, individual industrial units will now be responsible for maintaining category-specific green belts within their own premises:
- Red Category (Most Polluting): Must maintain 15% green area within the premises.
- Orange Category (Moderately Polluting): Must maintain 10% green area within the premises.
- Green and White Categories (Low/Non-Polluting): No mandatory requirement; maintaining greenery is optional.
This restructured framework effectively decentralizes the responsibility for maintaining environmental buffers, linking the extent of greenery to the degree of pollution risk associated with each industrial activity.
Impact: Significant Reduction in Overall Green Cover
The previous 2020 guidelines, issued through an office memorandum on October 27, 2020, mandated that all industrial estates maintain at least 33% green cover across the entire project area. This included both common areas managed by estate authorities and individual plots managed by industrial units.
Under the new model, while estates with heavily polluting industries (Red category) will still maintain substantial vegetation—combining the 10% common area and 15% within-unit requirement—estates with mostly Green or White category units could see their total green cover drop well below the 33% benchmark.
For example, a technology park or light manufacturing estate dominated by non-polluting industries could now legally operate with as little as 10% greenery, a sharp decline from previous standards.
Standalone Industrial Units: Stricter Norms Based on Pollution Levels
The revised norms also apply to standalone industrial units located outside designated estates, introducing a more complex, tiered system based on pollution potential and type of emissions.
- Red Category (high air pollution potential): Must maintain 25% green belt within the premises.
- Other Red Category units: Must maintain 20% green area.
- Orange Category industries: Must maintain between 15–20% green cover, depending on their air pollution scores.
- Green Category industries (high air pollution potential): Require 10% green area.
- White Category industries: No mandatory green cover requirement.
This differentiation aims to tailor environmental compliance to the specific risk profile of industrial operations rather than imposing uniform mandates across sectors.
Government’s Rationale: Balancing Growth with Sustainability
Officials from the environment ministry have justified the decision as a measure to “rationalise and optimize” land use within industrial estates. The government argues that the earlier 33% uniform green cover rule did not take into account differences in pollution intensity, land use efficiency, and regional industrial patterns.
According to a senior official, “The 33% rule was difficult to implement, especially in land-scarce industrial corridors. The revised approach ensures that greener responsibility falls on those who pollute more while freeing up space for industries with minimal environmental impact.”
The move is aligned with the Centre’s broader policy push to streamline environmental clearances and promote ease of doing business as part of India’s ambition to become a global manufacturing hub under initiatives like ‘Make in India’and ‘Atmanirbhar Bharat’.
Industry’s Response: Relief Over Compliance Burden
Industry associations have largely welcomed the revision, saying that the earlier 33% requirement had been “impractical and economically burdensome.”
Developers of industrial parks and export zones have long argued that dedicating one-third of available land to green belts significantly reduced usable space for factories, warehouses, and infrastructure, often making industrial projects financially unviable.
“The 33% green cover rule was excessive and did not consider pollution categories or land economics. The new framework provides flexibility and reflects a more realistic balance between industrial expansion and environmental responsibility,” said a representative from the Confederation of Indian Industry (CII).
However, while industries have welcomed the relaxation, environmental experts have expressed reservations about its potential impact.
Environmental Concerns: Fear of Diminished Air Quality and Ecological Impact
Environmental groups and independent experts have cautioned that reducing green buffer zones could have long-term consequences for air quality and public health, particularly in densely industrialized regions.
A green belt serves as a natural barrier, absorbing dust and gaseous pollutants, moderating local temperatures, and providing ecological balance within industrial ecosystems. Shrinking this buffer, experts warn, could worsen air pollution and increase vulnerability for nearby communities.
An environmental researcher noted, “While differentiation by pollution category makes sense, bringing the baseline down to 10% could significantly erode urban and peri-urban green lungs. Industrial emissions, even from moderate polluters, contribute to local air degradation. The timing is particularly concerning given India’s ongoing air pollution crisis.”
Questions have also been raised about whether scientific assessments or environmental impact studies were conducted to justify the reduced green cover percentages. The ministry has not yet clarified the research or modeling behind the revised figures.
Historical Context: The 2020 Mandate
The 33% green cover requirement, introduced in 2020, was designed to ensure that all industrial estates, parks, Special Economic Zones, biotech parks, and leather complexes maintained a substantial ecological buffer.
That policy had also allowed estates to distribute responsibility—partly among developers and partly among individual units—so long as the overall target of one-third green area was achieved.
Environmentalists had hailed the 2020 guidelines as an important step toward aligning industrial development with India’s climate and air quality goals. The reduction now, they say, represents a policy rollback that prioritizes industrial convenience over ecological resilience.
Balancing Development and Ecology
The policy shift comes at a time when India is struggling with severe air pollution, especially across the Indo-Gangetic plains, where industrial emissions, vehicular pollution, and biomass burning combine to create hazardous air conditions each winter.
Critics argue that rather than weakening existing green cover mandates, the government should focus on enforcing compliance and ensuring effective plantation and maintenance in designated green zones.
Nonetheless, the ministry maintains that the new approach represents a “balanced and pragmatic framework.” It emphasizes that high-pollution industries will still be held to stricter standards, while less harmful sectors are not overburdened by land-use restrictions.
Conclusion: A Controversial Trade-Off
The reduction of the mandatory green cover from 33% to 10% reflects the government’s broader effort to simplify industrial regulations and accelerate manufacturing growth. But it also raises pressing questions about environmental governance, scientific validation, and long-term sustainability.
While industry players have hailed the move as a step toward greater efficiency and competitiveness, environmental advocates warn that the loss of green buffers could compromise public health and environmental integrity, especially in pollution-prone regions.
As India seeks to balance industrial ambition with ecological responsibility, the new policy underscores an enduring tension at the heart of development—how to grow faster without turning green commitments into mere tokenism.
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