In a move set to transform how small and medium green industries operate in Delhi, the city government has announced a sweeping reform slashing the approval time for Consent to Operate (CTO) from 120 days to just 20 days. This policy shift, hailed as “historic” by officials, is expected to bring relief to over 65 categories of low-pollution industries, freeing them from bureaucratic delays and encouraging investment in the capital’s non-polluting sectors.
A Long-Awaited Reform for Green Industries
On Monday, Delhi’s Environment and Industries Minister Manjinder Singh Sirsa announced the new timeline, calling it a long-overdue step that would eliminate procedural bottlenecks that have plagued industries for decades. “This is a long-awaited change. We’ve done what could not be done in the last 50 years,” Sirsa said at a press conference, expressing gratitude to Lieutenant Governor Vinai Kumar Saxena and Chief Minister Rekha Gupta for supporting the move.
Under the reform, industries that fall under the Green Category—such as apparel manufacturing, cold storage units, ayurvedic medicine production (without boilers), furniture, packaging, toys, and aluminium product manufacturing—will see their CTO applications processed within 20 days. If the Delhi Pollution Control Committee (DPCC) fails to respond within this period, approvals will be automatically granted without the need for additional documentation or follow-ups.
The policy, set to take effect in August 2025, aims to transform the operating landscape for non-polluting industries, many of which are led by micro, small, and medium enterprises (MSMEs) that have long struggled with bureaucratic hurdles in securing operating permissions.
“This is the end of the old License Raj mentality,” Sirsa declared. “We are shifting to a trust-based, time-bound model that gives businesses the confidence to invest and expand.”
Boosting Ease of Doing Business in Delhi
The fast-track CTO clearance is part of a broader strategy by the Delhi government to improve the ease of doing business in the capital. A Single Window System is being rolled out across departments to integrate various approvals, further reducing manual intervention and paperwork for businesses.
Industry representatives have welcomed the reform, acknowledging it as a critical enabler for businesses looking to expand or start operations in the capital. However, stakeholders have also emphasised that effective implementation will be crucial to ensure the promised efficiency materialises on the ground when the new system goes live.
The reform aligns with the central government’s ongoing push for improving India’s Ease of Doing Business rankings and is being positioned by the BJP-led Delhi administration as part of its commitment to creating a business-friendly environment, particularly for the MSME sector that forms the backbone of India’s manufacturing and services industries.
Currently, India’s capital has witnessed significant interest in non-polluting industries, but procedural delays often discourage investment. By implementing a deadline-driven clearance system, the Delhi government hopes to instil confidence in entrepreneurs and attract fresh investments while maintaining environmental safeguards for low-pollution sectors.
As Delhi prepares to implement this reform, businesses are hopeful that the system will function as promised, reducing the months-long delays that often hold back new and existing green industries. For small business owners caught in a maze of approvals, this policy could be the breakthrough they have long awaited, providing an opportunity to grow without being tied down by red tape in a city eager to showcase its commitment to green industrial development.
