But before you start machines and production, you must take permission from the government. This permission is called Consent for Establishment.
What is Consent for Establishment (CFE)?
Consent for Establishment (CFE) is a legal permission given by the State Pollution Control Board (SPCB) before you start building your factory.
In India, pollution is controlled under the Central Pollution Control Board and different State Pollution Control Boards.
Think of it like this:
If you want to build a house, you need approval from local authorities.
Similarly, if you want to build a factory, you need Consent for Establishment from the Pollution Control Board.
It makes sure that your factory:
- Does not harm air
- Does not pollute water
- Does not damage the environment
Why is Consent for Establishment Important?
Consent for Establishment is important because:
- It protects the environment
- It protects public health
- It ensures safe industrial development
- It prevents legal penalties
- It builds trust for your business
Without CFE, your factory can be sealed or fined.
Who Needs Consent for Establishment?
Almost all industries need CFE before starting construction.
For example:
- Electrical equipment manufacturing Set Up
- Plastic manufacturing units
- Chemical industries
- Oil and lubricant businesses
- Food processing units
- Scrap recycling units
Even small and medium industries must apply.
Consent for Establishment for Electrical Equipment Manufacturing Set Up
If you are planning an Electrical equipment manufacturing Set Up, you will need CFE because:
- It may create noise pollution
- It may generate hazardous waste
- It may involve metal cutting and chemical processes
The Pollution Control Board will check:
- Factory location
- Power load
- Waste disposal system
- Air pollution control system
If everything is safe, they grant Consent for Establishment.
Step-by-Step Process of Consent for Establishment in India
Let’s understand the process in simple steps:
Step 1: Check Industry Category
Industries are divided into 4 categories:
- Red (High Pollution)
- Orange (Medium Pollution)
- Green (Low Pollution)
- White (Very Low Pollution)
Electrical manufacturing usually falls under Orange or Red category.
Step 2: Prepare Required Documents
You must collect all documents before applying.
Step 3: Online Application
Most states allow online application on the State Pollution Control Board website.
You must:
- Fill application form
- Upload documents
- Pay government fees
Step 4: Site Inspection
The Pollution Control Officer may visit your site to check:
- Land location
- Nearby residential area
- Proposed pollution control measures
Step 5: Approval or Clarification
If everything is correct → Approval granted.
If something is missing → They ask for clarification.
Documents Required for Consent for Establishment
Here is a simple list:
- Company PAN card
- Aadhaar of directors
- Project report
- Land ownership documents
- Layout plan of factory
- Manufacturing process details
- Water consumption details
- Waste generation details
- Electricity load details
For Electrical equipment manufacturing Set Up, you may also need:
- Details of soldering process
- E-waste handling plan
- Hazardous waste storage plan
Fees for Consent for Establishment
Fees depend on:
- Industry category (Red, Orange, Green)
- Capital investment
- State location
Example (approximate idea):
- Small Green industry: ₹5,000 – ₹15,000
- Medium Orange industry: ₹25,000 – ₹75,000
- Large Red industry: ₹1,00,000+
Each state has different fees.
Approval Timeline for Consent for Establishment
Usually:
- Green Category → 15–30 days
- Orange Category → 30–45 days
- Red Category → 45–90 days
If documents are complete, approval comes faster.
What After Consent for Establishment?
After building your factory, you must apply for:
Consent for Operation (CFO)
Without CFO, you cannot start production.
EPR Registration for Oil and Lubricant Business
If you run an oil or lubricant business, you also need EPR registration for oil and lubricant Business.
EPR means Extended Producer Responsibility.
It is regulated by the Central Pollution Control Board.
If you manufacture or import lubricants:
- You must collect used oil
- You must recycle waste oil
- You must register under EPR
This ensures safe disposal and environmental protection.
What are PESO Approvals?
If your business deals with:
- Petroleum
- Diesel
- Lubricants
- Explosives
- Compressed gases
You need PESO approvals.
PESO is handled by the Petroleum and Explosives Safety Organisation.
PESO ensures:
- Safe storage of petroleum
- Fire safety compliance
- Proper tank installation
If you are starting an oil storage unit along with CFE, both approvals are required.
Common Mistakes While Applying for CFE
Many people make simple mistakes:
- Wrong industry category selection
- Incomplete project report
- Missing land documents
- No pollution control plan
- Incorrect fee payment
Because of this, approval gets delayed.
Benefits of Getting Consent for Establishment
- Legal safety
- No penalty risk
- Smooth bank loan approval
- Good brand image
- Faster future approvals
It also helps in getting:
- Factory License
- MSME registration
- EPR registration
- PESO approvals
Frequently Asked Questions (FAQs)
1. Is Consent for Establishment mandatory in India?
Yes. Almost all manufacturing industries must obtain CFE before starting construction.
- Can I start construction without CFE?
No. Starting construction without CFE may lead to penalties or sealing of the unit.
- How long is CFE valid?
CFE is usually valid until you obtain Consent for Operation.
- Do small industries need CFE?
Yes. Even small Electrical equipment manufacturing Set Up units require it.
- Is EPR registration required for lubricant traders?
Yes, if you manufacture, import, or sell lubricants, EPR registration for oil and lubricant Business is mandatory.
- When is PESO approval required?
PESO approvals are required if your business stores or handles petroleum, diesel, or explosive materials.
- Can I apply for CFE online?
Yes. Most State Pollution Control Boards provide online application systems.
- What happens if my application is rejected?
You can correct errors and reapply.
Final Words
Consent for Establishment is not just a legal rule. It is a responsibility.
If you are planning:
- Electrical equipment manufacturing Set Up
- Oil and lubricant business
- Factory construction
- Industrial project
Then CFE is your first step.
After that, you may need:
- EPR registration for oil and lubricant Business
- PESO approvals
- Consent for Operation
If you follow the correct process and submit proper documents, approval becomes smooth and easy.
Always remember:
Safe business + Clean environment = Successful future
Author Profile
Upendra Sharma
Environmental Compliance Consultant
Upendra is a compliance expert who helps businesses get Pollution Control approvals, EPR registrations, PESO approvals, and industrial licenses across India. He believes that environmental compliance monitoring should be simple, clear, and stress-free. His mission is to guide entrepreneurs in starting their businesses legally and responsibly while protecting nature.
He has assisted multiple industries including Electrical equipment manufacturing Set Up units and oil & lubricant businesses in obtaining Consent for Establishment and other regulatory approvals smoothly.
