The Kerala State Pollution Control Board (KSPCB) issued a new circular on the refund of consent fees. This circular explains how a business can get its money back when a project is dropped or when a unit becomes part of the White category. The new rule follows the Central Pollution Control Board (CPCB) directions under the Water Act, 1974 and Air Act, 1981, issued on 12 February 2025. CPCB created a uniform list of industries in Red, Orange, Green, White, and Blue categories across India. Because of this major change, the consent fee refund rules required improvement and more clarity. The new update replaces and corrects the earlier circular issued on 11 October 2023. Now, the consent fee refund process becomes smooth, simple, and fair for all types of projects in Kerala.

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Why KSPCB Changed the Consent Fee Refund Rules?

Many units moved into the White category under CPCB classification. A White category unit means the activity does not cause any pollution or causes very little impact on the environment. These units do not require permission from pollution control boards. Some projects also got dropped before the industry started operations. For both cases, paying the full consent fee made no sense. So a fair policy was needed to return the unused portion of the fee.

This update helps businesses reduce extra costs and supports environmental protection by promoting clean industries. The updated guidelines bring transparency and fairness.

Refund Policy for Dropped Projects 

Refund of the consent fee happens only when the entrepreneur clearly informs KSPCB that the project is discontinued before starting operations. The refund amount depends on the type of consent and the stage of the application.

Consent to Establish (CTE) 

This rule means CTE fee is not fully lost if the project stops early.

Consent to Operate (CTO)

Applicable only when the industry never starts operations

This means the operational consent fee also gets returned if no industrial activity starts.

Consent to Operate Renewal

• No refund allowed at this stage.
• The renewal fee is not returned because the business had a full scope to operate earlier.
• These rules encourage early decision-making before operations begin.

Refund Policy for White Category and Exempted Units

Some units now need no consent due to the new CPCB category rules. These are called White category units or exempted units. These are very clean and safe for the environment. For these units, KSPCB follows this simple rule. The board will keep whichever is greater:

• One-year fee, or
• Fee from the consent issue date till its revocation

The board will refund the remaining amount

This applies in two cases:

• Application submitted before 12 February 2025, and consent not yet issued
• Application submitted after 12 February 2025, whether consent is issued or not

This gives major relief to clean and small-impact units.

Refund Only After Consent Revocation

This step is necessary to maintain clear environmental records:

• Refund requests start only after the revocation of any issued consent
• Records must show project cancellation or White category status
• KSPCB calculates the refund only after final confirmation of dates and validity
• This prevents confusion and protects compliance records in the pollution control system.

How to Apply for Consent Fee Refund?

A simple set of actions helps get the refund:

1. Submit a written application for a refund to KSPCB
2. Attach documents showing the project dropped or the unit moved to White category
3. Request revocation if consent has already been issued
4. Board reviews and calculates the eligible refund amount
5. Refund is processed as per the rules

The board checks everything properly before returning the money.

Benefits of the Updated KSPCB Refund Circular

The updated refund system offers many benefits:

• Saves money for businesses that decide early to stop operations
• Encourages clean and environment-friendly business activities
• Fair and transparent rules reduce disputes and confusion
• Helps small and micro units that come under White category
• Supports ease of business in Kerala under environmental laws
• Promotes trust between the industry and the Pollution Control Board
• Industries can now plan better without fear of losing the full consent fee.

Key Points to Remember

Here are some important things to keep in mind:

• Refund applies only when the project is dropped before operations
• KSPCB always retains the yearly fee.
• Renewal of CTO gets zero refund
• White category units get a major refund benefit
• Revocation must happen before any refund
• The policy promotes fairness, transparency, and environmental compliance

These rules make the system easy for both new and existing industries.

Conclusion

The new KSPCB consent fee refund rules gives clear guidance about everything related the CTE & CTO. It aligns fully with CPCB classification and supports business decisions. If a project stops before starting operations or becomes a White category unit, the consent fee does not go to waste. The refund happens after calculating the unused time and after revoking the consent.

This circular builds trust, reduces money loss, and promotes a clean and sustainable industry in Kerala. The rule also supports national efforts for better environment management under the Water and Air Acts.

KSPCB’s step strengthens good governance, transparent working, and smooth environmental compliance.