Law Updates

Subject

Summary: The Punjab Pollution Control Board ( PPCB ) has cleared up an important question for plastic carry bag manufacturers in the state. The 120-micron thickness requirement applies not only to conventional plastic carry bags but also to biodegradable and compostable plastic carry bags. This means that changing the raw material or marketing a carry bag as biodegradable or compostable does not, by itself, take the product outside the 120-micron requirement referred to in the PPCB clarification. The issue is also closely linked with pollution-control consent. PPCB has instructed its Regional Offices not to grant, renew or extend Consent to Establish (CTE) or Consent to Operate (CTO) for units manufacturing plastic carry bags below the prescribed thickness. Existing consents for such activities are also covered by the direction.  For manufacturers, the practical question is no longer just what material the bag is made from. The product specification, its thickness and the activity mentioned in the CTE/CTO now need to be looked at together. PPCB Clarification at a Glance Particular Details Issuing Authority Punjab Pollution Control Board Nature of Document Clarification Date 25 August 2026 Main Issue Applicability of the 120-micron condition to biodegradable and compostable carry bags Product Covered Plastic carry bags Thickness Referred To 120 microns Categories Covered Virgin, recycled, biodegradable and compostable plastic carry bags Consent Impact CTE/CTO grant, renewal and extension Existing Consent Certain existing consents are directed to be revoked/cancelled Other Products Covered Prohibited identified Single-Use Plastic items Enforcement Surprise inspections, including at odd hours The clarification follows earlier PPCB instructions as well as the Punjab Department of Local Government notification dated 2 April 2025.  What Exactly Has PPCB Clarified? The main point is simple. A plastic carry bag does not get a different thickness treatment merely because it is made from biodegradable or compostable plastic. PMIDC, after examining the relevant rules, notifications and PPCB reports, clarified that the notification dated 2 April 2025 applies to all categories of plastic carry bags. The 120-micron requirement is to be applied uniformly to: Virgin plastic carry bags  Recycled plastic carry bags  Biodegradable plastic carry bags  Compostable plastic carry bags  This removes a major point of doubt for manufacturers that were treating compostable or biodegradable carry bags differently from ordinary plastic carry bags. For businesses, the safest reading of the PPCB letter is that material type and thickness are separate questions. A product may be biodegradable or compostable, but that characteristic alone does not remove the thickness condition addressed in the clarification. Does the 120-Micron Rule Apply to Biodegradable and Compostable Carry Bags? Yes. According to the clarification communicated by PPCB, both biodegradable and compostable plastic carry bags fall within the same 120-micron requirement. Virgin Plastic Carry Bags- Carry bags made from virgin plastic are covered. A manufacturer producing such bags below the prescribed thickness can face difficulty with CTE/CTO grant, renewal or extension. Recycled Plastic Carry Bags- Recycled plastic carry bags are treated in the same manner for this purpose. Using recycled material does not create a lower thickness limit under the clarification. Biodegradable Plastic Carry Bags- Biodegradable carry bags are expressly included. A manufacturer cannot rely only on the biodegradable nature of the product to claim that the 120-micron condition does not apply. Compostable Plastic Carry Bags- The same position applies to compostable plastic carry bags. Composability does not, by itself, create an exemption from the thickness requirement. PPCB’s letter specifically says the rule applies regardless of whether the carry bag is made from virgin, recycled, biodegradable or compostable plastic.  Why Was This Clarification Needed? The present letter did not arise in isolation. PPCB had already issued directions on plastic carry bag manufacturing before the August 2026 clarification. PPCB Direction of 6 November 2024 Regional Offices were earlier directed not to grant or extend the validity of Consent to Operate for manufacturing compostable, biodegradable and non-biodegradable plastic carry bags. The earlier communication also dealt with consents that had already been granted or renewed, including through auto-renewal.  Further Direction of 9 December 2024 PPCB then issued another instruction after concerns were raised regarding illegal manufacturing and use of compostable and biodegradable plastic carry bags. Regional Offices were asked to: Conduct surprise inspections  Carry out inspections even at odd hours  Check illegal manufacturing of compostable and biodegradable plastic carry bags  Take note of identified prohibited Single-Use Plastic items  Avoid granting consent for the specified prohibited manufacturing activities  Representation from the Punjab Compostable Association The Punjab Compostable Association, Amritsar later approached the Board seeking permission to manufacture and sell compostable carry bags in Punjab in accordance with the Plastic Waste Management Rules, 2016.  This led PPCB to seek clarification from the Punjab Municipal Infrastructure Development Company (PMIDC), Department of Local Government, Punjab. PMIDC’s response answered the central issue: biodegradable and compostable plastic carry bags are also covered by the 120-micron requirement.  Regulatory Timeline: How the Position Developed Date What Happened Why It Matters 06.11.2024 PPCB issued earlier consent-related directions Regional Offices were told not to grant or extend certain consents 09.12.2024 PPCB issued inspection and enforcement directions Surprise inspections and checks on prohibited manufacturing were strengthened 02.04.2025 Department of Local Government issued notification Plastic carry bags below 120 microns were addressed 06.06.2025 PPCB circulated the notification Regional Offices were informed of the position 12.08.2026 PMIDC issued clarification Biodegradable and compostable carry bags were clearly brought within the same thickness interpretation 25.08.2026 PPCB circulated the clarification Regional Offices were directed to implement the clarified position These dates are expressly referred to in the PPCB communication.  Which Carry Bags Are Covered? The position can be understood quickly from the table below. Carry Bag Category 120-Micron Requirement CTE/CTO Position Below 120 Micr Virgin plastic Applicable Consent not to be granted, renewed or extended Recycled plastic Applicable Same treatment Biodegradable plastic Applicable Same treatment Compostable plastic Applicable Same treatment For manufacturers, this means the product cannot be assessed only by its environmental claim or raw-material category. The thickness of the finished carry bag remains a central compliance point under the clarification. Territorial Applicability of the Plastic Carry Bag Rules in Punjab The PPCB letter records that the Department of Local Government notification dated 2 April 2025 prohibited manufacture, stocking, distribution, recycling, sale or use of plastic carry bags below 120 microns within the jurisdiction of Municipal Corporations, Municipal Councils and Nagar Panchayats in Punjab.  The letter, however, separately refers to certain areas. Areas Mentioned Separately These are: Municipal Corporation SAS Nagar (Mohali)  Kharar  Dera Bassi  Zirakpur  Ropar  The PPCB communication mentions these places in connection with the National Green Tribunal order dated 20 January 2016 and subsequent orders in O.A. No. 442 of 2015.  A business located in one of these areas should therefore avoid relying on a general statewide reading alone. The local position should be checked along with the relevant NGT orders and instructions applicable to that jurisdiction. CTE and CTO Requirements for Plastic Carry Bag Manufacturers in Punjab The biggest business impact of the clarification is on pollution-control consent. What is CTE? Consent to Establish (CTE) is the pollution-control consent generally connected with setting up or establishing an industrial activity. What is CTO? Consent to Operate (CTO) relates to operating the industrial unit after the applicable consent conditions have been met. For plastic carry bag manufacturers, the current PPCB direction is specific. No CTE/CTO under the Water Act, 1974 and the Air Act, 1981 is to be granted, renewed or extended for a unit manufacturing plastic carry bags below 120 microns, whether the bags are made from: Virgin plastic  Recycled plastic  Biodegradable plastic  Compostable plastic  What This Means for a New Unit A business proposing to start plastic carry bag manufacturing should make sure that the product described in its consent application matches the PPCB requirement. The proposed thickness, type of product, and manufacturing activity should be clearly stated. What This Means at Renewal Stage A manufacturer applying for renewal cannot assume that an earlier consent will automatically continue on the same basis. If the activity covered by the consent involves carry bags below the permitted thickness, the present PPCB direction becomes directly relevant. Why Consent Review Matters A PPCB consent consultant in Punjab can be useful where a manufacturer needs to check whether the proposed or existing activity matches the conditions that PPCB is currently applying. Similarly, businesses planning a new unit may seek assistance from a CTE CTO consultant in Punjab before filing so that the product description, plant activity, and consent documents are consistent from the beginning. Undertaking for Carry Bag Thickness The clarification also allows PPCB to seek an undertaking while considering CTE or CTO applications. The applicant may be asked to confirm that the carry bags proposed to be manufactured will have a thickness of more than 120 microns.  This wording needs to be read carefully. The PPCB letter does not say that every applicant must submit the undertaking automatically. It says the applicant may be asked to provide it. Businesses Should Pay Attention to Two Things 1. What is declared in the undertaking The statement made to PPCB should correctly describe the product that the unit intends to manufacture. 2. What is actually produced Once production starts, the product manufactured at the unit should remain consistent with what has been declared to the authority. There is also a drafting distinction in the letter. One part refers to carry bags less than 120 microns, while the undertaking language refers to the manufacture of bags more than 120 microns. Businesses should follow the exact requirement communicated by the concerned Regional Office rather than making assumptions about this wording. What Happens to Existing CTE/CTO for Carry Bags Below 120 Microns? The clarification is equally important for units that already hold pollution-control consent. PPCB has directed that CTE/CTO already granted or renewed including consent obtained through the auto-renewal process be revoked or cancelled where the unit manufactures: Carry bags below 120 microns, irrespective of category  Prohibited identified SUP items  This means an older consent cannot simply be treated as protection against the clarified position. Existing Manufacturers Should Review The products mentioned in the current CTE/CTO  The actual products being manufactured  Carry bag thickness  Whether biodegradable or compostable products have been treated differently in the past  Whether any identified prohibited SUP item is included in production  Whether the consent came through auto-renewal  Where a mismatch exists, businesses should assess it before it becomes an issue during inspection or renewal. PPCB Position on Prohibited Single-Use Plastic Items The letter is not limited to carry bags. PPCB has also directed that CTE/CTO should not be granted for manufacturing prohibited identified Single-Use Plastic items. The letter gives examples such as: Cups  Tumblers  Spoons  Forks  Straws  These examples should not be treated as the complete list of prohibited SUP products. A manufacturer dealing with another single-use plastic item should separately check whether that specific product falls within an applicable prohibition. PPCB Inspection and Enforcement Measures Manufacturers should also pay attention to what PPCB has said about inspections. Surprise Inspections Will Continue Regional Offices have been instructed to continue surprise inspections. The purpose is to check whether manufacturing activity on the ground matches the legal and consent position. Inspections May Take Place at Odd Hours The earlier PPCB instruction specifically referred to inspections at odd hours, and the latest letter says Regional Offices should continue surprise inspections to verify compliance and detect illegal manufacturing.  This makes day-to-day compliance more important than preparing records only when an inspection is expected. Monthly Reporting by Regional Offices The letter also asks Regional Offices to submit an action-taken report to Head Office every month through the MPR.  The clarification does not prescribe a fixed inspection schedule for each industrial unit. What Does This Mean for Compostable Carry Bag Manufacturers? Compostable carry bag manufacturers are one of the main groups affected by this clarification. Earlier uncertainty centred on whether a compostable carry bag could be treated differently because of its material or environmental characteristics. The answer given through PMIDC is clear for the 120-micron requirement: compostable carry bags remain covered. Manufacturers Should Review Actual thickness of the finished carry bag  Existing CTE and CTO  Product description mentioned in consent documents  Pending renewal or extension applications  Any undertaking submitted to PPCB  Production records that may be checked during inspection  The clarification does not say that all compostable products have been prohibited. Its focus is the application of the 120-micron carry bag requirement and related consent controls.  What Does This Mean for Biodegradable Carry Bag Manufacturers? Biodegradable plastic carry bags are also expressly included in the same thickness interpretation. For these manufacturers, biodegradable status does not create a separate lower thickness requirement. The areas that deserve attention are: Product Specification Check whether the manufactured bag meets the applicable thickness condition. Consent Details The product mentioned in the CTE/CTO should match what is being manufactured at the unit. Renewal Position A pending renewal should be reviewed in light of the current PPCB direction. Inspection Readiness Manufacturers should be able to show that actual production is consistent with consent details and declarations made to the Board. Impact on Plastic Carry Bag Manufacturers in Punjab The effect of the clarification goes beyond paperwork. Business Area Practical Impact Product specification Thickness may need to be checked or revised Production Manufacturing below the permitted thickness creates direct consent risk CTE application Proposed activity must match PPCB's clarified position CTO application Operating activity and product specification need to align Renewal Existing activity may be examined against the 120-micron condition Auto-renewed consent Not protected from the revocation/cancellation direction Quality control Regular thickness checks become commercially sensible Inspection Surprise inspections may verify actual plant activity Product portfolio Prohibited SUP products need separate checking For smaller manufacturers, even a seemingly minor mismatch between the product description and actual production can create avoidable regulatory trouble. That makes periodic internal review more useful than waiting until the next consent renewal. What Should Plastic Carry Bag Manufacturers Check Now? Businesses do not need to turn this into a complicated exercise. A focused review of the unit and its existing approvals is more useful. 1. Check Every Carry Bag Being Manufactured Prepare a clear list of: Virgin plastic carry bags Recycled plastic carry bags Biodegradable carry bags Compostable carry bags 2. Verify Actual Thickness Do not rely only on the design specification. The manufactured product should be checked against the requirements being applied by PPCB. 3. Compare Production with the CTE/CTO Look at the existing consent and confirm: Product type Manufacturing activity Capacity, where relevant Product description 4. Review Auto-Renewed Consent Where the existing CTE/CTO was renewed automatically, check whether any affected product is still covered. 5. Check for Prohibited SUP Products A unit manufacturing more than one plastic product should separately review whether any item falls within an identified SUP prohibition. 6. Keep Undertakings Consistent with Production Where PPCB has asked for an undertaking, the declaration should match the activity actually carried out at the plant. 7. Keep Inspection Records Ready A manufacturer may consider maintaining accessible copies of: Current consent Product specifications Relevant declarations Production records Internal thickness checks These are sensible internal controls; the clarification itself does not prescribe this exact record list. Compliance Risks Businesses Should Avoid Certain assumptions can now create difficulty. Assuming Compostable Means Exempt The current clarification does not support that view. Treating Biodegradable Bags Separately Biodegradable carry bags are also included in the 120-micron interpretation. Relying on an Old CTE/CTO An existing consent does not override the present PPCB direction where the unit manufactures affected products. Relying on Auto-Renewal Alone The letter expressly refers to consents renewed through auto-renewal when dealing with revocation or cancellation. Manufacturing a Prohibited SUP Product PPCB has separately reiterated that consent should not be granted for identified prohibited SUP manufacturing. Ignoring Actual Plant Activity A consent document and actual production should not tell two different stories. The letter does not prescribe a specific monetary fine in this clarification. Any discussion of penalties should therefore be based on the applicable governing law rather than guessed from this communication. Is the Clarification Helpful or an Additional Burden? From the regulator's side, the clarification gives Regional Offices one clear interpretation. They do not have to decide differently merely because a carry bag is labelled biodegradable or compostable. For manufacturers, however, the impact depends on what they are already producing. Regulatory Side Business Side One thickness interpretation for different materials Some products may need modification Less ambiguity for consent decisions Existing consent may need closer review. Clearer treatment of biodegradable and compostable bags Manufacturers cannot rely only on material claims. Easier field-level verification Internal quality checks may need improvement. Stronger control over prohibited manufacturing MSMEs may face adjustment costs For businesses already producing compliant products under matching consent conditions, the clarification mainly provides certainty. The bigger challenge is for units where the product specification, existing consent or manufacturing practice does not match the position now being applied by PPCB. How Corpseed Can Help with PPCB and Plastic Waste Compliance A plastic manufacturing unit usually has more than one compliance issue to check. The product, pollution-control consent and plastic-waste requirements need to match the actual activity carried out at the plant. Corpseed can support manufacturers looking for a PPCB consent consultant in Punjab with consent review, applications and ongoing environmental compliance work. PPCB Applicability Review Corpseed can examine the nature of the manufacturing activity and help identify the PPCB requirements that are relevant to the unit. This can cover: Product category  Manufacturing activity  Existing approval status  Applicable pollution-control consent  CTE and CTO Application Assistance As a CTE CTO consultant in Punjab, Corpseed can support businesses with: Fresh CTE applications  CTO applications  Renewal-related documentation  Modification requirements, where applicable  Review of information before filing  The purpose is to make sure the application reflects the activity the business actually proposes to carry out. Existing Consent Review An existing consent should be checked when the plant's products or manufacturing activity have changed over time. Corpseed can help compare: Current CTE/CTO  Actual manufacturing activity  Product description  Relevant PPCB requirements  This can help identify issues before renewal or inspection. Plastic Waste Compliance Review As a plastic waste compliance consultant, Corpseed can assist manufacturers in reviewing the regulatory position of their products and understanding how plastic-waste restrictions affect their business activity. Pollution Control Compliance Gap Assessment A compliance gap review can identify differences between: Approved activity  Actual production  Product specifications  Declarations made to the authority  Current PPCB requirements  This can be particularly useful for units operating under older consents. Documentation and Undertaking Support Where PPCB asks for declarations or an undertaking during consent processing, Corpseed can assist with document preparation and review. The wording should be based on the actual activity of the unit rather than a generic template. PPCB Inspection Readiness Corpseed's environmental compliance services can also support manufacturers in organising relevant consent and compliance records ahead of a PPCB inspection. The focus should be on having records that match the actual plant operation. Ongoing Environmental Consent Support Businesses may also require assistance after the initial approval. A pollution control consent consultant can support: Consent renewal  Consent modification  Regulatory document review  Compliance gap checks  Ongoing PPCB-related requirements  Corpseed does not guarantee the grant or renewal of CTE/CTO. The final regulatory decision remains with the competent authority. Key Takeaways PPCB has clarified that the 120-micron requirement applies to biodegradable and compostable plastic carry bags as well.  Virgin and recycled plastic carry bags receive the same treatment for this purpose.  A biodegradable or compostable claim does not automatically create an exemption.  CTE/CTO is not to be granted, renewed or extended for manufacturing carry bags below 120 microns under the PPCB direction.  Applicants may be asked to provide an undertaking regarding the thickness of the carry bags proposed to be manufactured.  Existing consent, including auto-renewed consent, can also be affected.  PPCB has separately reiterated restrictions on identified prohibited Single-Use Plastic products.  Surprise inspections, including inspections at odd hours, continue to form part of PPCB's enforcement approach.  Conclusion For plastic carry bag manufacturers in Punjab, the August 2026 clarification settles one of the main questions around biodegradable and compostable bags. The material used in the bag does not, on its own, remove the 120-micron condition. Manufacturers now need to look closely at what is actually being produced, what is stated in the existing CTE/CTO and whether the two match the position being followed by PPCB. Older and auto-renewed consents also deserve attention where affected products are still being manufactured. Businesses that need help with consent review, fresh applications or ongoing environmental compliance can work with a PPCB consent consultant in Punjab to assess the unit's present position before renewal, modification or inspection.