Law Updates

Subject

Summary: The Rajasthan State Pollution Control Board (RSPCB) has restricted Consent to Establish (CTE), and Consent to Operate (CTO) approvals for industrial projects near the Jojari River buffer zone in RIICO Industrial Area, Kakani, Jodhpur and Rajasthan. The order follows Hon'ble Supreme Court directions to protect environmentally sensitive areas and prevent industrial activities affecting the river ecosystem. The decision may impact industrial investments, manufacturing projects, expansion plans, land acquisition and project approvals in the affected region. Businesses planning new facilities or expansions should review site suitability, environmental compliance requirements and approval risks to avoid delays, financial impact, and regulatory challenges. What Is the Latest RSPCB Order? The Rajasthan State Pollution Control Board (RSPCB) issued an order on 8 July, 2026, directing its regional offices to adopt a stricter approach while processing Consent to Establish (CTE) and Consent to Operate (CTO) applications for industries located near the Jojari River in RIICO Industrial Area, Kakani, and Jodhpur. The order follows the directions of the Hon'ble Supreme Court and aims to protect the river ecosystem by preventing industrial development in environmentally sensitive areas. The notification requires authorities to carry out additional location-based verification before granting environmental consents. Along with pollution control compliance, officials must also assess whether a proposed project falls within the notified area and satisfies the conditions specified by the Board. The order is expected to impact: New industrial projects seeking Consent to Establish (CTE). Existing industries applying for Consent to Operate (CTO) or renewals. Industrial expansion and modernisation projects. RIICO plot holders planning future development. Investors evaluating industrial land near the affected area. For businesses, the notification highlights the importance of conducting environmental due diligence before land acquisition or project execution. Companies planning investments in the affected region should review the revised approval requirements at an early stage to minimise delays, avoid compliance issues and ensure their projects align with the latest environmental regulations. Background of the Regulatory Action The RSPCB order was issued after concerns were raised regarding pollution levels in the Jojari River, and the impact of industrial activities around the area. Over time issues related to industrial discharge and development near the river led to increased environmental attention and regulatory review. Following the matter being considered by the Hon'ble Supreme Court, authorities directed stricter checks on industrial activities near the river. Based on these directions RSPCB introduced additional scrutiny for CTE and CTO approvals to ensure that new and existing industrial projects comply with environmental requirements. The regulatory action is intended to: Protect the Jojari River and adjoining environmentally sensitive areas.  Prevent industrial development in locations that may affect the river ecosystem.  Strengthen compliance with the Supreme Court's directions.  Improve environmental due diligence before granting CTE and CTO approvals.  What Has Changed Under the Latest RSPCB Notification? The latest RSPCB notification changes the way Consent to Establish (CTE) and Consent to Operate (CTO) applications will be assessed for industries located near the Jojari River in RIICO Industrial Area, Kakani. While pollution control compliance remains mandatory, the Board has introduced additional location-based verification to ensure industrial projects do not adversely affect environmentally sensitive areas. Earlier Approach Revised Approach Focus on pollution control infrastructure and statutory compliance. Pollution control compliance along with location-based environmental verification. Site location was generally assessed as part of routine documentation. Detailed verification of the project location before granting CTE or CTO. Standard consent processing procedures were followed. Additional scrutiny for projects falling within the notified area. Limited emphasis on river protection during consent evaluation. Greater focus on protecting the river ecosystem and environmentally sensitive areas. Key Directions Issued by the Rajasthan State Pollution Control Board The order requires RSPCB's regional offices to follow the directions below while processing consent applications in the notified area: 1. Verify the Project Location Confirm whether the proposed industrial site falls within the notified area near the Jojari River before processing the application. 2. Consider High Flood Level (HFL) Records Examine HFL and other relevant land records to determine whether the project location is suitable for industrial development. 3. Apply Restrictions While Granting CTE and CTO Process Consent to Establish (CTE) and Consent to Operate (CTO) applications only after ensuring compliance with the conditions specified in the order. 4. Scrutinise New and Expansion Projects Carry out additional verification for proposed industrial units as well as projects involving expansion or modification. 5. Follow the Supreme Court's Directions Ensure that all consent decisions are consistent with the directions issued by the Hon'ble Supreme Court for protecting the Jojari River and its surrounding environment. Which Industries, Businesses, and Projects Are Affected? The RSPCB order primarily affects businesses planning industrial activities within or around the notified area near the Jojari River in RIICO Industrial Area, Kakani, Jodhpur. Both new investments and certain ongoing projects may face additional scrutiny during the environmental consent process. Category Likely Impact Existing Industrial Units CTO renewals, modifications, or operational changes may require additional verification where applicable. New Manufacturing Projects CTE applications will be subject to location-based assessment before approval. Industrial Expansion Projects Expansion proposals may undergo stricter review if they fall within the notified area. RIICO Plot Holders Businesses planning construction on allotted industrial plots should verify whether the site is covered by the notification. MSMEs Small and medium enterprises establishing new units may experience additional compliance requirements. Large Industries Capital-intensive projects should evaluate the notification during project planning and land due diligence. Industrial Developers Developers of industrial parks or common infrastructure should assess the regulatory implications before project execution. Infrastructure Projects Utilities and supporting infrastructure proposed in the affected area may also require careful compliance assessment. Prospective Investors Investors should review regulatory restrictions before acquiring land or committing capital to new projects. Impact on Consent to Establish (CTE) and Consent to Operate (CTO) Consent to Establish (CTE) and Consent to Operate (CTO) remain mandatory approvals for industries under the Water Act and the Air Act. However, the latest RSPCB order adds another layer of scrutiny for projects located near the Jojari River, making location verification an important part of the approval process. The impact on different types of applications is summarised below: Type of Application Likely Impact New CTE Applications Subject to additional verification before approval if the project falls within the notified area. Pending CTE Applications May undergo further review based on the directions issued under the latest order. CTO Applications Authorities may verify compliance with the revised requirements before granting operational consent. Expansion Projects Proposals involving capacity expansion or new facilities may require additional assessment. Existing Consent Holders Existing approvals generally remain valid, but future renewals, modifications, or expansion proposals may be examined under the revised framework. Commercial and Operational Impact on Businesses The RSPCB order is expected to influence project planning and regulatory approvals for businesses proposing industrial activities in the notified area. While the order primarily focuses on environmental protection, it may also affect investment decisions, project execution and compliance planning. Some of the key business implications include: Project timelines: Additional verification during the consent process may extend approval timelines for certain projects. Investment decisions: Before acquiring industrial land or committing capital, investors may need to assess regulatory restrictions. Expansion plans: Industries planning capacity expansion should evaluate whether the proposed site falls within the notified area. Land due diligence: Environmental and regulatory checks may become an important part of land acquisition and site selection. Financing: Lenders and financial institutions may seek confirmation that necessary environmental approvals can be obtained before funding projects. Compliance costs: Businesses may incur additional costs for environmental assessments, documentation, surveys and professional advisory services. Environmental Compliance Requirements Businesses Should Review Businesses planning to establish projects near environmentally sensitive areas are required to review significant compliance aspects before proceeding with investment or expansion plans. Important areas include: High Flood Level (HFL) verification: Check whether the proposed project location meets applicable HFL requirements and does not fall under restricted areas. Site suitability assessment: Review whether the industrial site is suitable for development by considering environmental risks, location factors and regulatory requirements. River buffer requirements: Review mandatory buffer zones and distance requirements applicable to river areas. Environmental documentation: Maintain updated approvals, reports, land records and regulatory documents. Pollution control systems: Ensure that air pollution, wastewater treatment, and waste management infrastructure meet applicable standards. Wastewater management: Review discharge management systems to avoid compliance issues related to industrial effluents. Internal compliance audits: Regularly review internal processes and compliance status to identify gaps early, and address them before inspections or regulatory reviews. Regulatory recordkeeping: Keep all important documents, including consents, renewals, monitoring reports and compliance records, properly updated and organised for future reference. Business Risks of Non-Compliance Failure to meet the revised environmental requirements may create approval, financial and operational challenges for businesses planning industrial projects. Potential risks include: CTE/CTO approval delays: Applications may take longer for approval if additional verification is required, or compliance requirements are not properly addressed. Project execution delays: Pending approvals can affect construction timelines, installation activities and commercial operations. Regulatory action: Non-compliance may result in notices, restrictions, or other enforcement measures. Financial impact: Delays may increase project costs, affect loan timelines, and impact contractual commitments. Operational disruption: Businesses may face difficulties in starting new operations, expanding facilities, or maintaining planned production schedules. Reputational concerns: Environmental compliance issues may affect stakeholder and investor confidence. Higher scrutiny: Projects in sensitive areas may receive increased regulatory monitoring. Immediate Compliance Action Plan for Businesses Businesses planning industrial activities in the affected region should consider the following steps: Review whether the proposed project location falls within the notified area. Assess pending CTE, CTO, renewal, or expansion applications. Conduct environmental due diligence before land acquisition or project execution. Verify HFL records, buffer zone requirements, and site-related documents. Review existing pollution control and wastewater management systems. Maintain updated environmental approvals, regulatory documents and compliance records to avoid issues during reviews or inspections. Consult compliance experts to understand the applicable environmental requirements and prepare the necessary documents and approvals. Keep track of updates issued by RSPCB and other regulatory authorities to understand new requirements and take timely action. How This Order May Influence Future Industrial Development in Rajasthan The RSPCB action may influence how industrial projects are planned and approved in environmentally sensitive areas of Rajasthan. Future industrial development may see greater focus on: Location-based environmental assessments before project approval. Sustainable industrial planning and responsible land selection. Stronger monitoring of pollution control and environmental safeguards. Increased importance of ESG and environmental risk management. Better coordination between industrial development authorities and environmental regulators. Businesses may need to consider environmental compliance as an important part of project planning rather than only a regulatory requirement after investment decisions. Corpseed's Compliance Support for Industries Changing environmental regulations can require businesses to review project locations, update compliance documentation, and strengthen approval processes. Professional compliance support can help organisations understand regulatory requirements, identify potential risks, and prepare necessary documentation for smoother approvals. 1. CTE and CTO Approval Assistance Support in preparing and reviewing Consent to Establish (CTE) and Consent to Operate (CTO) applications.  Guidance on documentation requirements and approval procedures under pollution control regulations.  Assistance in identifying compliance gaps that may affect consent processing.  2. Environmental Due Diligence and Site Assessment Support in reviewing project locations against applicable environmental requirements.  Assistance with site suitability assessments, including regulatory and environmental considerations.  Guidance on evaluating risks related to HFL requirements, buffer zones, and sensitive areas.  3. Pollution Control and Compliance Documentation Support Assistance in preparing and organising pollution control-related documents.  Support in reviewing wastewater management, waste handling, and environmental compliance requirements.  Guidance on maintaining records required during regulatory reviews and inspections.  4. Regulatory Compliance Advisory and Audit Support Assistance in assessing existing environmental compliance status.  Support in identifying gaps through compliance reviews and audits.  Guidance on regulatory updates, approval requirements, and future compliance planning.  5. Industrial Expansion and Project Compliance Support Advisory support for businesses planning new facilities, expansions, or modifications.  Assistance in evaluating compliance requirements before project execution.  Support in aligning business plans with evolving environmental regulations.