Understanding Industrial Sector Categorization: Recent Updates and Implications


Industrial sector categorization plays a crucial role in environmental governance, helping regulators identify and manage potential environmental impacts associated with various industries. Recently, the Central Pollution Control Board (CPCB) made significant updates to its categorization system, adding new industries and refining existing classifications. Among these updates is the inclusion of Tyre Pyrolysis Oil (TPO) industries, marking a significant development in environmental regulation. Let’s delve deeper into these changes and their implications.

Recent Updates in Industrial Sector Categorization:

The CPCB’s industrial sector categorization system categorizes industries into groups such as red, orange, green, or white based on their environmental impact. Initially comprising 242 industries, this system has evolved over time to encompass additional sectors. In a notable development, the CPCB recently added 11 more industries to these groups, reflecting the dynamic nature of environmental regulation.

These newly included industries encompass a range of activities, including dismantling of old equipment, collection of used cooking oil, and processing of materials like biogas and gold. Each industry is subject to specific regulations regarding factors such as building size and water usage, aimed at mitigating environmental pollution and promoting sustainable practices.

In a pivotal decision during a meeting held in October 2023, the CPCB expanded its categorization system to include Tyre Pyrolysis Oil (TPO) industries. This addition underscores the growing recognition of the environmental impact associated with TPO production and highlights the importance of regulating this sector effectively.

Implications for Environmental Regulation:

The inclusion of Tyre Pyrolysis Oil (TPO) industries in the CPCB’s categorization system carries significant implications for environmental regulation. TPO production involves the thermal decomposition of waste tires to extract oil, carbon black, and steel. While TPO offers potential benefits such as resource recovery and waste diversion, its production can also pose environmental risks, including air and water pollution.

By categorizing TPO industries and subjecting them to specific regulatory requirements, the CPCB aims to address these environmental concerns effectively. This move highlights the importance of proactive regulation in mitigating the environmental impact of emerging industries and technologies.


The recent updates in industrial sector categorization by the CPCB reflect ongoing efforts to enhance environmental governance and address emerging environmental challenges. The addition of Tyre Pyrolysis Oil (TPO) industries to the categorization system underscores the need for proactive regulation to mitigate environmental risks associated with evolving industrial practices. As stakeholders navigate these changes, collaboration between regulatory bodies, industries, and civil society will be essential to ensure effective implementation and compliance with environmental regulations. Ultimately, these efforts contribute to safeguarding the environment and promoting sustainable development for future generations.

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