By Team Metacorp on 22 Apr 2022
How to get Pollution board certificate for Asbestos products manufacturing?
Asbestos is a naturally occurring mineral Fiber. It is used because of its properties like affordability, versatility and insulation that make the construction of residential and commercial buildings more affordable.
Asbestos production is being fuelled by various industries such as construction, commercial sector etc in today's time. These industries include a wide range of activities involving asbestos such as cast-off in roofing, thermal and electrical insulation, cement pipe and sheets, flooring, gaskets, friction materials, coatings, plastics, textiles, paper and other products.
In developing countries like India and China, Asbestos is a big business. India stands second largest among the world in the market of asbestos and the industry is worth an estimate of $1 billion and still growing.
How to start the manufacturing of asbestos products?
Here are all the important steps to be followed before starting a business of asbestos product manufacturing-
Before going further, the most important thing to acknowledge is that this business will require a lot from you including money, time and focused efforts. On the other side if done well this business has great opportunities and scope for profitability. So, here are the business requirements-
I. An adequate amount of initial capital is required to set up the facility for asbestos manufacturing. This capital can be raised by using your own funds, asking investors, or taking up loan from banks. Capital will mostly be used to purchase the heavy machinery needed in production.
II. A minimum 1200 sq. ft. plot area in an industrial zone is required to set up the factory and the administrative office.
III. The services of a business start-up consultant could be hired for a systematic approach towards setting up a new business and for the knowledge about the certificates and compliance requirements. An expert in this field could help you plan out business. It will not only help in setting up of business but will also help you know the dos and don’ts of it.
IV. Knowledge about which license will be needed and the procedure to apply for it
V. Proper permissions and licenses to run the business without any hurdles.
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Import and export data –
India’s overall cement production capacity was nearly 545 million tonnes (MT) in FY20 and accounted for over 8% of the global installed capacity in FY20. In the financial year 2020, the cement consumption was 327 and in the year 2021, the consumption was 349. The production of cement was 329 in 2020 and in the year 2021, the production was 294.
Indian textiles and apparel industry contributed 2.03% to the GDP of India, 13% to industrial production, and 12% to export earnings. In the financial year 2020 the textile trade was 22.9 and the financial year 2021 was 30.4.
Initial cost of project –
In order to set up a facility of manufacturing asbestos products, the Company’s authorized capital may approximately stand at Rs.50 lakhs and may have nearly 29-30% paid-up capital which is Rs 15-16 lakhs approximately.
Feasibility analysis –
Despite recent technological advancements in the asbestos manufacturing sector, the industry continues to face pressures to increase production at a low cost while delivering high-quality cast components for intricate designs. However, high-quality castings may be commercially produced by careful selection of casting technology and thorough controls. This industry has a lot of successful businessmen, therefore it's a profitable business. The right approach needs to be explored through extensive studies on the production process with the help of business experts.
How the emissions and effluents discharged from the industry can impact the environment/human health?
Waste generated while manufacturing asbestos contaminates the environment when toxic and heavy materials are not rightly processed and disposed off. When such waste is released into the oceans or landfills, hazardous materials intoxicate the environment causing harm to wildlife and humans. In addition to that our waste management infrastructure gets disturbed when materials eligible for recycling go in the garbage heap instead of being reused or repurposed.
Emissions throughout the process contain various toxic gases and when such gases are released into the environment, the air becomes toxic which causes the death of forests, acid rain, photochemical smog, which directly affects human health especially the lungs of a human body. Such toxic air can kill humans and other creatures.
What are the important registrations and certificates are required to set up the industry of asbestos manufacturing products?
Determine the status of legal entity –
Your business should have an identity and therefore you need to build the legal entity of the business as per your resources, goals, and requirements. It can be any of the below mentioned:
A partnership firm where your business will be governed by the partnership act
An LLP i.e. Limited Liability Partnership
Private/Public Limited Company
Producer company where your company will be governed by the Companies Act
Co-operative society or a trust.
District Industries Centre (DIC) registration of Small-Scale Industries (SSI) units is not compulsory but it is important and beneficial as this registration will provide a lot of benefits to the business such as in taxation and loans etc. At first a provisional registration certificate is given and afterwards when the manufacturing process starts, a permanent registration certificate is given.
Micro Small Medium Enterprises (MSME) or SSI registration can be done only for the small scale and ancillary units or undertakings with investment in plant and machinery of less than Rs.1 Crore may go for registration with the Director of Industries of the concerned State Government.
Any industry which does not require an industrial license may apply as an SSI unit at DIC for Provisional Registration Certificate (PRC). Even the industries of Schedule II with employees less than 50/100 may apply for this registration. Such registration will be valid for five years.
State Pollution Control Board license –
Any manufacturing process or a production process is bound to generate some kind of waste at the end of the process. If a process does not generate any waste, it may generate some type of pollution, such as air pollution, water pollution or noise pollution. To monitor and regulate the factories so that the pollution generated from them could be reduced, every State has a State Pollution Control Board and every Union Territory has a Pollution Control Committee. This Board or the Committee is legally mandated to certify the businesses for their pollution generation capacity. Every business entity is required to seek the permission from this Pollution Control Board to before setting up the manufacturing facility. The certificate thus granted by the State Pollution Control Board is called as the Consent to Establish (CTE) Certificate.
Procedure of determination of the category of subject matters of the businesses –
The determination process is typically based on scores. For measuring air pollution marks will be obtained by recognising various air pollutants and scoring accordingly out of total marks of 40 and for water pollution such scoring will be similarly out of total marks of 40 and remaining 20 marks out of 100 is allotted for measuring hazardous waste.
If the commercial subject matter’s score is higher than 60 out of total marks of 100 then such subject matter falls under orange category.
It is to be mentioned here that commercial businesses under red will not be permitted to start or run their businesses in eco-sensitive areas.
The businesses grouped under red category have to apply for Consent to Start and then start such business and thereafter apply for Consent to Operate. The simple steps can be followed to understand the procedure of applying for such a certificate: -
i. The initial application is available on the State Pollution Control Board gateway.
ii. The initial application has to be made through online mode only through the online State Pollution Control Board gateway.
iii. The fees for such applications have to be made through online mode. Such fees for Consent to Establish (CTE) and Consent to Operate (CTO) under Air and Water Act can be calculated and the amount of such fees depend on certain factors such as – type of the business, day of commencement, capital investment and the duration of such application.
iv. The required documents relating to the details of the industry has to be scanned and uploaded while filling the online application and afterward the hard copy of such application along with those scanned documents and receipt of the fees paid has to be sent by post to the State Pollution Control Board.
The status of a pending application for consent to can be checked in the portal of State Pollution Control Board.
Consent to operate –
The industries categorized under red, orange and green only need to apply for Consent to Establish (CTE) and Consent To Operate (CTO) under the Air and Water Acts. The consent to operate and renewal shall be granted for 5 years in case of red category and the industry of asbestos manufacturing which is in the red category.
Ground Water Boring Permission
As the manufacturing process for asbestos products require some amount of water, the business owner needs to first ascertain the sources of water supply, for the water used in manufacturing process and for the domestic use by employees. The permission to dig a bore well is to be taken from the Central Ground Water Authority (CGWA) or from the State Ground water Regulatory Authority.
The Bureau of Indian Standards (BIS) is the National Standards Body of India established under the BIS Act 2016 for the standardization, marking, and quality certificate of goods and for related matters. The standards and marking depends on usage, quality and requirements of the buyers. For the product certification and compulsory registration scheme, you may apply for Licence and BIS Registration through its portal bis.gov.in.
Trademark is to be acquired for manufacturing asbestos board products. To get one, an application has to be made through its online portal and such trademark has to be distinct and innovative. Depending on the distinctiveness the Registrar might approve and provide the certificate of registration of a trademark. After every 10 years you will have to renew the trademark of your firm.
For acquiring the factory license, one has to make an application to the Office of the Directorate of Factories.