M. S. SHAH, J. ( 1 ) THESE applications are filed for the purpose of praying for extension of the time limit for compliance of the directions contained in paragraph 1 35 of the judgment dated August 5, l995 in Special Civil Application no. 770 of 1995 (Pravinbhai jashbhai Patel v. State of Gujarat and Ors. , 1995 (2) GLR 1210 ). In the said decision, this Court had given certain directions to state Government, Gujarat Pollution Control board (GPCB), Ahmedabad Municipal corporation (AMC) and Gujarat Industrial development Corporation (GIDC) (herein- after referred to as, the public authorities) and also the polluting industries in ahmedabad with the object of ensuring that the laws enacted for protection of environment and prevention and control of pollution are complied with. 1. 1. The industries falling in paragraph 135a which were considered to be more polluting were required to be closed down forthwith if they did not have the requisite effluent treatment plants or did not comply with the GPCB norms, [except TDS for which relaxation was granted upto december 31, 1995]. The other polluting industries (including smaller industries having effluent discharge of less than 25,000 litres per day and not manufacturing the items specified in paragraph 135a) were granted time upto December 31, 1995 for setting up common Effluent Treatment Plants and achieving GPCB norms. 1. 2, The public authorities were also granted time upto December 31, 1995 for laying the pipeline for conveying the effluents from Naroda, Odhav, Vatva and Narol to Pirana so that the treated effluent could be mixed with treated domestic sewage at pirana for diluting the TDS so as to achieve the GPCB norm of 2100 mg of TDS per litre of effluent. The expenses for setting up cetps and laying the pipeline to Pirana were directed to be borne by the industries. This Court had also directed the public authorities to make appropriate sites available for disposal of solid waste in consultation with National Productivity Council, by December 31, 1995. ( 2 ) THE present applications were filed by the Gujarat Chamber of Industries and commerce and the public authorities for extension of time-limit of December 31, 1995 for compliance with all the aforesaid directions. By a reasoned order dated May 10, 1996 this Court had granted qualified and conditional extension of the aforesaid time limit upto June 30, 1996. ( 2 ) THE present applications were filed by the Gujarat Chamber of Industries and commerce and the public authorities for extension of time-limit of December 31, 1995 for compliance with all the aforesaid directions. By a reasoned order dated May 10, 1996 this Court had granted qualified and conditional extension of the aforesaid time limit upto June 30, 1996. The above qualified and conditional extension was granted within the following broad framework for maintaining the balance between industrialization and ecology. "i. Even amongst smaller industries falling under para 135b of the aforesaid judgement, the units causing gross pollution must be closed down forthwith. II. The benefit of extension should be given only to those industrial units which comply with all the conditions which would be conducive to control of pollution. (a) The unit must have applied to the gpcb for consent and authorisation under all the relevant enactments and rules. (b) Conditions for setting up of infrastructure for effluent treatment must be satisfied: (i) Primary treatment plant; (ii) Membership of CETP or secondary treatment plant; (iii) laying down of drainage pipeline to pirana. (c) Undertaking to operate the treatment plant already available with the industrial unit and to make contributions for general or common infrastructure facilities for control of pollution. III. The industrial unit must pay all the dues which it is required to pay under the aforesaid judgment of this Court such as (i) payment of compensation for damage caused to the concerned villages in the past; and (ii) contributions towards laying of drainage pipeline to Pirana. IV. There shall be no immunity from criminal or civil liability on account of non- compliance with the pollution control laws. V. More effective monitoring of the aforesaid measure and more effective sanctions to be provided. VI. Appointment of a coordinating committee by the Court for recommending, inter alia, a broad based action plan bringing within its field the industries, their Associations and various Authorities concerned. VII. Extension to be granted subject to monitoring of the progress made by all concerned on the relevant fronts relating to control of pollution. "review of progress made by Associations for setting up Common Ecological management System: ( 3 ) IN the aforesaid order, this court had reviewed the progress made by the Associations of Industries in various industrial estates for setting up of Common Effluent treatment Plant/s (hereinafter referred to as cetp ). "review of progress made by Associations for setting up Common Ecological management System: ( 3 ) IN the aforesaid order, this court had reviewed the progress made by the Associations of Industries in various industrial estates for setting up of Common Effluent treatment Plant/s (hereinafter referred to as cetp ). After the above extension was granted, we have heard the learned Counsel for public authorities as well as the learned counsel for the Associations of Industries in the matter of setting up CETPs, laying down internal collection system for connecting individual units to the CETP in the respective estates and in respect of arrangements being made for disposal of solid waste. A. GIDC Industrial Estate, Vatva : (i) The Association of Industries in vatva Industrial Estate Commenced construction of CETP in December 1995 through Green Society Limited. Although, as per the original schedule, the CETP was scheduled to be commissioned by December 31, 1996, the Association has not been able to achieve the target and has now assured the Court that their CETP will be commissioned by March 31, 1997 to meet the GPCB norms. In the meantime, the association will also complete the work of providing internal collection system by laying pipelines and necessary ancillary works like manholes, sumps and pumping stations by February 28, 1997 as per the assurance given on behalf of the Association. (ii) As per the estimate of the Association, the industries in Vatva will be incurring an expenditure of about Rs. 15. 80 crores fpr setting up CETP and Rs. 7. 6 crores for providing internal collection system. According to the Association, so far it has already collected an aggregate amount of Rs. 10. 41 crores and has already spent an aggregate amount of Rs. 8. 72 crores for constructing the CETP and providing internal collection system. (iii) As far as the site for disposal of solid waste generated by the industrial units in the Vatva Estate is concerned, no progress is made so far. Although the Government has made 4 hectares of land available to the Association and some more land is also going to be made available by acquiring private lands, no progress is made in preparing the sit for disposal of solid waste on account of the fact that the price of the land made available by the Government is not yet finalised. Nonetheless, the association has agreed to see that for a period of about one year, the solid waste generated from the industries in Vatva Estate will be removed to the solid waste disposal site at Odhav being prepared by the Naroda Industries Association and the odhav Industries Association. B. Naroda GIDC Industrial Estate : (i) The Naroda Industries Association has already been given land for setting up cetp at the site which was referred to in our previous order dated May 10, 1996. On account of disputes raised by some of the residents in the nearby area, construction of cetp could not be commenced. Fortunately, however, the said disputes have been amicably resolved at the intervention of the Court and construction has commenced in October 1996 through Naroda enviro Projects Limited. According to the association, construction of CEPT will be completed in March 1997 and CETP will be commissioned on April 30, 1997 and will be operational to meet the GPCB norms by June 30, 1997. Similarly, internal collection system will be completed in January 1997 as per the assurance given on. behalf of the Association. (ii) As per the estimate of the Association, the industries in Naroda will be incurring an expenditure of about Rs. 5 crores for setting up CETP, and Rs. 60 lakhs for providing internal collection system. According to the Association, so far it has already collected Rs. 2. 11 crores and has spent at aggregate amount of Rs. 80 lakhs for CETP and internal collection system. (iii) As far as disposal of solid waste is concerned, Naroda Industries Association is making arrangements with the Odhav industries Association through Naroda enviro Projects Limited for completing preparation of dumping site at Odhav by january 15, 1997 and the work of removing solid waste from Naroda and Odhav Estates and Covering with impervious layer shall be completed by January 31, 1997 as per the assurance given by the above Associations. These Associations will be incurring an expenditure of Rs. 51 lakhs, out of which, they have already spent Rs. 38 lakhs. These Associations will be incurring an expenditure of Rs. 51 lakhs, out of which, they have already spent Rs. 38 lakhs. C. Odhav GIDC Industrial Estate : ml (i) The Association of Industries in odhav has already commenced construction of CETP and civil construction will be over in February 1997; CETP will be commissioned in March 1997 and will be made operational to meet the GPCB norms in june 1997 as per the assurance given on behalf of the Association. The internal collection system will also be completed in january 1997. (ii) According to the Association, industries in odhav will be incurring an expenditure of about Rs. 1. 21 crores for putting up CETP, and about Rs. 88 lakhs for providing internal collection system, it has already collected about Rs. 1. 50 crores and has spent an aggregate amount of Rs. 56 lakhs towards constructing CETP and providing internal collection system. (iii) Arrangements for preparing solid waste disposal site and removal of solid waste from the Estate to the site being prepared at Odhav is already mentioned above in connection with the GIDC Estate, naroda. D. Gujarat Vyapari Mahamandal Industrial estate at Odhav : (i) The Association of Industries in this area had already set up a primary treatment plant which is now being expanded and upgraded for secondary treatment which process is to be completed by January 15, 1997 and CETP will be operational to meet gpcb norms by February 28, 1997 as per the assurance given on behalf of the Association. According to the Association, the area already has internal collection system. (ii) For upgradation of CETP for secondary treatment, the Association will be incurring an expenditure of about Rs. 40 lakhs, for which it has already collected Rs. 24 lakhs and has started incurring expenditure for upgradation of CETP. (iii) However, there is some cause for concern inasmuch as effluent generated by the industries in this area is being collected in a pond which has no outlet. The Association has, therefore, agreed to bear the expenses for laying pipeline from the pond to the common pipeline from Naroda- odhav to Pirana and the AMC has agreed to lay the said pipeline at the expense of the industries. An amount of Rs. 10 lakhs is accordingly agreed to be paid to the AMC by the end of December 1996. An amount of Rs. 10 lakhs is accordingly agreed to be paid to the AMC by the end of December 1996. (iv) Solid waste generated by the industries in this area is also to be removed to the solid waste disposal site at Odhav, as referred to hereinabove and, therefore, solid waste lying in the Estate will be removed to the said site by Jainuary 31, 1997 as per the assurance given on behalf of the Association. The learned Counsel for all these four associations have agreed to bring to the notice of the Court the progress being made by them on fortnightly basis. E. Narol : ( 4 ) AS far as the industries located in narol and surrounding areas are concerned, they can be broadly classified into two categories: (i) Textile Processing Units represented by Narol Textile Processors Association; and (ii) Units manufacturing dyes and chemicals represented by Narol Dyestuff Manufacturers Association. For more than a year, the aforesaid industries or their Association had done nothing towards implementation of the directions given by this Court in Pravinbhais case (supra), except, according to the claims made by some of the industries, that they had improved or upgraded their individual etps. Some of the dyestuff manufacturers in Narol claim to have shifted their units so as to be covered by secondary treatment plants for clusters of dyestuff industries in the areas. The Narol Dyestuff manufacturers Association has reasoned to join the Narol Textile Processors Association for disposal of their effluent to Pirana. In view of the inaction on the part of the industries and their associations in Narol for a considerable period, we propose to deal with them separately and to grant them extension only upto January 31, 1997 for the present. Pipeline to Pirana : ( 5 ) NOTHING was done until recently to ensure that effluent being discharged by these units was collected in any common collection system or conveyed to Pirana. The distance between Narol and Pirana is hardly about 3 kms. It is only in the last two months that the Narol Textiles Processors association claims to have started preparations for common collection plan to collect and then carry effluent from the units in Narol to Pirana. The distance between Narol and Pirana is hardly about 3 kms. It is only in the last two months that the Narol Textiles Processors association claims to have started preparations for common collection plan to collect and then carry effluent from the units in Narol to Pirana. However, the project has made no progress whatsoever and as of now, on behalf of the Ahmedabad municipal Corporation, it is stated that, since the textile processors have only recently submitted their plans for common collection system in November 1996, the said plans will have to be scrutinized by the tata Consultants and the said scrutiny is expected to be over by the end of January 1997, as the plans submitted by the Association are very sketchy plans, a detailed survey will have to be carried out and estimates prepared. Even as regards laying of pipelines from naroda-Odhav-Vatva to Pirana, the industries in these estates have contributed only rs. 2 crores till June 1996. ( 6 ) IT is, therefore, really shocking that the industrial units and their Associations and public authorities have allowed precious time to be wasted and made no progress towards construction of common pipeline to Pirana in spite of specific direction given by this Court in the aforesaid judgment. We, therefore, propose to deal with this issue, separately and immediately notwithstanding the grant of extension by this order. Norms During the Interregnum: ( 7 ) FURTHER, we regret to note that, although the Associations and the industries in respective areas have started putting up their CETPs and although industrial units are expected to send their effluents to the respective CETP for secondary treatment, associations have neither laid down CETP inlet norms nor have they assisted the court in giving appropriate interim directions in the form of conditions to be imposed for granting extension. One of the objects of setting up CETP is to ensure that the small units who cannot afford to provide secondary treatment to their effluent can avail of common facility for secondary treatment, but first they have to give proper treatment to their effluent to such an extent that the CETPs should be able to receive and treat effluents coming from individual industrial units. In absence of such assistance, we have no alternative, but to give appropriate directions to the Associations to issue appropriate instructions to the members of their respective CETPs not having their individual secondary treatment plants, to achieve certain standards for parameters like COD so that when the CETPs become operational, the effluents received into CETPs are within manageable limits for the respective CETPs. Environment Audit Scheme : ( 8 ) THE major problem on the pollution control front is monitoring of a large number of industrial units spread over in different areas of the city of Ahmedabad and its outskirts. Some of the practical difficulties of such monitoring were pointed out by us in paragraphs 32 to 40 of our order dated may 10, 1996. Appointment of a Coordinating committee by the aforesaid order has made some impact in the matter of inculcating the sense of discipline in the industrial units in various industrial estates of Vatva, Odhav, Naroda and in Narol and surrounding areas. However, it cannot be gainsaid that it would not be possible for the Court to have such monitoring done for all time to come, nor would it be proper not to insist that the statutory authorities must discharge their statutory functions. ( 9 ) THE GPCB has been pointing out that there are a large number of industries, running into thousands of them, spread all over Gujarat, but the Board has limited manpower. In view of violation of pollution control norms by industries on a large scale, enforcement agency is not able to take the necessary action against many of them. It has also been realised that the industries and their treatment plants are required to be inspected and monitored from different angles: (i) What is the degree of pollution potential of a particular industry or class of industries; how an individual unit has provided treatment plants and facilities for liquid effluents, air emissions and solid waste; whether the said plants and facilities are adequate and efficacious to achieve pollution control norms; this kind of evaluation can be made by technical experts only after examining the manufacturing activity and effluent treatment process of individual units over a period of time and not by merely taking grab samples on surprise visits. (ii) Whether effluent treatment plants and facilities are actually being operated or not; this aspect involves monitoring in the conventional sense and surprise visits are a must. (iii) Collective monitoring of liquid effluents from common collection systems, common ambient air monitoring and monitoring of disposal of solid waste generated by industries in an estate; for want of adequate time and man- power, GPCB has not been able to effectively examine and evaluate adequacy and efficacy of effluent treatment plants and facilities of a large number of units over a sufficiently long period, nor has it been able to provide for more frequent monitoring of the individual units to find out whether effluent treatment plants and facilities are actually being operated or not. The third part of monitoring is dependent upon available of common infrastructure facilities to be provided by the associations of industries as discussed above. ( 10 ) THE Associations of industries in various industrial estates of Ahmedabad are setting up CETPs with a twofold purpose: (i) For providing secondary treatment to effluents from small polluting industries which cannot afford to have their own individual secondary treatment plants; (ii) For common collection of effluents from all the pollution potential units in the estate so that ultimately the same can be conveniently disposed of from a single exit point. Once CETPs are set up by the Associations, the task of law-enforcing agencies will be comparatively easier, but, nevertheless, on account of the all familiar lack of civic sense, if individual units [particularly those which are causing a high degree of pollution] do not operate their effluent treatment plants in order to save expenses or for other reasons, the operation of the entire cept can be thrown out of gear. Over the last one year, we have seen that on their own associations of industries do find it difficult to discipline their members and, therefore, the hands of the associations also need to be strengthened from outside. ( 11 ) IT is, therefore, of utmost importance to arm the GPCB as well as the Associations of industries in the concerned areas with the necessary information with a view to enforcing discipline amongst the individual units. Once CETPs are set up and substantial majority of industries fall in line, it will then be easier for the GPCB to identify and deal with the relatively smaller number of "recalcitrant units". Once CETPs are set up and substantial majority of industries fall in line, it will then be easier for the GPCB to identify and deal with the relatively smaller number of "recalcitrant units". All Concerned agree that in the ultimate analysis, the real solution lies in industries learning to discipline themselves and internalizing the norms. 11. 1. With the aforesaid objective, we have thought it in the interest of justice to provide for a scheme of environmental audit where qualified technical professionals would become a link between the individual industrial units on the one hand and the gujarat Pollution Control Board and other public authorities as well as Associations of industries on the other hand with the added vital elements of accountability and transparency. The control mechanism through the system of internal and external audit is very much known in the fields of company law and incom-tax. We see no reason why such audit should not be made obligatory in respect of capital provided by the nature. ( 12 ) THE following words of Dr. E. F. Schumacher in Small is Beautiful (A study of Economics as if people matter) are required to be borne in mind while congratulating ourselves for "development":"the illusion of unlimited power, nourished by astonishing scientific and technological achievements, has produced the concurrent illusion of having solved the problem of production. The latter illusion is based on the failure to distinguish between income and capital where this distinction matters most. Every economist and businessman is familiar with the distinction, and applies it conscientiously and with considerable subtlety to all economic affairs - except where it really matters; namely, the irreplaceable capital which man has not made, but simply found, and without which he can do nothing. 12. 1. A businessman would not consider a firm to have solved its problems of production and to have achieved viability if he saw that it was rapidly consuming its capital. How, then, could we overlook this vital fact when it comes to that very big firm, the economy of Spaceship Earth and, in particular, the economies of its passengers? one reason for overlooking this vital fact is that we are estranged from reality and inclined to treat as valueless everything that we have not made ourselves, x x x x x x12. 2. one reason for overlooking this vital fact is that we are estranged from reality and inclined to treat as valueless everything that we have not made ourselves, x x x x x x12. 2. Now, we have indeed laboured to make some of the capital which today helps us to produce a large fund of scientific, technological, and other knowledge; an elaborate physical infrastructure; innumer- able types of sophisticated capital equipment, etc. but all this is but a small part of the total capital we are using. Far larger is the capital provided by the nature and not by man and we do not even recognise it as such. This larger part is now being used up at an alarming rate, and that is why it is an absurd and suicidal error to believe, and act on the belief, that the problem of production has been solved. " (Emphasis supplied.)12. 3. To what extent industries should be allowed to use up capital provided by the nature and at what cost, are larger questions which require indepth study but which need not detain us for the present, since we are proceeding on the principle laid down in the case of Pravinbhai (supra) and in the case of Indian Council for enviro-Legal Action 1996 (5) SCC 281 (para 31) that balance between industrialization and ecology is required to be maintained. Nevertheless, the manner in which the capital provided by the nature is used or abused does warrant closer scrutiny at the hands of qualified professionals. ( 13 ) THE draft scheme for environmental audit was circulated to the State Government in its Forest and Environment Department, gpcb, other public authorities and various Associations of industries through their learned counsel and also to NEERI, nagpur. Mr. A. K. Chakrawarti, the then principal Secretary to the Government of gujarat in Forest and Environment Department, mr. P. V. Bhatt, Chairman of the gpcb, and the Director of Environment, were also heard in respect of the draft scheme and their suggestions have been taken into consideration. Mr. A. K. Chakrawarti, the then principal Secretary to the Government of gujarat in Forest and Environment Department, mr. P. V. Bhatt, Chairman of the gpcb, and the Director of Environment, were also heard in respect of the draft scheme and their suggestions have been taken into consideration. They have also agreed in principle that the Scheme provided by Rule 14 of the Enviornment Protection rules, 1986 which has so far remained in a moribund condition would be modified on the lines of the scheme being framed by this Court and that the public authorities would fully cooperate in implementation of the Environmental Audit scheme being framed by this Court for dealing with the pollution problems in a phased manner. After giving careful consideration to suggestions made by and on behalf of various parties, NEERI, Nagpur and the Pandya Committee, we have finalised the "environmental Audit scheme", which is annexed to this order and shall be treated as a part of this order. ( 14 ) WE would now like to make a reference to some of the provisions of the said scheme. (i) While the judgment in the case of pravinbhai (supra) treated certain items as highly polluting and described them as specified items, during the course of hearing the pollution control matters over a period of more than one year, the GPCB as well as NEERI have indicated scientific classification of industries manufacturing certain products involving use of certain processes which result into an extremely high degree of pollution. We have, therefore, set out in Schedule-I the names of products with their broad classification, which require utmost urgent attention and scrutiny,by appropriate agencies. Many of the said products were already described as specified items in the judgment in pravinbhais case. Manufacture of other items also involves more or less same pollution potential and, therefore, they are quired to be clubbed together. There are also other industries manufacturing products not covered by Schedule I but which have pollution potential. They continue to be subject to all laws relating to prevention and control of pollution and protection of environment. Addition of more items/processes to Schedule I can be considered subsequently as it would not be possible for gpcb or any other agency to make detailed scrutiny of all the pollution potential industries at one go. They continue to be subject to all laws relating to prevention and control of pollution and protection of environment. Addition of more items/processes to Schedule I can be considered subsequently as it would not be possible for gpcb or any other agency to make detailed scrutiny of all the pollution potential industries at one go. For obvious reasons, the CETPs in the various industrial estates have been placed in Schedule I. They will have to submit their first audit reports after their plants became operational. (ii) As far as Schedule I industries are concerned, they are required to be inspected by the National Environment Engineering research Institute, Nagpur (NEERI) in order to see that the said industries have the requisite infrastructure for treating liquid effluents as well as air emissions and solid waste. Some of the items mentioned in schedule I generate pollution which cannot be treated with ordinary biological treatment and are, therefore, required to be treated with different and more specialized equipments and processes. Intensive inspection and detailed scrutiny of a number of such units in Ahmedabad and Baroda by neeri has revealed that the industries who had the inclination to improve have shown substantial improvement after inspection by neeri. Inspection of the Schedule I industries by NEERI, nagpur, is, therefore, made obligatory in the scheme. More items can be added by the GPCB to Schedule I looking to the high degree of their pollution potential, nature of process and other relevant considerations including the quality of effluent. (iii) Schedule II constains the industries which are engaged in certain manufacturing/processing activities generating a considerable degree of pollution, but which are treated separately because the treatment re-facislities required to be employed by them are not so complex as to require inspection by the NEERI. While NEERI, Nagpur, may also be retained as one of the agencies for carrying out inspection of such units, it should also be possible to get inspection done by other agencies like ATIRA. Further appropriate directions in respect of such industries can be given hereafter, but in any case they will have to submit the environmental audit reports. For the present, Schedule II includes the names of those industries which were covered by paragraph 135a (iii) and (iv) of the judgment in Pravinbhais case, and they may be inspected by an appropriate agency such as atira. For the present, Schedule II includes the names of those industries which were covered by paragraph 135a (iii) and (iv) of the judgment in Pravinbhais case, and they may be inspected by an appropriate agency such as atira. More industries can be added to schedule II which would also be required to be audited by external auditors which may also include agencies other than NEERI. : (iv) We have also indicated in the scheme as to what actions can be taken on the basis of the report/s of the environmental auditors and on the basis of the short- comings which may be detected by external auditors like NEERI. The scheme also provides for appropriate directions being given to the concerned industrial units including direction for closure and direction for payment of compensation for affected people and affected areas and for betterment of environment and general monitoring. The principle "polluter pays" is now too well settled a legal principle to require any further elaboration. (Vide the decision of the honble Supreme Court in the case of vellore Citizens Council, 1996 (5) SCC page 647.) During the course of hearing of petitions by and against individual polluting units over the last six months, we have also evolved a principle that the polluting industries cannot be permitted to go on making profits out of pollution. Following observations made by our learned brother r. A. Mehta, J. [the then learned Acting chief Justice] are required to be quoted in this context:"it has also to be seen that by continuing to pollute, the industry shall not profit out of pollution. Whatever they are saving by way of costs, expenses and interest on pollution control and making profits should be set apart and utilised for the welfare of the pollution affected areas and people. The recurring costs which otherwise would be incurred should be notionally worked out and should be deposited for this kind of use for welfare. "we see no reason why a unit which does not meet with the pollution control norms should not be asked to pay a part of its sale proceeds for the above purposes. It is for this reason that the principle "polluter pays" is also incorporated in the Scheme itself. "we see no reason why a unit which does not meet with the pollution control norms should not be asked to pay a part of its sale proceeds for the above purposes. It is for this reason that the principle "polluter pays" is also incorporated in the Scheme itself. (v) We have also clarified that the scheme is in addition to and not in derogation of the powers of the statutory authorities and also that individual industrial units, cluster of industrial units and class of industries are still subject to monitoring, which can be carried out by GPCB, Association of Industries, or monitoring committees appointed by them and/or by the coordinating committee/s, if any, appointed by this Court. Although the scheme is applicable, by virtue of this order, in the first instance to industries in and around ahmedabad, we see no reason why the scheme should also not be made applicable to the industries manufacturing specified items in all other parts of Gujarat. ( 15 ) WE have thought it fit to evolve and apply the scheme as a part of the self- discipline programme for industry and focussing apparatus for the GPCB so that once appliication and implementation of the scheme makes satisfactory progress and this control mechanism continues to be operational for a reasonable period along with other adequated monitoring plans to be formulated by the GPCB, it may no longer be necessary for the court to continue the present proceedings under various enactenactments for protection of environment and prevention and control of pollution. ( 16 ) BEFORE discussing as to on what terms and conditions, extension prayed for on behalf of the industries , should be granted, we would like to suggest that, in view of the reports of NEERI, Nagpur, the pandya Committee and Dr. Modi Committee, in respect of different individual units at Ahmedabad and Baroda and also on general issues pertaining to scenario of pollution control in Ahmedabad or in baroda, it would be better if the GPCB and the appropriate authority in the State Government responds to such suggestions contained in the reports and on the basis of such other material as may be made available to the GPCB and the State Government. 16. 16. 1 For instance, during the course of hearing of a large number of matters during the last one year, it has been found that in the course of manufacturing activity for highly polluting products, certain by-products like spent acids are generated which require costly effluent treatment, if they are to be discharged. Industries are, therefore, tempted to dispose them of clandestinely without giving them requisite treatment. However, such by-products can be used as raw-materials for manufacturing other chemical products. Instances were brought to the notice of the Court where in some cases such by-products were found to be genuinely being sold to other units for the purpose of manufacturing certain chemical products, but in some other cases, byproducts were being clandestinely disposed of. In order to deal with such a situation, the State Government, GIDC and AMC may encourage setting up within the same industrial estate the industries which can utilise such by-products as raw-materials for manufacturing other chemical products without generating any significant pollution in the process. Such an attempt should solve the problem of damage to environment as well as the cost of treatment of hazardous by-products to individual industrial units. 16. 2 Similarly, in view of the fact that neeri, Nagpur, has been sending inspection teams to various units in Ahmedabad and Baroda and more; and more such units are going to be visited by NEERI, Nagpur, it would be appropriate if Government and gpcb evolve a scheme for conducting courses for technical personnel from industries and for environmental auditors, where experts from NEERI, Nagpur, GPCB and other institutions may be invited. 16. 3 The GPCB shall also have to formulate plans for monitoring from different angles as discussed in paragraph 9 above. While plans for collective monitoring of treatment of liquid effluents and solid waste disposal would be dependant upon availability of common infrastructure facilities, collective monitoring of ambient air in different areas of industrial estates can be started straightaway. ( 17 ) IN view. While plans for collective monitoring of treatment of liquid effluents and solid waste disposal would be dependant upon availability of common infrastructure facilities, collective monitoring of ambient air in different areas of industrial estates can be started straightaway. ( 17 ) IN view. of the aforesaid discussion, the time limit of December 31, 1995 in paragraph 135 of this Court in the case of pravinbhai Jashbhai Patel (supra) deserves to be further extended till March 31, 1997, subject to the clarification that the benefit of this extension will be available to only those units who have complied with all the conditions stipulated in paragraph 49 of our order dated May 10, 1996, as modified hereunder: (i) Condition No. 2. 2b: membership of CETP (condition No. 2. 2b) shall not be treated as an alternative to having secondary treatment plant [condition (2. 2a)] in respect of the units which have already set up or are required to set up their own secondary effluent treatment plant/s, but membership of CETP in the concerned area shall be obligatory for all the pollution potential units included in the list of 756 industries irrespective of the fact whether they have their own secondary effluent treatment plant/s or not. This modification is necessary for three reasons: Firstly, even after proper secondary treatment is given by such units, treated effluent would have to be sent to a system of common collection and disposal. Sec ondly, this would facilitate GPCB and other appropriate agencies in monitoring proper implementation of pollution control norms by more frequent visits of the common collection systems. Thirdly, as a part of the self-discipline mechanism, the associations of industries in the concerned area through cetp would also be able to detect gross deviations of norms by individual units. In short, all the pollution potential industrial units in Naroda, Odhav and Vatva must send their effluents to CETP in the respective industrial estates after proper treatment in their own treatment plants. Of 2 course, this obligation of sending effluent to CETP will not be applicable to Reliance industries Limited, since its daily effluent discharge is 1 crore litres or more, whereas capacty of CETP plant in Naroda [where reliance Industries Limited is situate] is only about 30 lakh litres. It would, therefore, not be possible for the CETP in naroda to handle such huge quantity from reliance Industries Limited. It would, therefore, not be possible for the CETP in naroda to handle such huge quantity from reliance Industries Limited. It goes without saying that Reliance Industries Limited required to continue to give full treatment to its effluent before sending it to pipeline to Pirana. As far as the industrial units in Narol area are concerned, they will have to abide by the common collection system being separately worked out for them. (ii) Condition No. 3. 2 : solid waste generated from all the industrial units within Naroda, Odhav and Vatva areas in the past and till January 31, 1997 shall be removed to the solid waste disposal site at Odhav latest by February 28, 1997, and all the industrial units shall pay their contributions for removal of solid waste to their respective associations as and when demanded by the associations. (iii) Condition No. 4. 3 : all the units shall pay towards cost of construction of drainage line to Pirana and other ancillary works, contribution at the rate of Rs. 4 per litre of the effluent discharged by it as per Condition No. (4. 3) of our order dated May 10, 1996, and any further amount as may be decided hereafter. In other words, each unit shall pay Rs. 4/- per litre of effluent discharged by it to the Ahmedabad Municipal Corporation directly or through the Association of Industries in the concerned area latest by January 31, 1997, including the amount, if any, paid earlier under the aforesaid head. (iv) Condition No. 3. 1 b : all the units shall achieve such norms of cod and other parameters as will be decided by the Associations of industries in the respective areas as per the instructions which shall be issued by the Association/s by February 15, 1997. ( 18 ) WE, accordingly, extend the time- limit stipulated in paragraph 135 of the judgment in Pravinbhais case till March 31, 1997, subject to the conditions mentioned in paragraph 49 of our order dated may 10, 1996 with modifications made in the preceding paragraph. For the industries in Narol, the time-limit is extended only upto January 31, 1997. All the industrial units in Schedules I and II to the Environmental audit Scheme annexed to this order are directed to comply with the said scheme. For the industries in Narol, the time-limit is extended only upto January 31, 1997. All the industrial units in Schedules I and II to the Environmental audit Scheme annexed to this order are directed to comply with the said scheme. ( 19 ) BENEFIT of the present extension shall not be applicable to any unit which does not comply with the aforesaid conditions, and to the units which are closed under the specific orders of the Government or of the court. ( 20 ) WE direct that all the industrial units at Naroda, Odhav, Vatva and Narol who discharge industrial effluents without meeting with the GPCB norms and who have not complied with the conditions mentioned in our order dated May 10, 1996, as Continued /modified by this order, shall stop manufacturing activities with effect from february 1, 1997. The State of Gujarat, gpcb, GIDC, AMC, and GEB/aec are directed to disconnect electricity and water supply to all such units by February 10, 1997. . ( 21 ) THE State Government and GPCB are directed (a) to publish the said Scheme in two english and Gujarati daily newspapers having wide circulation in Gujarat for information of all concerned by January 10, 1997 and to invite applications for being recognized as "environmental Auditors" by February 10, 1997 and to prepare the list of recognized Environmental Auditors as early as possible and latest by February 28, 1997; (b) to prepare by February 15, 1997, the format of the Environmental Audit Reports including the pro forma statement to be prepared by the Labour Commissioner and the Chief Inspector of Factories in consultation with the National Institute of Department of Health; (c) to implement the Environmental Audit scheme which is annexed to this order and to report compliance to this Court from time to time; (d) to formulate plans for monitoring of industries as per, inter alia, discussion in paragraphs 9 and 16 of this order; (e) to consider the Scheme for providing positive incentives for setting up units using by-products like spent acids as raw- materials for manufacturing other products as discussed in paragraph 16 of this order. ( 22 ) ASSOCIATIONS of Industries in Vatva, naroda, Odhav and Gujarat Vyapari Maha mandal Estate at Odhav are directed to fix the norms for receiving effluents from individual units [not having secondary treatment plants] into respective CETPs. ( 22 ) ASSOCIATIONS of Industries in Vatva, naroda, Odhav and Gujarat Vyapari Maha mandal Estate at Odhav are directed to fix the norms for receiving effluents from individual units [not having secondary treatment plants] into respective CETPs. The instructions containing such norms shall be issued to the members of CETPs by february 15, 1997, and shall be produced on the record of these proceedings on the next date of hearing. A copy of this order shall be sent to NEERI, Nagpur and to ATIRA. The registry shall immediately send this order to Government and to GPCB. S. O. to January 13, 1997 ENVIRONMENTAL AUDIT SCHEME FOR INDUSTRIES MANUFACTURING SPECIFIED PRODUCTS 1. This Scheme shall be called "the Scheme for Environmental Audit of Industries Manufacturing Specified Products". 2. Definitions : In this Scheme, unless the context otherwise requires (a) "association of Industries" shall mean Association of Industries in the concerned estate/area where a particular industrial unit is situate. (b) ATIRA shall mean Ahmedabad Textile Industries Research Association. (c) "auditors" shall mean the team of Environmental Auditors recognized by the Gujarat Pollution Control Board (GPCB) under this Scheme. (d) "audit Report" or "report" shall mean Environmental Audit Report required to be submitted under this Scheme. (e) "environmental Management Systems" shall include treatment plants, equipments and processes for and management of liquid effluents, air emissions and solid/semi-solid waste. (f) "neeri" shall mean National Environmental Engineering Research Institute, Nagpur. (g) "schedule" means Schedule to this Scheme. (h) "specified Industries" shall mean industries manufacturing/processing anyone or more of the products mentioned in Schedule I or Schedule n to this Scheme. Applicability of Scheme : 3 (a) This scheme shall apply to all the industrial units manufacturing and/or processing any one or more of the products metioned in Schedule I or Schedule II to this Scheme. 3 (b) Any product the manufacture of which consumes the same or substantially the same raw-materials as the raw-materials consumed for the manufacture of any of the aforesaid items mentioned in Schedule I or Schedule II, but for which different commercial or chemical name is used, although the finished product is same or substantially similar, shall also be considered to be a specified product within the meaning of this Scheme. 3 (c) An industrial unit which is manufacturing or processing any of the specified products under orders of trial production (whether passed by this Court or any authority) is also covered by this Scheme. 3 (d) An industrial unit engaged in manufacture of any specified product, which has already obtained consent or provisional consent from the GPCB is also covered by this Scheme. Environmental Auditors : 4 (a) The Gujarat Pollution Control Board (GPCB) shall publish a list of Recognized Environmental Auditors with details about the names, addresses and technical qualifications of members of each Team of Auditors. 4 (b) Each team of Auditors shall comprise of (i) a person possessing a degree in Environmental Engineering awarded by a recognized University in India or abroad, (ii) a person possessing a degree in Chemical Engineering awarded by a recognized University in India or abroad, (iii) a person possessing a degree in Chemistry awarded by a reconnized University in India or abroad, (iv) a person possessing a degree in Micro Biology/bio-Chemistry awarded by a University recognized in India or abroad, (iv) a person possessing a degree in Micro Biology/bio-Chemistry awarded by a University recognized in India or abroad. The Team shall have at least two members possessing anyone or more of the aforesaid qualifications, with a minimum of one years experience in environmental management systems related to chemical industry. 4 (c) The GPCB may periodically revise the list of recognized auditors. 4 (d) The function of the Auditors shall be preparing and submitting audit reports on the Environmental Management Systems of individual units manufacturing/processing specified products. First Audit Report & Subsequent Externai Audit: 5 (a) Each of the specified industries shall submit to the GPCB, audit report/s in triplicate regarding adequacy and efficacy of its Environmental Management Systems for its products in the light of: (i) statutory requirements under (a) the Water (Prevention and Control of Pollution) Act, 1974; (b) the Air (Prevention and Control of Pollution) Act, 1981; (c) Environment Protection Act, 1986; (d) the Hazardous Wastes (Management and Handling) Rules, 1989; (e) Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989; and (f) The Public Liability Insurance Act, 1991. (ii) (a) the terms and conditions of the Letter of Consent/provisional Consent/noc issued by the GPCB in favour of the Unit; (ii) (b) other conditions which the GPCB may stipulate by any general Order or Circular or in any special Order for a class of industries or for the particular industrial unit concerned; (iii) relevant literature published by the NEERI, the CPCB, the GPCB and other authoritative literature on the subject; (iv) inspections and monitoring made by the auditors, composite samples collected by the auditor for running batches and samples collected on surprise visits including samples collected at different stages of effluent treatment and their analysis reports prepared by the Auditors; (v) figures of production of final products, by-products, consumption of raw materials, figures regarding use of water, electricity and other fuel and other material mentioned in the format of the Environmental Audit Report to be prepared by the GPCB; (vi) complaint/s, if any, received by the GPCB or the auditor or the Coordinating Committee appointed by the Court regarding the pollution being caused by the Unit; (vii) orders, if any, passed by this Court, in respect of any specified industry or class of specified industries. 5 (b) Copies of each audit report shall also be submitted by specified industry to the association of industries and to the Chairman of the Co-ordinating Committee (if any) appointed by this Court: Provided that, having regard to the nature of the report and the confidentiality of the manufacturing process, the GPCB may specify as to which parts of such report shall not be submitted to the association of industries and the Chairman of the Coordinating Committee. 5 (c) The audit report shall be submitted by each specified industry as per the time-schedule given in Schedule I or Schedule to this Scheme. 6 (a) Upon the audit reports being submitted to the GPCB as aforesaid, the GPCB shall request the National Environmental Engineering Research Institute (NEERI), Nagpur, to inspect the manufacturing processes and the Environmental Management Systems of the specified industries in Schedule I which have submitted their audit reports and to take samples from the industries for analysis and to verify the reports of the auditors: By September 30, 1997 inspection of all such units shall be completed. It shall be open to NEERI, Nagpur to associate with its inspection team such other technical personnel, (including officers from the Central Pollution Control Board and Gujarat Pollution Control Board) as it may deem fit. It will be open to the NEERI, Nagpur to make such recommendations as it may deem fit for the purpose of improvement/upgradation of Environmental Management Systems and also in manufacturing plants/facilities/processes in order to improve the performance of the Unit in the matter of preventing pollution or for achieving the prescribed norms for control of pollution. 6 (b) Similarly, the GPCB shall request an appropriate agency such as the ATIRA to inspect the manufacturing processes and the Environmental Management Systems of the specified industries in Schedule which have submitted their audit reports. The preceding sub-clause shall mutatis mutandis apply to such appropriate agency. 6 (c) Each specified industry falling in Schedule I shall initially deposit with the GPCB by February 28, 1997 an amount of Rs. 1,00,000/- for the purpose of inspection by NEERI, Nagpur and shall thereafter be liable to pay such further amount to meet with the costs of such inspections, as may be directed by this Court. 6 (d) Each specified industry falling in Schedule n shall initially deposit with the GPCB by March 31, 1997 an amount of Rs. 25,000 for the purpose of Inspection by an appropriate agency and shall thereafter be liable to pay such further amount to meet with the costs of such inspections as may be directed by this Court. 6 (e) The GPCB shall pay the NEERI and other appropriate agency inspection fees at the aforesaid rates or at such rates as may be directed by this Court. 7. Clauses 5 and 6 of this Scheme shall not apply to the specified industries which have already been inspected by the NEERI, Nagpur after 1-1-1996. Such specified industries shall, however, be liable to be dealt with in light of the report/s submitted by the NEERI in respect of the said industries. Periodical Audit Reports: 8 (a) Each specified industry shall have its Environmental Management Systems frequently inspected by auditors and shall submit to the GPCB periodical reports, in triplicate, of environmental audit (in the format to be prescribed by the GPCB) prepared by the concerned auditors who have inspected the unit. Periodical Audit Reports: 8 (a) Each specified industry shall have its Environmental Management Systems frequently inspected by auditors and shall submit to the GPCB periodical reports, in triplicate, of environmental audit (in the format to be prescribed by the GPCB) prepared by the concerned auditors who have inspected the unit. The industry shall also submit copies of such reports to the association of industries and to Chairman of the Coordinating Committee, if any, appointed by this Court. Such periodical reports shall be submitted as per the time schedule mentioned in Schedule I/schedule II to this Scheme. 8 (b) The GPCB shall issue a circular and it shall also add/stipulate a condition in the existing/future consent orders for submission of the periodical environmental audit reports as aforesaid. Format of Audit Reports: 9 (a) The GPCB shall, in consultation with NEERI, Nagpur prepare Formats of the First audit report and periodical audit report which shall, inter alia, state (i) Whether the industry meets with the requirements laid down by or under the aforesaid statutory provisions, if no, the extent of deviation from the norms; (ii) Whether the industry has complied with the terms and conditions of the consent/provisional consent/noc issued by GPCB in favour of the Unit with reference to each term and condition; (iii) Whether the industry has complied with the terms and conditions of any general or special circular/order of the GPCB; (iv) Whether the industry has taken measures for safety of, and prevention of health hazards to, the labour employed in the specified industries including their working conditions; and whether the industry has complied with the relevant provisions of the Factories Act and the Rules made thereunder. For this purpose, the auditors shall take into consideration the pro forma Statement to be prepared by the Labour Commissioner and the Chief Inspector of Factories in consultation with the National Institute of Occupational Health. 9 (b) It shall be open to the auditors to make such recommendations, as they may think fit for improvement of the existing Environmental Management Systems but such recommendations shall not bind the GPCB in any manner. 9 (b) It shall be open to the auditors to make such recommendations, as they may think fit for improvement of the existing Environmental Management Systems but such recommendations shall not bind the GPCB in any manner. Consequences of Failure to File Audit Report : 10 (a) If any specified industry does not submit its first or any periodical audit report as per the time schedule prescribed in this Scheme, it shall stop all manufacturing and processing activities and the GIDC/aec/geb shall disconnect the supply of water and electricity to such a unit. The GPCB shall intimate the particulars of such defaulting units, including address and electricity meter number to the GIDC/aec/geb within two weeks from the date of expiry of the time-limit stipulated for filing of the first/periodical environmental audit report. The GIDC/aec/geb shall comply with such intimation and disconnect water/electricity supply within one week of receipt of such intimation. Action/directions upon Filing of Audit Reports : 11 (a) Where the audit report of the particular unit indicates that the industry does not meet with the requirements as prescribed by or under the aforesaid Statutory provisions, and that the industry has not complied with the terms and conditions of the consent/provisional consent/noc and those contained in any general or special circular/order of the GPCB, the industry shall be liable to be subjected to appropriate directions of this Court and of statutory authorities including direction for closure and/or for payment of compensation for affected people and areas, betterment of environment and general monitoring. The BPCB shall place before the Court a report about the extent of compliance with pollution control norms by each sub-class of specified industries and each industry in that sub-class shall be liable to be subjected to appropriate directions including direction for closure and/or direction for payment of compensation. 11 (b) Where the audit report is found to be incorrect or inaccurate in respect of material particulars for an industry by the NEERI, GPCB or any other appropriate agency, which may be appointed by this Court or by the GPCB, that industry shall be liable to be subjected to appropriate directions of this Court and other statutory authorities, including direction for closure of that industry and/or for payment of compensation. 11 (c) The aforesaid actions shall be taken without prejudice to any other criminal or civil liability which the unit might have exposed itself to. 11 (c) The aforesaid actions shall be taken without prejudice to any other criminal or civil liability which the unit might have exposed itself to. 11 (d) The auditors whose report is found to be incorrect or inaccurate in respect of material particulars, by the NEERI, the GPCB or any other appropriate agency, which may be appointed by this Court, or by the GPCB shall be liable to be derecognized by the GPCB or by this Court and the reports of the same auditors in respect of other industrial units may also be liable to be rejected. 11 (e) The aforesaid actions shall be taken without prejudice to any other criminal or civil liability to which such auditors might have exposed themselves to. General : 12 (a ). Any industry hereafter applying for consent or seeking permission for trial production for manufacturing any of the specified items mentined in Schedule I, shall have to get its Environment Management Systems inspected by the NEERI, Nagpur regarding adequacy and efficacy thereof. 12 (b ). Any industry hereafter applying for consent or permission for trial production for manufacturing/processing any of the products mentioned in Schedule II shall have to get its Environmental Management Systems inspected by any appropriate agency appointed by this Court or by the GPCB, regarding adequacy and efficacy thereof. 13. This Scheme is in addition to and not in derogation of the powers of the GPCB and the State Government under existing provisions of the various enactments and rules relating to prevention and control of pollution and protection of environment. 14. This scheme is also without prejudice to any action that may be taken against any individual industrial unit, cluster of units or a class of industries, on the basis of, inter alia, monitoring which may be carried out by the GPCB, associations of industries or their monitoring committee and/or by the Committee/s if any, appointed by this Court. 15. The GPCB or this Court may add any further products/processes to Schedule I or Schedule II and may add any further clause/s to this Scheme for more effective implementation of the measures for protection of environment and prevention and control of pollution. SCHEDULE - I Environmental Audit Scheme as per order, dated 20-12-1996 CLASSIFICATION OF PRODUCTS DATE OF DATE OF PRODUCTS & SUBMITTING SUBMITTING INDUSTRIES FIRST E. A. PERIODICAL REPORT E. A. REPORTS 1 2 3 4. SCHEDULE - I Environmental Audit Scheme as per order, dated 20-12-1996 CLASSIFICATION OF PRODUCTS DATE OF DATE OF PRODUCTS & SUBMITTING SUBMITTING INDUSTRIES FIRST E. A. PERIODICAL REPORT E. A. REPORTS 1 2 3 4. 5 I DYE- INTERMEDIATES: (A) Napthalene based and any Diazo Napthol March 31, 1997 July 31 other compund having Sulphonic Acid November 30 more than two benzene H-Acid March 31 rings attached together (like H-Acid, Beta Napthol) (B) Napthalene Derivative Bon- Acid March 31, 1997 July 31 based (like Gamma Acid, C-Acid November 30 K-Acid, Bon Acid, J-Acid) K-Acid March 31 J-Acid NMJ STA Tobias Acid (C) Benzene Based 4-CAP April 30, 1997 August 31 PAABSA December 31 PABA April 30 (D) Nitro Cholora Benzene Anthralinic Acid April 30, 1997 August 31 Based (Like NADPSA, NADAPSA December 31 ADPSA) APDA April 30 ONCBSA (E) Aniline Based DABSA April 30, 1997 August 31 (Like VS, Pyrazolone, DASA December 31 FC Acid, DASA) DASDA April 30 NAPSA OAPSA OPDA SPCP v. s. II DYES : (A) Reactive and direct DT-Blue May 31, 1997 September 30 (except CPC based) January 31 May 31 (B) Reactive and direct RT-Blue May 31, 1997 September 30 (CPC based) January 31 May 31 (C) VAT Vat Dye May 31, 1997 September 30 Vatindigo Blue January 31 May 31 III PIGMENTS: (A) Metallic Pthalo Cyanine Alpha blue May 31, 1997 September 30 based (like CPC Blue, CPC-Blue January 31 CPC green, Alpha blue CPC-Green May 31 blue, etc. except Beta blue) IV UNITS June 30, 1997 October 31 MANUFACTURING February 28 CHEMICAL PRODUCTS June 30 NOT FALLING IN ANY OF THE ABOVE CATEGORIES, BUT DISCHARGING EFFLUENT OF ONE LAKH LITRES OR MORE PER DAY V COMMON EFFLUENT August 31, 1992 December 31 TREATMENT PLANT April 30 RUN ON BEHALF OF August 31 ASSOCIATION OF INDUSTRIES SCHEDULE - II Environmental Audit Scheme as per order, dated 20-12-1996 CLASSIFICATION OF PRODUCTS DATE OF DATE OF PRODUCTS & SUBMITTING SUBMITTING INDUSTRIES FIRST E. A. PERIODICAL REPORT E. A. REPORTS 1 2 3 4 5 1. Textile Processing March 31, 1997 July 31 Industries with November 30 Carbonizing Units March 31 2. Textile Processing April 30, 1997 August 31 Industries having a daily December 31 discharge of one lakh April 30 litres of effluents 3. Stainless Steel rolling March 31, 1997 July 31 and re-rolling Mills November 30 March 31 order accordingly. .