Annual fees explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Paragraphs 10 to 18 of the Water consent guidelines cover the grant of consent to establish (Form I) and to operate (Form II), refusal and cancellation on twelve grounds, the national and State monitoring committees, the portal, additional conditions and violations. The Second Schedule sets the annual fee ceiling. The 2026 amendment (G.S.R. 63(E)) added deemed consent for micro and small units, allowed Registered Environment Auditors, omitted renewal (paragraph 12) and revised the portal paragraph.
These guidelines are current as amended up to the Amendment Guidelines, 2026 (G.S.R. 63(E), 23 January 2026) and operate where the Water (Prevention and Control of Pollution) Amendment Act, 2024 applies. Later amendments, CPCB guidelines and State Board orders should be checked. If you need help with a water consent file, see our compliance documentation service.
Consent to establish is applied for in Form I and consent to operate in Form II with compliance reports (paragraphs 10 and 11). Paragraph 12 on renewal is omitted. Consent may be refused or cancelled on twelve grounds after a hearing and with written reasons (paragraph 13). The Second Schedule fixes the annual fee ceiling by capital investment and category: CF = CI × SF × PIF.
Paragraph 10: consent to establish
| Sub-paragraph | Provision |
|---|---|
| (1) | Application in Form I under section 25, with particulars and the fee, for a new unit and for expansion, modernisation or change of products or process before commissioning |
| (2) and (3) | The unit must comply with the location criteria in paragraph 9; no unit may be set up in non-conforming, restricted or prohibited areas |
| (4) | As substituted in 2026: the Board may depute officers to inspect, or the proponent may engage a Registered Environment Auditor |
| (5) | Consent is granted under section 25(4) with conditions based on the report under sub-paragraph (4), "by the officer deputed by the State Board or by the Registered Environment Auditor engaged by the Project Proponent, as the case may be": control equipment of approved specifications installed and operated; kept in good running condition; the outlet, wherever necessary, of approved specifications established; and other conditions the Board specifies |
| (6) | Conditions are complied with within the period the Board fixes |
| (7) | Inserted in 2026: deemed consent to establish for Micro and Small units in notified Industrial Estates or areas on submission of the self-certified application in Form I |
Paragraph 11: consent to operate
Once the unit is established with the pollution control system and ready to operate, the occupier must obtain consent to operate (paragraph 11(1)). The application is in Form II with the fee, a compliance report on the conditions of the consent to establish and, if applicable, on the environment clearance (11(2)). Sub-paragraph (3) was substituted in 2026 to allow a Registered Environment Auditor, and sub-paragraph (4) lets consent be granted on the report of the officer or the auditor, with conditions: approved control equipment operated; existing equipment not altered or replaced without approval; equipment kept in good running condition; and the outlet, where necessary, operated and maintained as approved and connected to an online continuous emission monitoring system, as applicable. Sub-paragraph (6), which required the consent to specify its validity, was omitted, because consent to operate is now valid till cancelled under paragraph 4(3).
Paragraph 12: renewal omitted
"Paragraph 12 shall be omitted." The renewal route, with its compliance reports, environmental statement, annual returns and declaration of no change, is gone.
Paragraph 13: refusal and cancellation
The State Board may cancel consent before expiry of the period for which it is granted if the conditions are not fulfilled (the words "or refuse the renewal of the consent expiry" were omitted in 2026). Consent may be refused or cancelled on these grounds: (i) location criteria not satisfied; (ii) non-compliance of consent conditions; (iii) non-compliance of conditions of prior environment clearance; (iv) variation in process and operations; (v) non-compliance of the effluent discharge standards and failure to upgrade control equipment or other prescribed equipment; (vi) non-compliance of court directions, guidelines, notifications and standard operating procedures; (vii) accidental discharges causing grave injury to the environment or human health; (viii) an accident damaging existing systems and the environment; (ix) non-payment of any prescribed fee, environmental compensation or bank guarantee required under any law; (x) a unit proposed or set up in a prohibited area; (xi) incomplete or false information or concealment of material facts; and (xii) violation of other applicable rules and regulations.
Before refusing or cancelling, a reasonable opportunity of being heard must be given, and the reasons must be recorded in writing and communicated, with necessary directions. An order refusing or cancelling consent can be challenged by appeal under the Water Act; see sections 28 and 29 and, on refusal and withdrawal of consent, sections 26 and 27.
Paragraphs 14 to 18: committees, portal, conditions and violations
- Paragraph 14: a National Level Monitoring Committee chaired by an Additional Secretary or Joint Secretary in the Ministry, with the Central Board's Member Secretary as Member Secretary and five State Board Member Secretaries by rotation for three years; it meets at least once every quarter.
- Paragraph 15: a State Level Monitoring Committee chaired by the State's environment Secretary, with the State Board's Member Secretary, an officer of the State Environment Department as Member Secretary and the Central Board's Regional Director; it disposes of matters presented before it and meets at least once every calendar month.
- Paragraph 16 (substituted in 2026): the Central Board, in consultation with State Boards, develops an online portal preferably within six months and not later than one year from notification; once it is operational, applications under section 25, verification, site inspection, refusal or cancellation are processed only through it; until then existing arrangements continue; it is a single point data repository; and the Central Board may charge five per cent of the fee received on consent to establish and operate as a service fee, credited to its fund under section 36 of the Act.
- Paragraph 17: the Board may add conditions according to local conditions and policies but may not relax any condition or standard in the guidelines.
- Paragraph 18: failure to comply makes the person liable to action under the Act. No penalty amount is restated here; see the sister articles on sections 45A to 45D.
The Second Schedule: annual fee ceiling
The Second Schedule, like paragraph 5, is the upper limit for State fees. It follows the Air Schedule closely.
| Part | Content |
|---|---|
| A.1 | Seven capital investment slabs from Rs 1 crore and below to above Rs 1000 crore; a Note (inserted 2026) defines Capital Investment as fixed assets including pollution control equipment, without depreciation, and excluding running costs, with ten times annual lease value or guidance value, whichever is higher, for leased land or buildings |
| A.2 | CF = CI × SF × PIF; scale factor from 0.100 per cent (first slab) down to 0.010 per cent; pollution index factor 1.00, 1.50 and 2.00 for green, orange and red; higher slabs built on the maximum fee of the preceding slab plus the difference times SF times PIF; minimum Rs 5,000, Rs 7,500 and Rs 10,000 |
| A.3 | Local bodies and infrastructure projects: formula for consent to establish; consent to operate by sewage generated or handled, from up to 10 KLD (Rs 5,000 for local bodies and residential; Rs 7,500 for others) upwards |
| A.4 | Mining: CF = CC × MF × AF × TMF, minimum Rs 5,000 a year |
| A.5 | Coffee pulping: BF of Rs 2,500 a year times 1.25 (wet) or 1.00 (dry) |
| A.6 | Aquaculture: nil up to 5 ha; Rs 5,000 for 5 to 25 ha; Rs 25,000 above 25 to 100 ha; Rs 1,00,000 above 100 ha |
| A.7 | Incentives for units that go beyond standards, identified and rewarded at the State Board's discretion after consulting the Central Board; no amount printed |
| B | Fee for consent to establish: not more than twice the annual fee |
| C | Fee for consent to operate: not more than the annual fee multiplied by the period in accordance with paragraph 5(1) (as amended in 2026; earlier, the validity under paragraph 4(3)) |
Compared with the Air Schedule, the Water Schedule has no separate item for plants whose only source is a diesel generator. The formula and factors are explained, with a worked example, in the Air Schedule article.
Example
Cauvery Aqua Farms holds a lease of 30 hectares, so its annual fee ceiling under item A.6 is Rs 25,000. After it obtains consent to operate, the Board notes persistent exceedance of effluent discharge standards and issues a notice under paragraph 13 on ground (v). It hears the farm and, after the farm upgrades its treatment pond, decides not to cancel.
Need help with Water consent?
Our compliance documentation team can help you prepare Forms I and II and check the fee ceiling.
Key takeaways
- Form I for consent to establish; Form II for consent to operate; deemed consent to establish for micro and small units in notified estates.
- Paragraph 12 renewal is omitted; consent to operate continues until cancelled.
- Twelve grounds for refusal or cancellation, a hearing and written reasons are required.
- The Second Schedule is a ceiling: CF = CI × SF × PIF, with item-wise fees for local bodies, mining, coffee pulping and aquaculture.
- Consent to establish is capped at twice the annual fee; consent to operate at the annual fee times the paragraph 5(1) period.
Read next
- Paragraphs 1-9 of the Water consent guidelines
- The Schedule to the Air consent guidelines: fee methodology
- Sections 28 and 29 of the Water Act: appeal against consent orders
- How to cancel or surrender pollution control CTE and CTO
Disclaimer: Based on the environment rules, guidelines and notifications named above as published in the Gazette of India, read with every amendment notified up to 3 October 2026 that the article names (consolidated reading texts from the CPCB 2021 compilation and the Goa State Pollution Control Board 2025 compilation were checked against the amending notifications), as consulted on 3 October 2026. Later amendments, CPCB guidelines, State Board orders and fees should be checked. This article is general information, not legal advice; check the official text before acting.