Schedule 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.
The Second Schedule to the Air consent guidelines is the fee ceiling that paragraph 5 refers to. It fixes an annual fee by a formula built on capital investment and the plant's colour category, with separate methods for local bodies and infrastructure projects, mining, coffee pulping, aquaculture and plants whose only source of air pollution is a diesel generator. The 2026 amendment added a definition of "Capital Investment" and tied the consent to operate fee to the period chosen under paragraph 5(1).
These guidelines are current as amended up to the Amendment Guidelines, 2026 (G.S.R. 62(E), 23 January 2026). Each State fixes its own fee within this ceiling, and later amendments, CPCB guidelines and State orders should be checked. For help in working out the fee for a project, see our compliance documentation service.
The annual consent fee ceiling for an industrial plant is CF = CI × SF × PIF: capital investment, multiplied by a scale factor that falls as investment rises, multiplied by a pollution index factor of 1.00 (green), 1.50 (orange) or 2.00 (red) (Part A, item 2). Consent to establish may cost no more than twice the annual fee (Part B). Consent to operate may cost no more than the annual fee multiplied by the period under paragraph 5(1) (Part C, as amended in 2026). States may charge less.
Where the Schedule fits
Paragraph 5 says the State fee "shall not be more than that specified in the second schedule" and that the Schedule amount is "the upper limit". The Schedule is therefore a ceiling, not a price. For the validity and the one-time fee, see paragraphs 4 and 5. The Water counterpart is explained in paragraphs 10 to 18 of the Water consent guidelines.
Part A, item 1: capital investment slabs
Seven slabs apply: Rs 1 crore and below; above Rs 1 crore up to Rs 10 crore; above Rs 10 crore up to Rs 50 crore; above Rs 50 crore up to Rs 250 crore; above Rs 250 crore up to Rs 500 crore; above Rs 500 crore up to Rs 1000 crore; and above Rs 1000 crore.
What counts as "Capital Investment" (note inserted in 2026): the investment made on fixed assets, that is land, buildings including staff quarters and guest house within industrial premises or townships, and plants and machinery or equipment, including the cost of investment on pollution control, without depreciation. Running operation and maintenance cost and other revenue expenditure are not included. For an industry operating on leased land or buildings or other assets, ten times the annual lease value is taken as equivalent to the land cost, or the guidance value of the property or land, whichever is higher.
This definition matters because the fee base is the capital cost, not turnover. A Chartered Accountant's certificate about capital investment is among the mandatory documents listed in the First Schedule for consent to operate.
Part A, item 2: the industrial plant formula
The annual fee is "determined based on the capital investment and categorization of the industrial plant" using:
CF = CI × SF × PIF, where CF is the annual fee for consent in rupees, CI is capital investment in rupees, SF is the scale factor and PIF the pollution index factor.
| Slab of capital investment | Scale factor (SF) |
|---|---|
| Rs 1 crore and below | 0.100 per cent |
| Above Rs 1 crore to Rs 10 crore | 0.080 per cent |
| Above Rs 10 crore to Rs 50 crore | 0.060 per cent |
| Above Rs 50 crore to Rs 250 crore | 0.040 per cent |
| Above Rs 250 crore to Rs 500 crore | 0.030 per cent |
| Above Rs 500 crore to Rs 1000 crore | 0.020 per cent |
| Above Rs 1000 crore | 0.010 per cent |
| Category | Pollution index factor (PIF) |
|---|---|
| Green | 1.00 |
| Orange | 1.50 |
| Red | 2.00 |
Higher slabs (item 2(d)): "The maximum annual fee of the preceding slab shall serve as the base fee for the next slab, with the Scale Factor (SF) applicable on the difference amount." The formula is: Annual Fee (CF) = Max. fee of the preceding slab + {(Diff. of CI) × SF × PIF}.
Minimum (item 2(e)): the minimum annual fee is Rs 5,000, Rs 7,500 and Rs 10,000 for green, orange and red category industry or activity respectively.
A worked example in the first slab. An orange-category plant with capital investment of Rs 80 lakh (Rs 80,00,000) falls in the first slab. CF = 80,00,000 × 0.100 per cent × 1.50 = Rs 8,000 × 1.50 = Rs 12,000. That is above the orange minimum of Rs 7,500, so Rs 12,000 is the ceiling for the annual fee. A State may charge less.
Part A, item 3: local bodies and infrastructure projects
For infrastructure projects covered by the 2006 environmental clearance notification (residential apartments or complexes, layouts, integrated projects, commercial and office complexes, education institutions, townships and local bodies including water supply and sewerage boards), the annual fee for consent to establish is worked out with the same formula, on capital investment during the establishment phase.
The annual fee for consent to operate for those projects depends on the sewage generated or handled, in ten bands from up to 10 KLD to above 25 MLD, with separate columns for local bodies and residential projects and for others. For example, up to 10 KLD is Rs 5,000 in the first column and Rs 7,500 in the second, and above 10 to 50 KLD is Rs 15,000 and Rs 22,500. Read the full table in the Schedule for the higher bands.
Part A, items 4 to 7: special fees
| Item | Activity | How the fee is fixed |
|---|---|---|
| 4 | Mining | CF = CC × MF × AF × TMF: consented capacity (tonnes a year), mineral factor (1.0, 0.8, 0.6 or 0.4 by mineral), area factor (1.0 to 1.7 by lease area) and type of mining factor (1.25 open cast, 1.00 underground); minimum Rs 5,000 a year |
| 5 | Coffee pulping | CF = BF × PF: basic fee of Rs 2,500 a year multiplied by 1.25 for wet pulping or 1.00 for dry pulping, irrespective of capacity |
| 6 | Aquaculture | By lease-hold area: nil up to 5 ha; Rs 5,000 between 5 and 25 ha; Rs 25,000 above 25 to 100 ha; Rs 1,00,000 above 100 ha |
| 7 | Diesel generator as the only source of air pollution | By rating: nil above 250 KVA as printed, Rs 1,000 for 250 to under 500 KVA, Rs 2,000 for 500 KVA to under 1 MVA, Rs 5,000 above 1 MVA |
Item 8, incentives: the Schedule says industrial plants that adopt measures to reduce water, air and land pollution, conserve resources and undertake voluntary initiatives going beyond the Boards' directions, with levels below national or location-specific standards, shall be identified, and the State Board may give incentives after consulting the Central Board. No incentive amount is printed.
Parts B and C: consent to establish and consent to operate
- Part B: the fee for consent to establish "shall not exceed twice the annual fee of consent as prescribed in this Schedule".
- Part C, as amended in 2026: the fee for consent to operate "shall not be more than that determined by multiplying annual fee of consent and period of consent in accordance with sub-paragraph (1) of paragraph 5 of these guidelines". Before 2026, the reference was to the validity periods in paragraph 4(3), which were replaced.
So, for a ten-year one-time fee under paragraph 5(1), the ceiling is the annual fee multiplied by ten; for five years, by five.
Need help with the fee?
A fee computation depends on a capital investment certificate and the right category. Our compliance documentation team can help you compute the ceiling, check it against the State fee notification and prepare the supporting certificate.
Key takeaways
- The Second Schedule sets the ceiling; States may charge less and there is no floor in paragraph 5.
- The formula is CF = CI × SF × PIF, with PIF 1.00, 1.50 and 2.00 for green, orange and red.
- Minimum annual fees are Rs 5,000, Rs 7,500 and Rs 10,000 for green, orange and red.
- Consent to establish is capped at twice the annual fee; consent to operate at the annual fee times the period under paragraph 5(1).
- The 2026 amendment defines "Capital Investment" and updates Part C.
Read next
- Paragraphs 4 and 5: validity of consent and fees
- Paragraphs 10-18 of the Water consent guidelines: CTE, CTO, refusal, committees and annual fees
- Section 21A of the Air Act: central guidelines on consent
- Pollution control CTE and CTO fees and government charges
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.