CETPs MSME scheme – Benefits, guidelines, documents, eligibility

CETPs is an abbreviation for Common Effluent Treatment Plants. The CETPs scheme was launched by the Government of India to help MSMEs set up CETP for a financial subsidy to reduce pollution arising from industrial waste in the country.

“CETPs help in achieving end-of-pipe treatment of combined wastewater of the SSIs at lower unit cost and also facilitate better monitoring by the State Pollution Control Boards (SPCBs) and Pollution Control Committees (PCCs),” according to the Central Pollution Division.

What is the CETPs MSME scheme?

The CETPs MSME scheme was launched to enable the MSMEs to set up Common Effluent Treatment Plants (CETP) in the country. MSME units are sources of pollution because of the effluents discharged from their factories.

Even though many businesses use pollution control technology in their manufacturing plants, MSMEs are unable to afford installation of pollution control equipment. “To encourage use of new technologies for CETPs for existing MSME clusters of units” the CETPs scheme was formulated.

The applications received fort he set up of CETP will be prioritised based on:

• Toxicity of pollutants
• Pollution load being generated and to be treated
• Number of units covered

Also read: ZED certification for MSMEs: Full form, benefits, and more

Benefits of CETP MSME scheme

Financial assistance for setting up the effluent plants is the main benefit of the scheme. Have a look at the list of CETP benefits and features:

• The central and state government will sponsor 50% of the project cost. This shall be subject to a ceiling of ₹20 Crore in projects without Zero Liquid Discharge (ZLD) and ₹40 Crore for projects with provision of ZLD. The central funding shall also be restricted to ₹1.5 Crore per Minimum Liquid Discharge (MLD) for a CETP project without ZLD.
• 30% of the project cost can be availed as CETP MSME loan from financial institutions

Eligibility criteria

Listed below are the eligibility requirements for CETPs scheme:

• CETPs should be established in industrial estates or in a cluster of Small Scale Industrial (SSI) units.
• Central Assistance will be available only for clusters of SSIs.
• The project should be self-supporting for repayment of the loan and meeting operation and maintenance costs.
• The project must formulate adequate institutional arrangements for cost sharing, recovery of dues and management and ensure observation of prescribed standards.
• The scheme must have the technical recommendation of the State Pollution Control Boards.
• The CETP project should have the conveyance system from the individual units to the CETP.

Also read: RAMP Scheme for MSMEs: Objectives, features and implementation

Documents required

Given below is a list of documents required for the CETPs MSME scheme:

• Project plan
• Sludge management plan
• Feasibility report
• Clearance certificate from State Pollution Control Board for all hazardous waste facilities
• KYC documents

How to apply to scheme?

If you want to set up a CETP for your manufacturing plant, you must first contact the State Pollution Control Board. Enquire about the scheme and forms to fill in for CETP MSME registration process. The Pollution Board should give you directions on how to proceed. The forms obtained must be submitted to the Director, Pollution Control Division Ministry for processing.

Also read: MSME Innovative scheme – Objectives, guidelines, and more

CETPs MSME scheme guidelines

Have a look at some of the important guidelines under the scheme:

• The effluent treatment plants set up under the CETPs scheme primarily serves the effluent discharged by the SSIs.
• Along with the setup of new effluent treatment plants, the upgrade/modernisation proposal for CETPs earlier financed through the Ministry of Environment, Forest and Climate Change (MoEF) shall be considered for one time funding.
• Central assistance will be provided only for the capital costs. No assistance will be provided for recurring costs. The project cost may include plant and machinery for primary, secondary and tertiary treatment, on-site laboratory with standard set of instruments and Zero Liquid Discharge (ZLD) and related technologies.
• The financial assistance under the scheme is equally divided between the central and state government which means that the central government and state government will sponsor 25% each of the project cost.
• “The assistance will be released in four equal installments. The first installment of 25% of the assistance will be released when a body has been identified for the purpose of implementing the project, financial arrangements have been tied up, institutional arrangements have been finalised, consent has been obtained from the State Pollution Control Board and the State Government has committed to its contribution,” according to CETP MSME guidelines.
• Central subsidy shall be released subject to two conditions: One, the State subsidy is made available to the CETP project; two, Bank guarantee for an equivalent amount has been procured by the State Pollution Control Boards (SPCBs) and Pollution Control Committees (PCCs).
• Adequate linkage with the Treatment, Storage and Disposal Facility (TSDF) for disposal of hazardous waste generated from the facility should be ensured.
• The proposal should incorporate a scientific sludge management plan based on the sludge characteristics.
• The land for establishment of the CETP may be provided by the state Government or its agencies.

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Also read: SIDBI Loan schemes for MSMEs, functions & application