MEV 016: Unit 08 - Classification of Industry

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 UNIT 8: CLASSIFICATION OF INDUSTRY

8.0 Introduction

Industries play a pivotal role in the socio-economic development of any country by contributing to national income, generating employment, and fostering technological innovation. However, industrial development also has the potential to degrade the environment if not properly managed. Understanding how industries are classified is essential for effective regulation, environmental monitoring, and planning, especially within the framework of Environmental Impact Assessment (EIA).

This unit explores the basis on which industries are classified, the factors influencing their location, and the planning and regulatory frameworks that guide their siting, especially in environmentally sensitive zones.

8.2 Objectives

After studying this unit, you should be able to:

  • Understand various methods of industrial classification.
  • Identify factors affecting the location and development of industries.
  • Describe the categorization of industries from an environmental perspective.
  • Understand siting and setting criteria for EIA-related projects.
  • Appreciate the importance of site planning in minimizing environmental impacts.

8.3 Classification of Industries on the Basis of:

Industries are classified using multiple criteria to organize them for economic analysis, environmental monitoring, resource management, and planning. These classifications help policy-makers and planners implement appropriate environmental safeguards.

8.3.1 Raw Materials

Industries can be classified based on the type of raw materials they use:

  • Agro-based Industries: Use plant or animal-based materials. e.g., textile, sugar, dairy.
  • Mineral-based Industries: Use mineral ores as raw material. e.g., iron and steel, cement.
  • Forest-based Industries: Use products from forests. e.g., paper, plywood, rubber.
  • Marine-based Industries: Use products from the sea. e.g., fish processing, salt production.

8.3.2 Source of Raw Material

  • Local Resource-based: Raw materials sourced nearby; reduces transport cost. e.g., brick kilns near clay deposits.
  • Import-oriented Industries: Rely on imported raw materials. e.g., petroleum refineries in landlocked regions.

8.3.3 Size

Based on capital investment, manpower, and scale of operation:

  • Cottage Industries: Small-scale, often home-based, using traditional skills.
  • Small-Scale Industries (SSI): Limited capital investment and workforce.
  • Medium-Scale Industries: Intermediate level of investment and employment.
  • Large-Scale Industries: Huge capital investment and infrastructure. e.g., automobile and steel plants.

8.3.4 Ownership

Ownership defines how control and responsibilities are shared:

  • Public Sector: Owned and operated by the government. e.g., ONGC, SAIL.
  • Private Sector: Owned by private individuals or corporations. e.g., Tata, Reliance.
  • Joint Sector: Co-owned by government and private entities.
  • Cooperative Sector: Owned by a group of producers or workers. e.g., Amul.

8.3.5 Miscellaneous Classification

  • Heavy and Light Industries: Based on product weight and capital usage.
  • Basic and Consumer Goods Industries: Basic goods industries supply inputs to other industries, whereas consumer goods industries directly serve consumers.

8.4 Factors Affecting the Location of Industries

The site selection for industrial units depends on several factors:

  1. Availability of Raw Material: Proximity to source reduces transportation costs.
  2. Power Supply: Continuous and affordable power is critical for most industries.
  3. Transport Facilities: Access to railways, roads, and ports facilitates raw material and goods movement.
  4. Water Supply: Many industries, especially chemical and textile, need large amounts of water.
  5. Labor Availability: Skilled and unskilled labor should be easily available.
  6. Market Accessibility: Nearness to markets reduces delivery time and logistics cost.
  7. Government Policies: Incentives, subsidies, and regulatory support influence site decisions.
  8. Environmental Conditions: Industries often avoid environmentally sensitive or disaster-prone areas.

8.5 Categorization of Industries

In the context of EIA, industries are categorized based on the degree of pollution they cause:

As per MoEFCC (Ministry of Environment, Forest and Climate Change), India:

  • Red Category: Highly polluting industries (e.g., tanneries, thermal power plants).
  • Orange Category: Moderately polluting industries (e.g., food processing, packaging).
  • Green Category: Low-pollution industries (e.g., ice cream production, assembly units).
  • White Category: Practically non-polluting industries (e.g., air coolers, chalk making).

This categorization helps in simplifying the approval process and prioritizing environmental safeguards.

8.6 Siting and Setting Criteria for EIA Projects

To prevent environmental degradation, the siting of industries is regulated through specific criteria in the EIA process:

  • Buffer Zones: Industries must maintain a certain distance from eco-sensitive zones, forests, and residential areas.
  • Topography and Drainage: Sites with good drainage and minimal erosion risk are preferred.
  • Air and Water Quality Baselines: Sites should be evaluated for their existing environmental quality.
  • Disaster Risk Zones: Avoid floodplains, fault zones, or cyclone-prone areas.
  • Land Use Compatibility: Must align with local and regional land-use plans.

8.7 Site Planning and Development

Effective site planning reduces the environmental footprint of industrial projects:

  • Zoning: Separating functional zones (production, storage, waste treatment) to prevent contamination.
  • Green Belts: Planting trees around facilities to absorb pollutants.
  • Waste Management Systems: On-site facilities for solid, liquid, and hazardous waste.
  • Stormwater and Effluent Treatment: Infrastructure to treat discharge before release.
  • Sustainable Infrastructure: Energy-efficient buildings, use of renewable sources, and recycling loops.

Early incorporation of environmental planning can also reduce long-term operational costs and regulatory hurdles.

8.8 Summary

This unit discussed the multiple ways industries are classified and how these classifications affect environmental management and regulatory oversight. Understanding industrial classification helps in planning, policy formulation, and ensuring environmentally sustainable industrial development.

Site selection, location factors, categorization by pollution levels, and adherence to EIA siting criteria are all essential for managing the environmental impacts of industrialization. Proper site planning and the integration of green practices can make industries more sustainable and socially acceptable.

In the next unit, we will explore the concept of Environmental Management Plans (EMPs) and how they are designed to mitigate the impacts identified through EIA processes.

 

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