Andhra Pradesh

Industrial
Sustainability and
Safety Policy
- Policy Document -

August 2020
Contents
Abbreviations .......................................................................................................................... 3

1. Introduction ...................................................................................................................... 5

2. Policy vision and approach .............................................................................................. 8

3. Strategic Environmental Assessment – Industrial Zoning in Andhra Pradesh ............... 10

4. Strategic Environmental Assessment - Industrial Siting for industrial projects in Andhra

Pradesh ......................................................................................................................... 16

5. Safety Culture in industrial units .................................................................................... 23

6. Compliance, Monitoring, Audits & Inspection ................................................................ 30

7. The Way Ahead ............................................................................................................. 31

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Abbreviations

Abbreviation Full Form

ACS Annual Compliance Statement
AFIH Associate Fellowship in Industrial Health
AP Andhra Pradesh
APEMC Andhra Pradesh Environment Management Corporation
APIIC Andhra Pradesh Industrial Infrastructure Corporation
APMDC Andhra Pradesh Mineral Development Corporation
APPCB Andhra Pradesh Pollution Control Board
APSDMA Andhra Pradesh State Disaster Management Authority
APSDR&FS Andhra Pradesh State Disaster Response and Fire Services
APSDRF AP State Disaster Response Force
CETP Common Effluent Treatment Plan
CFE Consent for Establishment
DGFASLI Directorate General Factory Advise Service and Labour Institute
DMI Disaster Management Institute
DTCP Director of Town & Country Planning
EIA Environmental Impact Assessment
EZA Environment Zoning Atlas
FSRM Factory Safety Risk Map
GIS Geographical Information System
HPC High Power Committee (formed to probe LG Polymers accident case)
ISO International Organization for Standardization
ITI Industrial Training Institute
IZP Industrial Zoning Plan
IZMC Industrial Zone Management Committee
MAH Major Accident Hazards
MAUD Municipal and Urban Development
MoEFCC Ministry of Environment Forest and Climate Change (Government of India)
MSDS Material Safety Data Sheet
MSIHC Manufacture, Storage and Import of Hazardous Chemicals
MSME Micro Small Medium Enterprises
NFSC National Fire Service College
NIDM National Institute of Disaster Management
NREDCAP New & Renewable Energy Development Corporation of Andhra Pradesh
OSHA Occupational Safety and Health Administration
PISM Present Industrial Sector Maps
PLI Public Liability Insurance
PPE Personal protective equipment
PPP Public Private Partnership

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Abbreviation Full Form
PR Panchayati Raj
RTPA Resident Town Planning Atlas
SDG Sustainable Development Goals
SEA Strategic Environmental Assessment
SFSB State Factory Safety Board
SIPB State Investment Promotion Board
SIPC State Investment Promotion Committee
TSDF Treatment, Storage, and Disposal Facility
UDA Urban Development Authority
ULB Urban Local Body
UN United Nations
UNEP United Nations Environment Programme

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1. Introduction
The Government of Andhra Pradesh, under the leadership of the Hon’ble Chief Minister
Shri. Jagan Mohan Reddy envisions to create a sustainable and safe industrial ecosystem
through a policy focussing on planned industrial development in consonance with
environment and safety measures.

The Hon’ble Chief Minister has enunciated on multiple occasions that “there must be a fine
balance between protection of environment and industrial development. Industries
generate employment for future generations but at the same time they should be
environment friendly. De-risking the capital investment made by an industry by ensuring
hassle-free and timely completion of the project is the biggest incentive for entrepreneurs”

1.1 Impact of Pollution on Industry and Ecology

Despite the numerous advantages of industrialization, it has been seen that economic
growth comes at a significant cost for both investors and citizens. Industrialization
inherently generates significant quantity of liquid waste, hazardous and non-hazardous
solid waste, as well as pollutants into the air, resulting in environment related concerns,
disturbing the ecological balance and health of both human and other organic life forms.
Handling this waste also places significant burden on the industrial unit and the society.

Additionally, some of the damage can cause genetic defects in humans as well as animals
which can propagate through multiple generations. Moreover, the resulting climate change
from temperature changes also brings permanent damage to the planet. Hence, it is critical
to ensure that industrialization is carefully planned and managed, while minimizing the
negative fallout of the same, both on the industry as well as people.

1.2 Sustainable Development Goals

With a vision for more prosperous, peaceful, equitable future and balanced growth, the
United Nations has recognized the Sustainable Development Goals (SDGs) in 2015. India
has adopted the SDG framework and is committed to achieving the goals by 2030. Andhra
Pradesh has aligned its development agenda with SDGs. The below two areas are one
among various goals that pertain to health and environmental impact due to
Industrialization:

a) Build resilient infrastructure, Inclusive and sustainable industrialization: Goal 9 of

SDG is to “Build resilient infrastructure, promote inclusive and sustainable

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 industrialization”. The Government of India targets to “By 2030, upgrade infrastructure and
retrofit industries to make them sustainable, with increased resource-use efficiency and
greater adoption of clean and environmentally sound technologies and industrial
processes, with all countries taking action in accordance with their respective capabilities”.
b) Good health and well-being: Goal 3 of SDG is to “Promote Good Health and well-being”.
The Government of India targets to “By 2030, substantially reduce the number of deaths
and illnesses from hazardous chemicals and air, water and soil pollution and
contamination”.
c) Climate Action: Goal 13 of SDG is to “take urgent action to combat climate change and
its impacts”. The Government of India targets by 2030, to strengthen resilience and
adaptive capacity to climate-related hazards and natural disasters, and integrate climate
change measures into national policies, strategies and planning.

Hence any planning for Industrial development needs to consider the above goals towards
building a sustainable State.

1.3 Current situation in Andhra Pradesh

Andhra Pradesh has diversified industrial base and is leading in several manufacturing
sectors including agro-based and aqua processing, mining and mineral beneficiation,
cement, power, pharmaceuticals, chemicals, petrochemicals etc. While the state
Government has taken several initiatives to bring down the cost of doing business while
ensuring safeguards against adverse impact on the environment, there have been inherent
challenges.

a) Dispersed industrial development with lack of well-planned industrial zones

Many departments/agencies are involved in planning of various zones in a state, including
industrial zones. With the absence of specific guidelines at national and state level for
providing industrial buffer and appropriate environmental planning & management in master
plans and town and country planning, industries have flourished in a dispersed manner all
over the state. Scattering of industries also makes it difficult to build and utilize a common
waste management system, which can greatly reduce burden on the industry and mitigate
pollution.

Proactive measures to create awareness have never been taken up to impart knowledge
on the pros and cons of locating industry in environment sensitive areas or highly urbanized
areas. With this lack of knowledge, investors not only face challenges while seeking

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regulatory approvals, but also during operating the plant. Valuable time, resources and
effort are put in, placing a massive risk on the investment made.

Hence, it is imperative to develop carefully planned industrial clusters with appropriate

zoning measures. These zones can be mapped with the category of industries that can be
allowed, considering the environmental impact on the ecosystem. Moreover, this will also
help the entrepreneur setup their operations within scheduled timelines and focus their
precious time and effort on operating and growing their business. Additionally, the
concentration of industries in a cluster economises investment on the provision of pollution
control measures such as establishment of common treatment facilities.

b) Industrial Safety
In recent times, the country, and not just Andhra Pradesh, has witnessed several industrial
accidents that have highlighted the difficulty faced by various industrial communities while
adhering to multiple laws. In addition to many of the well-known conventional hazards, the
divergence in manufacturing technologies has added a variety of new risks in the
workplace, leading to severe consequences.

The state Government believes that sustainable industrial growth cannot be achieved
without safe, healthy working conditions and a clean environment. Education, training,
participation and sharing of best practices are essential for the promotion of such
conditions. However, with the increased use of chemicals in industrial processes, focused
attention needs to be bestowed upon hazardous processes and operations, wi th limited
knowledge available on potential safety, health and environmental risks.

1.4 Policy Intervention

The State Government policy is to facilitate industrial development, duly encouraging the
development of industrial zones/parks with modern services, institutional frameworks and
best infrastructure facilities. The State is taking up the responsibility at its end to ensure
that there is no information asymmetry and compliance with environment regulations is
facilitated before entrepreneurs invest in the State.

In this regard, this policy is being drafted to ensure that industries are developed in a
planned manner, ensuring minimal impact on the environment. At the same time, the policy
also seeks to strengthen the safety culture, minimise industrial accidents, damage to the
environment and bring in improved compliance monitoring systems.

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2. Policy vision and approach

2.1 Vision
To promote sustainable industrial development in Andhra Pradesh through Strategic
Environmental Assessment and planned industrial siting to ensure minimal negative
ecological impact and promote safety culture in industrial operations with improved
compliance monitoring systems.

2.2 Objectives
i. Endorse pre-assessment of all environmental aspects on landscape-scale for
industrial development projects in the state of Andhra Pradesh
ii. Ensure all industrial development occurs in planned industrial zones, with provision
for statutory buffer zones, as part of the industrial siting policy
iii. Promote a ‘risk-free’ investment friendly environment for setting up and operating
industries in the State, with focus on ‘safety culture’ to prevent industrial accidents
and exposure to harmful chemicals
iv. Strengthen institutional mechanism for emergency response plans and systems
v. Monitor and ensure compliance with safety and environment related aspects through
self-compliance and third party audits

2.3 Targets
i. Develop industrial zones by overlaying environmental zones, town planning,
industrial master planning, pollution control standards, employment generation
potential of the Industry, regional environmental sensitivity and sector-specific
aspects through strategic environmental assessment for the state of Andhra
Pradesh
ii. Ensure 100% monitoring of pollution and various kinds of industrial waste being
released from industries
iii. Ensure 100% safe and scientific effluent treatment and disposal, water reuse, solid
waste recycling in all new industrial parks being developed and all existing industrial
parks by 2023
iv. Promote ‘safety culture’ in industrial units to prevent industrial accidents and
exposure to harmful chemicals
v. Develop and monitor key performance indicators across environment, safety and
health at industrial units/areas, through a technology-based compliance monitoring
system

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2.4 Validity
The policy will be valid from the date of its release until such time it is replaced or subsumed
under another state policy.

2.5 Nodal Agency

Specific policy interventions will be implemented by the individual departments or the
regulators in the State of Andhra Pradesh.

To provide direction and recommendations, as well as monitor the implementation of this

Policy, there shall be a Nodal Agency called the Industrial Zoning Management Committee
(IZMC), which will specifically monitor:
i. Conduct of Strategic Environmental Assessment, including Annual Industrial
Zoning Plans and Industrial Siting
ii. Implementation of safety and emergency response measures
iii. Compliance with respect to safety and environment norms

The IZMC will be chaired by the Secretary in-charge of the Environment & Forest Department
and will comprise of the Secretaries of the Industries and Commerce Department, MA&UD
Department, PR Department, Labour, Factories and Boilers Department and Energy
Department. The MD APIIC will function as the convenor of this Committee. The heads of
departments such as Commissioner of Industries, Member Secretary of APPCB,
Commissioner APSDMA, Director of Factories, Director of Boilers, DG of Fire Services, Chief
Electrical Inspector, other officers and concerned district officials may be invited as and when
required.

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3. Strategic Environmental Assessment – Industrial Zoning
in Andhra Pradesh

The policy aims to introduce the concept of 'Strategic Environmental Assessment' as a pre-
assessment of all environmental aspects on landscape-scale of industrial projects, rather than
project by project before an industry is actually promoted. It will de-risk investments made in
the State, speed up approvals for the establishment of industries while increasing compliance
on the environment and safety-related practices.

"Strategic Environmental Assessment (SEA) refers to the systematic analysis of the all
environmental effects of development policies, plans, programmes and other proposed
strategic actions. This process extends the aims and principles of Environmental Impact
Assessment upstream in the decision-making process, beyond the project level and when
significant alternatives are still open. SEA represents a proactive approach to integrating
environmental considerations into the higher levels of decision-making".

[Source: United Nations Environment Programme (UNEP)]

“The World Bank recognizes strategic environmental assessment (SEA) as a key means of
integrating environmental and social considerations into policies, plans and programs,
particularly in sector decision-making and reform. SEA incorporates environmental
considerations across different levels of strategic decision-making: plan, program, and
policy”

[Source: The World Bank]

“SEA is applied at the very earliest stages of decision making both to help formulate policies,
plans and programmes and to assess their potential development effectiveness and
sustainability. This distinguishes SEA from more traditional environmental assessment tools,
such as Environmental Impact Assessment (EIA), which have a proven track record in
addressing the environmental threats and opportunities of specific projects but are less easily
applied to policies, plans and programmes. SEA is not a substitute for, but complements,
EIA and other assessment approaches and tools”

[Source: Organisation for Economic Co-operation and Development (OECD)]

“SEA the evaluation of the likely environmental, including health, effects, which comprises
the determination of the scope of an environmental report and its preparation, the carrying-
out of public participation and consultations, and the taking into account of the environmental
report and the results of the public participation and consultations in a plan or programme”

[Source: United Nations Economic Commission for Europe (UNECE)]

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Though the institutional structure of Environmental Impact Assessment (EIA) is in place in
India, it has certain shortcomings as a tool for minimizing environmental effects of
development proposals, especially in respect of Industrial projects. It takes place relatively
late at the downstream end of the decision-making process after the land/site is identified,
investments have been made, directions have been chosen, and significant alternatives do
not exist. The High Power Committee (HPC), which was constituted to probe into the LG
Polymers accident case has also pointed out certain gaps in the regulatory system of EIA,
especially relating to Environmental Clearances and Compliance Monitoring.

The advantages of the Strategic Environmental Assessment are as follows:

▪ Conducted at earlier stages of the decision-making cycle
▪ Pro-active approach to development proposals, including Industrial projects
▪ Identifies environmental implications, issues of sustainable development
▪ Considers a broad range of potential alternatives
▪ Early warning of cumulative effects
▪ Emphasis on meeting environmental objectives, maintaining natural systems
▪ Broad perspective, lower level of detail to provide a vision and overall framework
▪ Focuses on sustainability agenda, gets at sources of environmental deterioration

3.1 Proposed approach for Strategic Environmental Assessment for

Industrial projects
The Government of Andhra Pradesh is proposing to implement the Strategic Environmental
Assessment (SEA) scientifically. As this is an initiative being taken for the first time in India,
the international best practices in SEA being followed in European Union, USA, Australia, and
the World Bank guidelines will be adopted in the State of Andhra Pradesh. The major
modalities of the SEA have been provided in this policy document and operational guidelines
will be issued separately by the Government of Andhra Pradesh.

3.2 Preparation of Industrial Zoning Plans for State of Andhra Pradesh

on annual basis
The SEA for Industrial projects will include the preparation of Environment Zoning Atlas (EZA),
Residential Town Planning Atlas (RTPA), Present Industrial Sector Maps (PISM) taking into
account the Nature of Industry & Buffer Zones and Factory Safety Risk Map (FSRM). These
Atlas and Maps as a part of SEA will be prepared on an annual basis.

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 The EZA, which is a GIS-based spatial planning and decision-making
tool, is being developed by the APPCB to assess and manage
Environment
environmental quality holistically, and the resource use by industrial
Zonal Atlas
investors and other land-water users. The EZA will be a useful tool for
(EZA)
zoning of suitable sites for siting of Red, Orange, Green and White
category industries.
The Department of Town and Country Planning (DTCP) will immediately
prepare Residential Town Planning Atlas (RTPA). The first phase of
RTPA would clearly demarcate the residential areas using GIS. It will
show the village & town habitation areas in the State of Andhra Pradesh
Residential
on GIS maps. In the second phase, the DTCP will take up preparation of
Town Planning
master plans for each of the habitation areas, viz. Gram Panchayats,
Atlas (RTPA)
Municipalities, Municipal Corporations, and Urban areas in association
with Panchayat Raj Department and MA&UD department. In these
master plans, special care would be taken by the DTCP to demarcate
the existing & proposed Industrial Zones with an appropriate buffer.
The Industries department presently follows the categorisation of
Industries into MSME, Large and Mega industries based on the capital
investment. The Industries department, through GIS, will map the
present dispersion of the Industries as per the above categorisation in
Present
the Present Industrial Sector Maps (PISM). The primary goal of the
industrial
Government is to create significant employment through the promotion
sector maps
of Industries. Hence, in the PISM map, the data on employment (total
(PISM) &
number of people entering the factory gate regularly viz. employees,
Employment
workmen, contract workers, daily wage workers etc.) shall also be
Potential
captured appropriately. Further, the Industries and Commerce
Statement
Department will prepare Industry sector-wise employment generation
potential statement (Employment Potential Statement), which would be
utilised for determining the type of Industries to be promoted in the
various Industrial Zones.
The Factories department already has a classification of Industries
Nature of
based on safety risk profile as High, Medium and Low. The location of
industry,
existing Industries will be mapped by the Factories Department on the
buffer zones &
GIS maps being prepared by the APPCB for EZA. The risk profile of the
Factory Safety
existing industries will be appropriately captured in the Factory Safety
Risk Map
Risk Map (FSRM). The FSRM will also depict the required buffer zones
(FSRM)
for the different categories of Industries.

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The Environment Zoning Atlas (EZA), Residential Town Planning Atlas (RTPA), Present
Industrial Sector Maps (PISM) taking into account the nature of Industry & Buffer Zones
captured in Factory Safety Risk Maps (FSRM) will be consolidated to prepare a state-wide
and district-wise Industrial Zoning Plan (IZP). The zones for siting of industries of various
categories would be demarcated in IZP. This consolidation exercise will be undertaken by the
APIIC, with the assistance of APPCB, Director of Factories and DTCP and other connected
officers. The APIIC may engage suitable competent and reputed agency for assisting it in
preparation of the IZP. On completion, the documents shall be placed before the nodal
agency, IZMC. The IZMC shall finalize the IZP with the assistance of the concerned
departments/organizations, make its recommendations and get it processed further for the
SIPC/SIPB approvals.

The IZP would act as a guide for site suitability for setting up of an industry. It would be a
beneficial decision-making tool for the Industries & Commerce Department and organizations
like APIIC, NREDCAP, AP Solar Energy Corporation, APMDC etc. It would also be a very
useful tool for prospective entrepreneurs and investors to select a suitable site for their
Industries.

3.3 Developing common infrastructure facilities for waste treatment

and management as an integral facility
The Government is keen to ensure proper implementation of environmental regulations in the
State, thereby leading to safe handling and management of industrial effluents, hazardous &
other wastes. In this regard, the "Andhra Pradesh Environment Management Corporation"
has been established as a Government-owned company to provide for an effective
mechanism for collection, transportation, storage, treatment, processing and disposal of the
industrial waste and other wastes.

The Government will proactively develop common waste management infrastructure facilities
at industrial estates/parks to meet environmental norms and reduce upfront costs for investors
to set up their waste management facilities. A novel feature mandatorily required in each
industrial park / standalone industry would be the proper setup for monitoring of solid waste
(including hazardous waste), liquid effluents and air emissions.

The APIIC or the organization taking up development of industrial park / standalone industry
shall plan and take up development of CETPs, TSDFs, Waste Recycling and Pre-processing
facilities and the total waste disposal in association with AP Environment Management

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Corporation (APEMC). APIIC and APEMC will work together to provide waste disposal
systems developed by a private entity on user charges mode for each Industrial estate/park.

Any other government agency or promoter of any industrial park being developed in PPP
mode or any other standalone industry shall also follow the above-outlined systems for waste
monitoring and disposal.

3.4 Implementing technology-based solutions for Access to

Information
Information regarding the State-wide and district-wise Industrial Zoning Plan (IZP) providing
clearly, the zones for siting of industries, of various categories will be made available to
investors for improved planning. Further, data on the numerous existing and proposed
Industrial estates/parks will also be made available through the Industries and Commerce
Department's Portal.

Information repository will also be made available for:

i. Shared facilities for the monitoring and management of waste generated in the
Industrial Zone / Industrial Park, so that a prospective entrepreneur can factor in cost
towards waste monitoring and treatment based on zone / industrial park selected
ii. Cleaner production and safety protocol measures for those industries which plan to
set up their unit closer to the residential area / populated area
iii. A single portal to provide information on all rules and regulations

Various departments of the Government will strive to proactively inform the stakeholders on
industrial zoning and industrial safety measures through the unified portal in the Industries
and Commerce Department.

3.5 Annual Renewal

Given that the establishment of new Industries, labour mobility, technologies etc. are dynamic,
Environment Zoning Atlas (EZA), Residential Town Planning Atlas (RTPA), Planned Industrial
Sector Maps (PISM) & Factory Safety Risk Map (FSRM) and the Industrial Zoning Plan (IZP)
would be updated every year. Simultaneously, each of the departments will also attempt to
make technology solutions available which will make it possible for updation of the atlas and
plans on continuous basis.

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3.6 Role of Nodal Agency – Industrial Zoning
Industrial Zoning Management Committee (IZMC) shall be the nodal agency for process of
Strategic Environmental Assessment including development of Environment Zoning Atlas
(EZA), Residential Town Planning Atlas (RTPA), Present Industrial Sector Maps (PISM) &
Nature of Industry including Factory Safety Risk Map (FSRM) and finalisation of Industrial
Zoning Plan (IZP).

While the respective departments will do the technical analysis, the finalisations of the draft
atlas, maps, and the IZP will be done by the IZMC. As these will be fundamental to the State
Government's Industrial Promotion activities, the IZP (and the constituent atlas and maps) will
also be placed in the State Investment Promotion Committee (SIPC) & State Investment
Promotion Board (SIPB) for approval.

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4. Strategic Environmental Assessment - Industrial Siting for
industrial projects in Andhra Pradesh

The Government shall encourage all new industries to be located only in the industrial
estates/parks developed by Andhra Pradesh Industrial Infrastructure Corporation (APIIC),
other Government Departments or any other Organizations. Only in exceptional cases,
standalone industries may be permitted outside these industrial estates and industrial parks
as enumerated in this policy. However, even in respect of these standalone industries, all the
norms of an Industrial Park with respect to environment and safety shall be followed.

The industrial estates / industrial parks may be developed either to attract investments from a
specific sector (such as pharmaceuticals, textiles etc.) or target multi-sector and multi-
products. While industry-specific clusters bring in advantages of economies of scope, it also
leads to heavy pollution load of one variety. Hence, it is desirable that APIIC or other agencies
developing industrial parks explore the development of multi-industry zones to accommodate
diversified activities, as these also provide job opportunities for various skills.

The APIIC or the other organizations developing the industrial estate / parks shall identify sites
for developing industrial estates/parks avoiding proximity to the following sensitive areas listed
below:
▪ Water bodies
▪ Critically polluted areas
▪ Residential Zones
▪ Reserve forests and ecologically sensitive areas.

4.1 Framework for creation of new Industrial Parks / Estates

i. Industrial Zoning Plan (IZP) {and the constituent Environment Zoning Atlas (EZA),
Residential Town Planning Atlas (RTPA), Present Industrial Sector Maps (PISM) & Nature
of Industry – Factory Safety Risk Map (FSRM)} shall be the guiding principle for selection
of suitable sites for Industrial Parks. The IZP will ensure the integration of Environmental
Sustainability, Industrial Safety and Health guidelines into Industrial siting.

ii. Industrial Parks/Estates will only be permitted to be established in notified industrial zones.
The Government, through the APIIC, or any other organization will endeavour to develop
multi-sector and sector-specific industrial parks in the notified industrial zones based on

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 categories of industries permitted, raw material availability, market assessment, external
infrastructure & connectivity, and skills available.

iii. Once a site is identified, based on IZP, for an Industrial Park / Estate, a ground truthing
exercise will be taken up by the APIIC, through an empanelled and reputed agency
competent to conduct EIA studies as per MoEF&CC guidelines. This part of the Strategic
Environmental Assessment (SEA) study with a defined Terms of Reference (ToR) will
definitely include:
a. Verification of all the ground details, vis-a–vis the Industrial Zoning Plan (IZP)
b. Preliminary Environmental Impact Assessment (EIA) for the proposed site of the
industrial park
c. Verification of safety risks and the emergency response systems available, and
d. Feasibility for earmarking of required buffer zone in the town planning maps.

iv. The ground truthing of the IZP will verify all details with the ground conditions. This is to
ensure the ground conditions tally with the IZP and the recommended Industrial Zone and
Category of industry proposed.

v. The preliminary EIA will be conducted in a simple manner with a reduced ToR to study the
environmental impacts, mitigation measures and compliance standards. Public interaction
may be conducted in preliminary manner.

vi. The major additions in the second phase of SEA will be on identifying all the potential
accident causes, which will be a part of the terms of reference of the preliminary EIA. The
results of the preliminary EIA on the potential accidents shall form an important component
in determining the safety steps to be undertaken for siting of the industry, if the siting of
the industry is permissible as per norms.

vii. As a part of the preliminary EIA, the hazard spots around the proposed industrial location
will be identified on the Environment Zonal Atlas (EZA) and Residential Town Planning
Atlas (RTPA) map clearly marking high, medium, low risk prone areas to assist local
authorities in emergency disaster planning and in town planning norms for earmarking
buffer zones.

viii. In respect of red category industries or hazardous category industries, the regulators shall
insist on preparation on onsite emergency plan, offsite emergency plan, constitution of
local crisis group and all other actions required for emergency response in consultation

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 with AP State Disaster Management Authority(APSDMA) and AP State Disaster
Response and Fire Services (APSDR&FS) before consent for establishment/ factory
licences are accorded.

ix. Results of this exercise of SEA and preliminary EIA are to be placed before the IZMC for
its recommendations. Thereafter, proposal will be placed in SIPC and SIPB for necessary
approvals for setting up of Industrial Park/Estate in the proposed location.

x. All industrial parks developed by a Government agency, private promoter or through the
PPP mode must be located in notified industrial zones based on the category of industry
permitted only and follow the above prescribed procedure.

xi. Once the site for the industrial park/estate is approved by SIPC/SIPB, the APIIC or the
concerned developer shall take all necessary environmental clearances & safety
clearances for the industrial parks, before allocation of industrial plots. Only those
categories shall be allotted which are permissible in those parks as per Environmental &
Safety clearances.

4.2 Framework for new standalone Industrial units

As far as feasible, new standalone industrial units will be encouraged to locate in industrial
parks to ensure planned industrial development with prior environmental approvals

However, permissions for new standalone industrial units outside an industrial park, but
compulsorily within notified Industrial zones in the IZP, may be considered for:
i. Mega Projects subject to approval of the SIPC and SIPB
ii. In case there is no availability of industrial park in the region, or an industrial park
cannot accommodate the size of the unit
iii. Industries, which have special requirements to be established in a standalone location,
or in proximity to related sources of raw material, utilities, infrastructure etc.
iv. Any project of importance to the Government in the Public Interest
v. All micro white and green category cottage industries

The new standalone industrial units will be permitted to be established only in permitted
industrial zones as per IZP. The standalone industry projects will need to undergo the same
rigorous framework as for Industrial Parks as provided in Section 4.1.

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The IZMC will examine each of the standalone project proposal to assess whether it qualifies
to be located as standalone industry outside an industrial park and its conformance with the
conditions provided in the framework for industrial siting in Section 4.1.

4.3 Policy regarding existing industrial units

i. Established Industrial parks falling in notified industrial zones as per the IZP will be
strengthened, if necessary, with necessary compliance to:
a. All environmental norms and waste disposal facilities
b. All safety norms and emergency response plans & systems
c. Development of greenery in open and common areas
d. Demarcation and freezing of buffer zone

ii. Standalone industrial units or all units in industrial parks that are not located within
notified industrial zones as per the IZP will need to ensure:
a. Stricter environmental norms and waste disposal facilities
b. Strict safety norms and emergencies response plans and systems
c. Freezing of buffer zone to the extent feasible within the factory and outside the
factory. Dense afforestation will be encouraged to increase the green cover
around industrial unit
The concerned regulators will issue necessary instructions in this regard.

iii. Standalone industries that are not located in IZP, and are willing to be relocated over
a time period, will be provided facilitation by the Government to relocate to a new
industrial park which has been developed following the rules of the IZP. They can be
incentivised by converting the industrial land use classification as
residential/commercial.
iv. For units in an industrial park that has not been planned as per the IZP, and are willing
to relocate over a time period, the Government will facilitate their relocation to a new
industrial park which has been developed following the rules of the IZP, provided that
all the units in the park or at least 50% of them in one contiguous cluster of the
industrial park provide their consent.

v. The Industries and Commerce Department will take further action in these proposals,
duly taking recommendations of IZMC.

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4.4 Expansion of existing Industrial Units
i. Existing industrial units located in notified industrial zones will be permitted to expand
based on the IZP

ii. Existing industrial units that are not located in industrial zones will normally not be
permitted to expand. However, if the unit is very particular on expansion, it would need
to take special steps provided the following are adhered to:
a. Reduction in the current total pollution load (air/water/solid waste)
b. Reduction in the factory safety risk profile
c. Strengthening the industrial unit-based emergency response systems
d. Substantially increasing employment
e. Enhanced measures on safety and environment protection to cater to the
expansion plan

iii. The Industries and Commerce Department will take further action in these proposals,
duly taking recommendations of IZMC.

4.5 Buffer zones

In order to minimize the adverse impact of industries and provide pollution free & safe
environment to the nearby residential neighbourhood, a "buffer zone" around the core site
area /industrial area is proposed for existing and new industrial parks. ‘Buffer Zone’ is defined
as the area between the perimeter of industrial zone and residential area, or area between
two industrial sites/plots where no construction activity is proposed. The buffer shall be kept
open to sky and preferably maintained as green belt, plantation, agriculture, parks etc. The
settlement hierarchy shall be based on the Master Plan prepared for 20 years and the “future
residential growth boundary” shall be clearly marked in the Master Plans.

It will be made mandatory for red category or hazardous industry or an industry dealing with
explosive substances, that along with the CFE application, a site map clearly showing the
buffer zone around the industry is also provided. Under no circumstances, a residential area
shall be proposed abutting highly polluting or red category or hazardous Industries.

4.5.1 Buffer zones for proposed new industrial areas/parks/estates or

standalone units
Buffer zones must be maintained to the extent feasible within the factory and outside the
industrial park / standalone unit. The indicative minimum buffer zone proposed by the

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Government based on the category of industry as per PCB norms, and industry risk profile
based on Departments of Factories & Boilers guidelines is shown below:

High risk Medium risk Low risk

Red category 800 m 500 m 300 m

Orange category 500 m 300 m 200 m
Green category 200 m 150 m 100 m
White category 10 m 10 m 10 m
* Risk profile will be calculated/developed based on compliance history of the unit and the environment
zone that it is sited in

The buffer zones indicated above will be analyzed based on the Residential Town Planning
Atlas (RTPA) and employment potential of the industries and may vary based on the ground
truthing at the specific site. The DTCP will be responsible to incorporate the above buffer
zones in their master plans

4.5.2 Buffer zones for existing industrial areas/parks/estates or

standalone units
To the extent feasible, buffer zones for existing industrial parks and standalone units will
ideally be created/maintained as per the indicative guidelines proposed above for new
industrial parks. If adequate buffer around perimeter of layout/zone cannot be provided due
to unavailability of land, an evaluation shall be conducted to develop strategies for
strengthening with appropriate pollution & safety measures, along with green cover in open
and common areas. Dense afforestation will be encouraged to increase the green cover
around industrial unit to reduce any environmental pollution.

In case residential zones are already established in proximity to the industrial park /
standalone unit, the area between the industrial park and residential zone will be blocked for
buffer zone purpose, and no further development will be permitted. Such buffer zone can be
converted/proposed for green/white industries or agriculture purposes, if feasible. The DTCP
will be responsible to incorporate the above buffer zones in their master plans

For red and hazardous category of industries, Consent for Establishment (CFE) shall be
approved only if the site planning meets the indicative buffer zone requirements, or additional
measures are taken to ensure precautions related to safety and pollution.

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4.5.3 Green cover around polluting industries
As per the stipulations of Ministry of Environment, Forests and Climate Change (MoEF&CC),
greenbelt is to be provided all along the industry boundary by planting tall, evergreen trees
and the total green area including landscaping area will be 1/3rd (about 33%) of the total
project area. This is the minimum which needs to be followed.

4.5.4 Buffer Zone Monitoring

For each industrial park/estate, the concerned Industrial Authority/ULB/UDA/Local Body shall
monitor and ensure that the buffer zone is maintained at the ground level as per norms and
no encroachment is taking place within those zones. The periodic evaluation of the
maintenance of buffer zones shall be done at the local level to verify whether density, height,
species planted in rows is maintained as per norms.

4.6 Role of Nodal Agency in SEA – Industrial Siting for Specific

Industrial Projects

The IZMC will oversee the following and provide its recommendations:
▪ Matters of compliance with respect to zoning regulations and buffer zone guidelines.
▪ To assess compliance requirements from safety perspective of all hazardous/ red/
orange category industries.
▪ The SEA and preliminary EIA for the specific industrial project for its siting
▪ Examine each of the standalone project proposal to assess whether it qualifies to be
located as standalone industry outside an industrial park and its conformance with the
conditions provided in the SEA and preliminary EIA for industrial siting.
▪ Examine the environment and safety issues related to existing industrial units, and
their expansion plans.

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5. Safety Culture in industrial units

Government of Andhra Pradesh is committed to ensuring health and safety and well-being
of industrial workers and people residing in the vicinity. The aim is to minimize, control and
eliminate hazards, thereby protecting citizens, productive assets, and the environment.
Integrating safety considerations into industrial siting as a part of Strategic Environmental
Assessment (SEA) is already a major step envisaged in this Policy.

In addition to the SEA, the Government, through the Industries and Commerce Department
along with the Factories Department, intends to take certain additional steps in respect of
the Safety Protocols and Emergency Response Systems.

5.1 Qualified personnel

To ensure that the safety standards are properly followed, it is important that every industrial
unit appoint trained and qualified technical staff and officers and train its employees to
facilitate compliance with industrial safety and health guidelines. Accordingly, it is proposed
that the industries follow the guidelines as given below for appointing and training of technical
staff and officers and safety personnel.

i. Technical personnel and safety officers in industrial units

a. All industries must appoint technical persons, with required qualifications and
experience for technical jobs. This is suggested in the interest of productivity and
safety considerations.
b. Industries shall compulsorily appoint a senior level safety officer, in line with the
criteria mentioned below, with prescribed technical qualifications and experience:
▪ All industries employing more than 1000 workers
▪ All industries covered under MSIHC Rules, 1989
▪ Other industries / factories dealing in hazardous chemicals and explosive
substances, as decided by the Government from time to time
c. A safety officer should be available in the working hours in the factory premises in
respect of the above industries and easily accessible in the non-working hours.
However, in respect of some very hazardous industries, as determined from time
to time, Government may mandate presence of safety officers at all times
d. Safety Officers shall mandatorily undergo one-year full-time Advance Diploma
Course on industrial safety by recognized Institutes such as Central Labour
Institute and DGFASLI (Directorate General Factory Advise Service and Labour

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 Institute) and endeavor to update their knowledge continuously through periodic
training programmes

ii. Medical Personnel in industrial units

a. Each industrial unit will, either on its own or through tie-up with a nearby hospital
provide for emergency medical treatment to take care of the safety requirements.
b. The Government will also encourage qualified medical practitioners to undergo
Associate Fellowship in Industrial Health (AFIH) course. The Government will also
coordinate with DGFASLI to undertake these courses in association with the medical
colleges in the state of Andhra Pradesh.

iii. Safety training for staff / workers in industrial units

a. Industries shall identify ‘process safety competency-based training needs’, for all the
workers involved in hazardous processes and impart training to improve competency
levels.
b. The training curriculum should also include timely interventions in accidents, and the
mitigation measures immediately required to stop escalation of accidents.
c. The industry/industry associations should consider developing a system of evaluation
and certification of the safety trainings.
d. All employees of the industry shall be made compulsorily aware of the Material Safety
Data Sheet (MSDS) containing information on the potential hazardous materials /
chemicals used or produced in the factory.

5.2 Safety training for departmental / regulatory staff

i. All officers working in the regulatory and other departments, dealing with industries
such as Factories, Fire, PCB, Boilers, Industries etc. shall undergo compulsory training
in Safety Management once in every 3 years.
ii. The Officers and personnel of the APSDR&FS shall be trained regularly at institutions
like National Fire Service College (NFSC), National Institute of Disaster Management
(NIDM), Disaster Management Institute (DMI) etc. to combat chemical, nuclear and
biological disasters.
iii. Special training will be provided to the Police, Fire Services, local bodies, local crisis
groups having jurisdiction over red category and hazardous industries on industrial
safety compliances and emergency response.

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5.3 Education and Skill Development on safety matters
i. The Government will take measures to introduce education and skill development
courses relating to industrial safety, emergency responses in various engineering
colleges, polytechnics and ITIs.
ii. The Government through the local crisis groups and the district crisis groups will
undertake awareness campaigns on safety, health and environment at each industry
unit level. The aim of these programmes will be to disseminate information on the
safety protocols, MSDS, and offsite emergency plans.

5.4 Health Monitoring

i. The health of the workers in an industrial unit is highly susceptible, not only to
conditions in the working environment, but also exposure to specific health hazards
and limited provision of safety equipment. Adequate safety equipment must be
provided to workers to shield them from all harmful effects.
ii. Industries would be encouraged to promote health checkups of workers on periodic
basis.

5.5 Encouragement & Recognition

i. The Government shall endeavour to develop a system of grading and ranking of the
industries based on the safety performances periodically using the existing
mechanisms of ISO certifications etc.
ii. Government will also examine the system of instituting annual awards to recognize
industry units which are actively adopting safety initiatives beyond the boundaries and
regulatory frameworks.

5.6 Emergency Response Plan

Disaster management response for handling natural disasters are in place. The State
traditionally has strong institutional structures in place to handle natural disasters. Of late,
Industrial accidents are turning into disasters. Hence, the Government intends to introduce
measures in order to improve the institutional structure to tackle emergency responses arising
out of the industrial accidents.

5.6.1 Onsite Emergency response plans

i. The Factories Department will continue to mandate the preparation and submission of
the onsite emergency plans by linking it to the licensing process of the hazardous

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 factories. The Emergency plan of any factory shall in no case be less favourable than
the framework prescribed in Schedule 11 of the MSIHC Rules.
ii. All industries will be encouraged to prepare “Onsite Emergency Plans” to mitigate the
effect of accidents within their premises. The industries which already have onsite
emergency plans will be encouraged to review and modify their emergency plans with
latest developments.
iii. The Onsite emergency plan must include:
a. Types of Emergencies / Consequence assessment for each type pf
Emergency/Mitigation Measures for each type of emergency/Infrastructural
back up for supporting the mitigation measures/ Details of Emergency
Response Team/ PPE and other equipment/ chemicals available to deal with
the emergency etc.
b. Roles & Responsibilities of Key Personnel, Standard Procedure for combating
the emergencies, Communication Procedures/Evacuation Procedures/Mutual
Aid arrangements.
c. The plan shall discuss in detail the leak detection, heat detection and smoke
detection arrangements across the factory as well as the systems in place for
alerting the people (siren) inside the factory as well as the community in the
vicinity of the factory.

5.6.2 Offsite Emergency response plans

i. For scenarios where impact of the consequences is expected to go beyond
boundaries of the factory premises and likely to affect the community outside,
each such industry should have an “Offsite Emergency Plan”.
ii. Offsite emergency plan must cover evacuation procedures in
Communities/Transport Facilities/Medical Facilities and Procedures/Relief &
Rehabilitation arrangements /summoning expert services/ Action Plans of stake
holding departments.
iii. Offsite emergency plans should be prepared across all districts for: (a) each,
hazardous or red category industry and (b) for industrial pocket / cluster.
iv. Community awareness around major accident hazard factories will be organised
through local crisis groups.
v. Community alert systems shall be designed and placed so as to alert the
community in the vicinity of a major accident hazard factory in case of an
emergency situation. Similar alert shall also be arranged for the local crisis group
members for initiating quick response to the emergencies.

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 vi. Departmental Action Plans shall be prepared for each of the stakeholder
departments and shall be dovetailed with Offsite Emergency Plan.
vii. The APSDMA / APSDRF will set up a separate chemical/Industrial disaster
management wing by equipping necessary data base, facilities, infrastructure
like risk assessment soft wares, GIS mapping etc. in a phased manner.
viii. The APSDMA will extend support towards building the capacity of various
functionaries in the Government departments for preparedness and response on
Chemical disasters.
ix. Mock drills of Offsite Emergency plan shall be organised once in every year

5.6.3 Early identification of eventuality

The following steps may be taken up for an early identification of any eventuality:
i. Adequate number of sensors attached with hooter system to identify the release
of toxic / hazardous gases or liquids or fire which are harmful to human beings
and property from the industry shall be installed not only inside the industry, but
also outside industry within the identified impact zone as demarcated by Factories
Department.
ii. The sensitivity of the above sensors shall be to the level of respective
Occupational Safety and Health Administration (OSHA) standards.
iii. Sensor activation should alert the following offices:
▪ Local Police Stations
▪ Nearest Fire Station
▪ SDRF cell at Collectorate
▪ The Inspector of Factories
▪ The Regional Office, AP Pollution Control Board

5.6.4 Local Crisis Group

Local Crisis Groups will be the primary group to deal with the emergencies arising in industrial
units. The Government intends to make a local crisis group in association with the concerned
industrial unit in respect of the following:
i. Each, hazardous or red category industry and
ii. Each industrial pocket / cluster

The Local Crisis Group should definitely include the local police, the local Fire and SDRF
personnel, the Workmen representatives of the Industry, the Technical and Safety Experts of
the Industry, the local body representatives and a group of local youth residing in the vicinity
who are willing to participate.

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5.6.5 District Crisis Group
The District Administration will take lead along with the industry bodies, workmen unions and
academic and technical experts to have a permanent body as District Crisis Group. This will
imply that in case of any accident, there is already a team of experts ready to assist the District
Administration in the form of District Crisis Group.

The District Crisis Group will study the emergency response plans of each and every industry
unit/ industrial cluster with the help of experts and broadly keep a framework of emergency
response ready for the district.

The District Crisis Group will hold special trainings/seminars/workshops for various industrial
units/industrial clusters with the local departmental officers and local crisis groups to sensitize
them on the safety protocols and emergency responses.
The District Crisis Group should review and ensure the proper functioning of the local crisis
groups and conduct of the mock drills.

5.6.6 Disaster Management Plan and Mock Drills - APSDMA

The key State departments shall prepare Departmental Disaster (Chemical/Industrial)
Management Plans which will be consolidated by the AP State Disaster Management
Authority (APSDMA). The APSDMA will develop a decision support system to create database
development, GIS Mapping and Emergency Operational Assistance for Management of
Chemical Disasters. This GIS platform will help the Administrators to make decisions and
take effective actions in the aftermath of a Chemical/Industrial Disaster.

The Andhra Pradesh State Disaster Response and Fire Services Department (APSDR & FS)
will function as a State Disaster response force for industrial accidents also. The State
Government will take all necessary steps to equip the APSDR & FS department for all types
of calamities and accidents by providing the necessary infrastructure.

The APSDMA will also take lead, in association with concerned regulatory departments
Organize Mock Drills at all Major Accident Hazard (MAH) units with the support of
NDRF/SDRF/Fire Department/NGOs and other District Administration with the involvement of
Staff/workers and surrounding community.

5.6.7 Compensation in case of accidents

The Government of Andhra Pradesh is planning to strengthen the policy of compensation
for the victims of Industrial accidents. The compensation policy is being proposed for the

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workmen who have died within the factory premises and also for the people who are
residing outside the factory premises.
i. The District Collectors are the competent authorities to pass awards for providing
relief to victims of an accident which occurs as a result of handling any hazardous
substance as per the Public Liability Insurance (PLI) Act,1991.
ii. The Act mandates that the industrial unit shall take one or more insurance policies
providing for the liabilities to give relief to the affected persons.
iii. The Rule 10 of PLI Rules, 1991 also provides that any award for relief which
exceeds the amount payable under the insurance policy shall be met from the
Environment Relief Fund and in case the award exceeds the total of amount of
insurance and the relief fund, the amount which falls short of such sum shall be
payable by the owner of the factory.

The Government intends to take measures to strengthen the implementation of Public

Liability Insurance Act, 1991 through the concerned regulators. Further, since the PLI Act
was introduced many years back and inflation in real terms has increased manifold, the
District Collectors need to take into account the relevant time factor, the ex-gratia awarded
by Government in case of other accidental deaths and pass awards accordingly. The
Government will issue necessary guidelines for the implementation of the PLI Act in its true
spirit.

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6. Compliance, Monitoring, Audits & Inspection

It is observed that though the industries obtain all the regulatory clearances, compliance with
the conditions prescribed in the approvals is given short shrift. The High Power Committee
has also observed these regulatory gaps in its report and has suggested for overhauling of
the existing compliance mechanism in place. The Government, through the Industries and
Commerce Department along with the Factories Department, Boilers Department and
APPCB, intends to strengthen Compliance Monitoring of all the regulatory approvals through
a system of Environment and Safety Audits of industries.

6.1 Self-compliance
It is proposed that all regulatory departments will stipulate the industries to submit an Annual
Compliance Statement (ACS). Annual Compliance Statement means a statement to be
provided by all persons or occupiers carrying on any industrial activity, which required
clearances under the various statutory provisions. Every industry shall submit an Annual
Compliance Statement to the regulatory authority in the prescribed proforma, every year on
or before the stipulated date.

The industrial unit shall place the Annual Compliance Statement submitted on their website,
as well as on the website of the regulatory authority with a provision to obtain comments or
remarks from any Indian resident for a minimum period of 15 days.

6.2 Third Party Audit, Inspections and Directions

For certain industries like Red category industries and hazardous industries to begin with,
Government may notify that the Annual Compliance Statements shall be audited by
competent and reputed third party auditors before submission to the concerned regulators.

The regulatory authority under their Acts & Rules shall mandatorily take up inspections of the
industries which fail to submit the Annual Compliance Statement and take further necessary
action as stipulated under their respective Acts & Rules.

The regulatory authority, on its own or through their Empaneled Accredited Auditors, shall
carry out the verification of the Annual Compliance Statement / Audited ACS submitted along
with the comments or remarks obtained. In case, non-compliances or lapses are noticed, the
regulatory department shall inspect and take the necessary action as per their respective Acts
& Rules.

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6.3 Empanelment of Environment & Safety Auditors
The reputed firm having expertise in the matters of environmental audit as well as safety audits
etc. shall be empaneled and notified by the concerned department to conduct the respective
Audits.

6.4 Renewals of CFO / Factory Licenses

Regulatory authorities shall renew clearance based on ACS/Audited ACS. For all firms in full
compliance, renewals for licensing and operation will be issued immediately/automatically.

In addition, the Government intends to set up an Industry Registry (Unified Information

System) of all industrial units in the state of Andhra Pradesh as the central compliance
monitoring system. The registry will record for each industrial unit the submission details of
annual compliance statements, audits conducted, directions issued etc. on all environmental
and safety compliance parameters.

7. The Way Ahead

The Government realizes that the Strategic Environmental Assessment approach for siting of
industrial units is being attempted for the first time. It is believed that this detailed exercise of
Strategic Environmental Assessment – both at the landscape level and at the industrial project
specific level will pave the way for establishing an environmentally sustainable industrial
development model in the state of Andhra Pradesh.

Further the Government has taken cognizance of recent industrial accidents and intends to
strengthen and imbibe greater safety culture in all industrial units. The Government wants to
transit from clearances approach to self-compliances, monitoring and third-party audit
systems for greater conformance of environment and safety norms.

The Government is committed to this vision and will ensure the implementation of this policy
in a time bound manner.

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