New Delhi: Ina major push to improve the business climate in the capital, the Delhi Government has announced a significant reform that will simplify environmental approvals for industries classified under the Green Category. Starting August 2025, applications for Consent to Operate (CTO) from these industries will be automatically deemed approved if no official decision is made within 20 days, a drastic improvement from the previous 120-day approval period. The reform is being hailed as a landmark move under Delhi’s Ease of Doing Business initiative and is expected to benefit a wide range of non-polluting, low-risk industries.

Delhi’s Environment and Industries Minister Manjinder Singh Sirsa, while announcing the decision, described it as a “historic reset” in the way Delhi supports enterprise. He emphasized that this reform had been a long-standing demand from the business community and was finally addressed through the leadership of Chief Minister Rekha Gupta and Lieutenant Governor Vinai Kumar Saxena.

Sirsa remarked that what hadn’t been accomplished in five decades has now been delivered under the double-engine government, adding that Delhi is now “open for responsible business.” He further stated that the government is moving away from a system of unnecessary licenses and outdated approvals, replacing it with a model that is pro-growth, pro-people, and purpose-driven.

The reform will directly impact over 65 types of industries categorized as green, which are considered non-polluting and relatively safe for the environment. These include sectors like apparel manufacturing (excluding dyeing or bleaching processes), aluminium and PVC product units, ayurvedic medicine manufacturing without boilers, cold storage operations, wooden and steel furniture production, confectionery units using electric ovens, optical goods manufacturing, toy assembly, soap and detergent units, battery container production, and packaging and cardboard manufacturers, among others.

All of these sectors, many of which are dominated by micro, small, and medium enterprises (MSMEs), were previously subjected to long and often frustrating bureaucratic delays. Now, under the new policy, if a CTO application is not addressed within 20 days, it will be automatically treated as approved, eliminating the need for further follow-ups or additional paperwork.

The Delhi Government believes this reform will be a game-changer for small businesses that have historically struggled under the weight of regulatory red tape. Most of the green category industries are run by small and medium-scale entrepreneurs who can now operate with greater freedom and certainty under a trust-based, time-bound clearance system. Minister Sirsa noted that this move will help these enterprises shift their focus from chasing approvals to scaling their operations and contributing more effectively to the local economy.

This decision is also closely aligned with the broader national vision of Viksit Bharat – Viksit Delhi and reflects the capital’s commitment to responsive and modern governance. It forms a key part of Delhi’s ongoing Single Window Clearance initiative, which aims to eliminate redundant approvals and create a streamlined, paperless, and transparent framework for industrial operations. By reducing bureaucratic friction and empowering entrepreneurs, the Delhi Government hopes to foster a more dynamic, business-friendly environment that promotes both sustainable development and economic growth.