A majority of companies across industries in India are small and medium enterprises (SMEs) and these account for a huge segment of the country’s economy. According to a report by the Government of India, around three million SMEs are currently operational in the country, generating over 40% of the nation’s GDP. However, along with their role in the economy, SMEs also account for over 70% of industrial pollution, which poses a serious threat to the environment. This high contribution of SMEs to pollution is largely due to the obsolete technologies they use and a general lack of awareness. According to Kurian Joseph, Associate Professor, Center for Environmental Studies, Anna University, “SMEs account for a majority of environmental pollution due to their poor production methodologies and obsolete waste management techniques.” 

To mitigate environmental issues, SMEs were urged to adopt conventional technologies such as end-of-pipe systems for waste treatment, but these failed upon large-scale implementation due to cost constraints. In response to this, industry associations and the government have undertaken several initiatives to establish industrial sustainability and ecological safety through waste minimisation and the development of cleaner production technologies. The initiatives have not only helped SMEs in terms of waste management but also boosted their bottomlines through resource optimisation. Adopting the new practices also helps SMEs become compliant with international regulations for ecological safety. A few initiatives that have assisted SMEs in terms of waste minimisation, regulatory compliance and revenue enhancement are discussed below. 


Waste Minimisation Circle (WMC) 

Conceived as part of an integrated project through the National Productivity Council (NPC) in 1995-96 , the WMC is a government initiative aimed at developing cleaner production technologies and sharing information on pollution prevention. The second phase of the project, commenced in 1997-98 , aimed at enhancing the SME awareness of cleaner production practices. Since its establishment, the project has benefited several SME units in terms of resource optimisation and regulatory compliance. 

SSK Distillery, a small alcohol distillation unit in Maharashtra had an alcohol production capacity of 30 kilolitres per day. Earlier, the facility faced problems pertaining to inefficient treatment of spent wash, resulting in excessive waste generation and regulatory issues. Later, it adopted the Dual Biofermcen Process, a modified fermentation process developed through WMC efforts. The technology reduced the spent wash generation by 40% and increased the production capacity by 100%. 

In another instance, Dintex Dyechem Ltd, a mid-level dye chemical manufacturing firm in Ahmedabad, produced around 150 tonne of vinyl sulfone every month. As the chemical is included in the government’s list of highly toxic agents, the manufacturing unit was under strict surveillance by regulatory agencies monitoring environmental pollution. The company adopted WMC methodology to assess the existing pollutant load and the scope for reducing the load as well as optimising resources such as energy and raw materials. “After the implementation of WMC methodology, we have registered annual savings of around Rs 2 crore on operations like acid recovery, wastewater treatment and product recovery,” says Dinesh S Shah, MD, Dintex Dyechem Ltd. Moreover, the environmental load of the firm has also been reduced remarkably, thus making it compliant with government regulations.