The Government of India issued a policy statement for the abatement of Pollution in February 1992. The policy emphasises that it is not enough for the Government to notify laws which are to be complied with, and affirms the Government's intention to integrate environmental and economic aspect in the development planning, with the stress on the preventive aspects for the pollution abatement and promotion of technological inputs to reduce industrial pollutants. The overall policy objectives is to integrate environmental considerations into decision making at all levels. Specific steps identified to meet this objective are:

The Supreme Court of India has been playing a very proactive role in trying to save the further degradation of environment. In order to save Ganga from water pollution, a public interest litigation (PIL) was filed by Advocate M.C. Mehta as many leather tanneries in Kanpur were discharging untreated effluent in it (M. C. Mehta vs. Union of India, 1986). There were not many disputes that the discharge of the trade effluents from these tanneries were causing considerable damage to the life of the people who use water from Ganga and also to the aquatic life.

A fiscal plan for setting up of common effluent treatment plants for Indian Tanning Industry (March 1986) was prepared by the committee constituted by the Directorate General of Technical Development (GOI).

This committee observed that Tanneries situated all over the country have faced with the problem of treating their effluent. Seized with the problem of finding out a solution, Central Leather Research Institute, (CLRI) Madras has brought out a Management Investment Report, as early as 1976. A monograph entitled “ Treatment of Tannery Effluents” was prepared by the scientist of CLRI, which recommended four types of waste water treatment so far the tanneries were concerned. This was for the first time when court recommended the concept of common effluent treatment plants under the Ganga Action Plan, to check the further pollution of the river. As per the first phase of the Ganga Action Plan (GAP), a Common Effluent Treatment Plant for treating the wastewater generated by tanneries in Jajmau was established with the help of Dutch government. CETP project is one part of the GAP that is meant for cleaning river Ganga. Later, the courts in all their judgements regarding water pollution started suggesting CETP as a solution. The CETPs have also become an eyewash to run dirty operation as it merely becomes a formality to evade any legal action.

Delhi Pollution Control Committee (DPCC) has divided Delhi (National Capital Territory) into 28 industrial estates. Industrial estates in Delhi houses a number of small-scale industries and pose a serious threat to the environment of Delhi. Small-scale sector is not ready to invest in pollution control measures because of unprofessional lack of financial measures, lack of technical expertise, unavailability of land etc. In order to control water pollution in the state idea of installing Common Effluent Treatment Plants was promoted by the DPCC. For this a detailed project has been prepared by National Environment Engineering Research Institute (NEERI), Nagpur along with DPCC for 28 industrial estates 15 CETP's have been proposed. These 15 CETP’s cover 21 industrial estate in Delhi and for the remaining area need was not felt for installing CETP’s.
A total cost of 90 crores has been estimated by NEERI. These CETP’s will be constructed under the World Bank's "Industrial Pollution Control Scheme", for which 50% cost is contributed by the industry itself out of which 30% can be taken as soft loan from Banks and direct CETPs contribution of the industry is only 20%. Remaining 50% is given as a subsidy by the government of India.