09 March 2016 Current Affairs: Union Government has released a new four-colour classification scheme for industries based on their pollution potential. The four-colour classification scheme of industrial sectors based on the Pollution Index (PI) . Pollution Index is a function of the(i) Emissions (air pollutants),(ii) Effluents (water pollutants),(iii) hazardous wastes generated and(iv) Consumption of resources.Under the new categorisation system, industries which pollute the most have been put in the red category while the moderately polluting units are classified in orange category.Industries that have a significantly low polluton load have been placed in the green category while those that operate without causing any pollution have been categorised in white category.Environmental Impact Assessment (EIA) compares various alternatives for a project and seeks to identify the one which represents the best combination of economic and environmental costs and benefits. Eight steps of EIA involves screening, scoping impact analysis,mitigation,reporting,review,decision making and post monitoring.The new four-colour scheme was announced as per the resolution adopted at the two-day State Environment and Forest Ministers' Conference in April 2015.The re-classification of industries is based on the Pollution Index (PI) scores and the new categories are as follows Red category: 60 industries, including sugar, thermal power plants, paints and others (pollution index score of 60 and above)Orange category: 83 industries like coal washeries and automobile servicing (pollution index between 41 and 59).Green category: Industries like aluminium utensil manufacturing and dal and flour mills(pollution index score of between 21 and 40).White category: 36 industries like air coolers and cotton and woollen hosiery(pollution index score of up to 20).White category industries will not require Environmental Clearance and Consent. That will help them get funds from lending institutions.