PESO Approval for Battery Manufacturing & Lithium Storage Facilities

The New Battery Rush — But a Hidden Roadblock

When one of our clients — a startup setting up a lithium battery assembly unit in Gujarat — was ready to launch, everything looked perfect. The machines were installed, workers trained, and BIS testing cleared. But one unexpected issue delayed their plant by six weeks: they didn’t have PESO approval for storing the solvent used in their electrode coating process.

Their tank capacity was small, yet it involved Class A petroleum solvents like NMP and DMF — which fall directly under the Petroleum Rules, 2002.

That’s when they called Green Permits. Within days, our team aligned their PESO, fire, and pollution board compliances — and the plant was live within a month.

This story isn’t rare. As India’s energy storage industry accelerates, many entrepreneurs discover that PESO licensing is not just a “big refinery thing” — it’s a mandatory compliance for most battery manufacturing and lithium storage facilities.

Understanding PESO and Why It Matters for Battery Units

The Petroleum and Explosives Safety Organisation (PESO) works under the Ministry of Commerce and Industry, ensuring that any site dealing with flammable liquids or compressed gases follows the highest safety standards.

Most lithium cell and battery units handle at least one of the following:

• Petroleum solvents (like NMP, DMF, IPA, acetone) for electrode coating and cleaning.
• Compressed gases (like argon, nitrogen, hydrogen) for production or drying.
• Flammable electrolytes or additives.

Even if your core product isn’t explosive, the materials around it can be. That’s why PESO licensing is required for:

• Storage of flammable liquids in drums, barrels, or tanks.
• Use of compressed gas cylinders or manifolds.
• Handling or transportation of petroleum-based materials inside factory premises.

Without this license, the factory can’t legally store, handle, or transport these substances — and the consequences of a single incident can be financially and reputationally devastating.

When Exactly Do You Need PESO Approval?

Think of it like a “fire safety clearance plus chemical permit” rolled into one.

You’ll need PESO approval if your plant:

• Stores solvents or electrolytes derived from petroleum.
• Uses gas cylinders or pipelines for inerting, drying, or welding.
• Handles flammable or pressurised materials beyond the prescribed threshold limits.

Examples:

• Lithium Cell Line: Uses NMP solvent for electrode coating → PESO required under Petroleum Rules, 2002.
• Module/Pack Line: Only battery assembly with adhesives and no solvents → PESO usually not required.
• Battery Recycling Unit: Uses LPG or compressed gases in furnaces → PESO required under SMPV(U) Rules, 2016.

Core Regulations You Must Know

Rule / Act	Scope of Control	Applied To	Key Documents Needed
Petroleum Rules, 2002	Storage, transport & handling of petroleum Class A/B/C	Solvents, electrolytes, fuels	Site layout, MSDS, fire plan, distance chart
SMPV (U) Rules, 2016	Handling of compressed gas systems	Argon, hydrogen, nitrogen, etc.	Cylinder/pressure system design approval
Explosives Act, 1884	Legal framework for safety	All facilities storing explosive/flammable materials	PESO license & periodic renewal
Battery Waste Management Rules, 2025	EPR, labelling, and traceability of batteries	All manufacturers/importers	QR/barcode with CPCB registration number
BIS CRS (IS 16046 Part 2)	Product safety standards for lithium batteries	Manufacturers & importers	Compulsory Registration Certificate

Facility Layout & Safety Requirements

Lithium storage and solvent-handling areas need thoughtful design — not just for compliance but for long-term operational safety.

Here’s what inspectors often look for during PESO site approval:

• Safe distance between solvent tanks and main production area.
• Ventilated solvent rooms with explosion-proof electrical fittings.
• Spill containment and flame arrestors.
• Hydrant and sprinkler systems as per NBC Part 4 standards.
• Emergency exits and signage visible even in low light.
• Trained personnel with safety drills recorded monthly.

Globally, lithium storage follows IFC 2024 guidelines, which India is gradually aligning with — limiting the amount of battery storage per room and ensuring heat detection and suppression systems are installed.

Integrating PESO with BIS and CPCB Compliance

Most companies treat each compliance separately, but the smart way is to plan PESO + BIS + CPCB together.

Compliance Type	Objective	Authority	Renewal Period
PESO License	Safety for storage of flammable materials	Petroleum & Explosives Safety Organisation	5 years
BIS Registration	Product conformity under IS 16046	Bureau of Indian Standards	2 years
EPR Registration	Traceability & recycling compliance	Central Pollution Control Board	5 years

Coordinating these at once helps reduce inspection overlaps and speeds up approvals by 25–30%.

The Real Risks of Ignoring PESO Compliance

Many small and mid-scale units skip PESO applications, assuming it’s only for refineries or oil depots. That’s a costly mistake.

Possible risks include:

• Plant shutdown orders under the Explosives Act, 1884.
• Environmental penalties by SPCB under the Battery Waste Rules.
• Rejection of fire NOC or insurance claims after an incident.
• Loss of credibility in supplier audits by OEMs or export clients.

Regulatory bodies like CPCB and PESO have become highly digitalized — they now track cross-verification between BIS, EPR, and petroleum licenses. A mismatch can trigger a red flag during audits.

How Green Permits Helps Businesses Stay Ahead

We’ve supported over 200 factories and startups in navigating India’s compliance web — from EPR registration and BIS CRS to PESO and SPCB approvals.

Here’s what we typically do:

• Assess your facility layout and identify PESO applicability.
• Prepare technical drawings, fire-safety schematics, and MSDS documentation.
• File PESO license applications and coordinate with CCoE regional offices.
• Align your BIS, CPCB, and Fire NOC timelines so all certifications move in sync.
• Provide compliance monitoring dashboards to track renewal alerts.

Whether you’re a battery manufacturer, energy storage system integrator, or EV component producer, Green Permits ensures that your factory runs with zero regulatory surprises.

Conclusion — Compliance Is the New Competitive Edge

India’s battery and energy storage growth is unstoppable — but with great scale comes great responsibility. PESO approval is not just a license on paper; it’s a validation that your facility values safety, sustainability, and reliability.

By integrating PESO, BIS, and CPCB EPR at the early planning stage, businesses save time, money, and future headaches.

At Green Permits Consulting, we believe compliance should be simple, strategic, and stress-free.

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