Pulp and paper making process requires large amount of water, energy, chemicals and wood resources, and produces various wastes and emissions that must be controlled or treated. The aim of the study is to determine the economic impacts of pollution in pulp and paper industry and to investigate the root causes of pollution and develop a model that can bring down pollution in pulp and paper industry. A detailed review related with Pollution in chemical Industries especially in Pulp and Paper Industry was conducted. After Identifying major pollutants in paper industry and impacts in human health as well as plant machineries from literature review, the next step was to prove the existence of pollution scientifically using statistical tools and techniques. It was identified that pollution not only has a direct impact on employee health but also has an effect on the management of the company economically. Also pollutant atmosphere in highly chemical exposed areas may lead to inefficient utilization of working hours. At the heart of this approach is to calculate the cost of pollution as there were no studies conducted in India related to cost of pollution in Chemical industries. The research also suggests certain alternative solutions to bring down the pollution in pulp and paper Industry

Keywords: Pollution in chemical industries, Cost of pollution, Economic model for pollution control