Paper Industry is one of the highest polluting industries in India and is highly water intensive. Relatively large wastewater has been discharged from the paper industry which releases high pollution load to the environment. Necessary Steps are been taken to reduce the pollution causing discharges, especially water which is an integral part of the pulp and paper industrial functioning. In the paper, industry water is required for cleaning and washing purposes also. Among all the industries in the world paper industry provide the highest water polluters to the Environment. The paper industry is the largest user of energy resources from the Environment. The main aim of the paper is to reduce the effects caused to the Environment due to the disposal of wastewater from the paper industry. In the manufacturing process, a large number of lignin compounds and non-bio degradability substance present in the wastewater released to the environment which causes lethal effects to the aquatic organisms, reduce the toxicity and improve the biodegradability.