The environmental problems of paper board industry are not limited by the high water consumption, generate wastewaters and solid wastes. This paper presents the paper board industry effluent treatment plant components performance and physio-chemical characteristics of wastewater and sludge. In ETP operation most important factors is effluent characterization, flow rate, aeration tank dissolved oxygen (DO) level, mixed liquid suspended solids (MLSS), food to micro-organism ratio (F/M), sludge volume and chemical addition for nutrients and coagulant. The result shows that the performance of effluent treatment plant based on the permissible limits prescribed by regulatory agencies and can be recycle an entire treated effluent into the board manufacturing process. The fixed capital cost was 700 lakhs-Indian Rupees (Rs.) and annual operation and maintenance cost was estimated Rs. 180 lakhs (without RO plant). Reuse of treated effluent in pulp process and sludge in sun dry board manufacturing and composting were adopted to achieve the target of sustainable development for ecological and economical gains.