The main focus of this paper is to bring out the cost effectiveness of cleaner production and the role played by cleaner production in minimizing the health hazards of pollutants in the workplace. Improvement in workplace health hazards due to implementation of cleaner production has been illustrated with the results of the study. This study was carried out in 16 Manufacturing units in two states of Maharashtra and Gujarat in India. The results clearly shows with the help of cost benefit analysis that cleaner technologies not only add to the bottom line of the company but also minimize exposure to toxic chemicals like Ammonia, phenol, carbon tetrachloride, toxic dust, etc. The main driving forces motivating the firms to go in for cleaner production are evaluated. It is found that in most of the units safety and health factors were ranked as one among the first four driving forces behind implementation of cleaner technologies. The paper ends with recommendations for the promotion of cleaner technologies.