Centre Issues Detailed Rules for Environmental Protection Fund Operations
The Central government has officially notified specific rules that lay down clear procedures for using the Environmental Protection Fund. This fund will now support eleven distinct activities aimed at safeguarding India's environment.
Fund Created from Green Law Penalties
The Environmental Protection Fund originates from penalties imposed for violations under various environmental laws. These laws include those preventing air and water pollution, along with the broader Environment (Protection) Act of 1986. The government established provisions for this fund through the Jan Vishwas Act in 2023.
This act decriminalized several pollution-linked offences but maintained financial penalties for breaking green laws. Penalties can range from a minimum of Rs 10,000 to as high as Rs 15 lakh. All collected penalty amounts feed directly into this dedicated environmental fund.
Eleven Approved Activities for Fund Utilisation
The newly notified rules precisely define how authorities must use the fund. The environment ministry released these guidelines last week. Approved activities include:
- Taking measures for the prevention, control, and mitigation of pollution.
- Remediation of environmental damage at contaminated sites.
- Research and development focused on clean technology.
- Installation, operation, and maintenance of environmental monitoring equipment.
- Capacity building through the establishment of laboratories.
- Development of Information Technology enabled systems and related equipment.
- Capacity building for various green panels and pollution control bodies.
These pollution control bodies include the Central Pollution Control Board (CPCB), the Commission for Air Quality Management (CAQM), and urban local bodies. The fund aims to strengthen their operational capabilities.
Administration and Financial Distribution of the Fund
The rules also specify the administrative framework for the fund. The Union environment ministry, or any body notified by the central government, will manage it. Central and state governments must create dedicated project management units to oversee fund administration.
A key financial provision dictates the distribution of collected penalties. The administering authority will remit 75% of the penalty amount to the Consolidated Fund of the State. The remaining 25% will stay with the Centre to finance various green activities and initiatives.
Oversight and Digital Implementation
To ensure transparency and proper use, the Comptroller and Auditor General of India (CAG) will conduct regular audits of the Environmental Protection Fund. Furthermore, the Central Pollution Control Board (CPCB) has a specific mandate.
The CPCB must develop and maintain an exclusive online portal for implementing these new rules. Once operational, this portal will serve as the primary interface between different authorities and stakeholders involved in the fund's management and utilisation.
This structured approach aims to channel financial penalties into concrete environmental protection measures across the country.
