News: Centre notifies rules governing utilization of Environmental Protection Fund collected through environmental penalties.
About Environmental Protection Fund
- Created under: The Environmental Protection Fund has been created under the Environment (Protection) Act, 1986.
- The framework for its operation is provided under the Environmental (Protection) Fund Rules, 2026.
- Enabled by: The creation of the Environmental Protection Fund was enabled by the Jan Vishwas Act, 2023.
- Purpose of the Fund: The fund is meant to utilize penalties collected from environmental violations for environmental protection and improvement.
- Audited by: Comptroller and Auditor General of India (CAG)
- Permitted Uses of the Fund: The Rules specify 11 categories of activities for which the fund can be used.
- The fund can be used for the installation, operation, and maintenance of environmental monitoring equipment.
- It supports capacity building, including the establishment and upgradation of environmental laboratories.
- The fund can be utilised for remediation and restoration of environmental damage.
- It may be used for conducting studies as directed by courts and environmental tribunals.
- Any other activity considered necessary for environmental protection may also be approved.
- Administrative Expenses: The fund can be used to meet administrative expenses. Administrative expenditure is capped at 5% of the total funds available in a financial year at the Centre or state level.
- Management of penalties
- The funds collected through the penalties shall be credited to the consolidated fund of India (CFI) and thereafter transferred to the Public Account of India.
- 75% of the penalty amount collected will be transferred to the Consolidated Fund of the concerned State or Union Territory. The remaining 25% of the penalty will be retained by the Central Government for national-level environmental initiatives.
