Source: TOI
Subject: Environment
Context: The Union Government has notified detailed rules for the utilisation and administration of the Environmental (Protection) Fund, operationalising provisions introduced under the Jan Vishwas Act, 2023.
About Environmental Protection Fund:
What it is?
- The Environmental (Protection) Fund is a statutory fund of the Government of India created to utilise penalties imposed for violations of environmental laws for pollution control, environmental restoration, monitoring, research, and capacity building.
Established in:
- Provided for under the Environment (Protection) Act, 1986
- Operationalised through rules notified in January 2026
- Strengthened by the Jan Vishwas Act, 2023, which decriminalised several environmental offences while retaining monetary penalties
Nodal authority:
- Administered by the Ministry of Environment, Forest and Climate Change (MoEFCC) or any body notified by the Central Government
Aim: To ensure that pollution penalties are recycled for environmental protection, remediation, clean technology promotion, and strengthening regulatory institutions.
Key features:
- Source of funds: Penalties under the Air (Prevention and Control of Pollution) Act, 1981, the Environment (Protection) Act, 1986, interest from investments, and other prescribed sources.
- Permitted uses (11 activities): Pollution prevention and mitigation, remediation of contaminated sites, environmental monitoring equipment, clean technology research, IT-enabled systems, laboratory infrastructure, and capacity building of regulatory bodies.
- Revenue sharing: 75% of penalty proceeds transferred to the Consolidated Fund of the State/UT, 25% retained by the Centre.
- Governance mechanism: Creation of dedicated Project Management Units at Central and State levels.
- Oversight & transparency:
- Comptroller and Auditor General of India (CAG) to audit the Fund
- Central Pollution Control Board (CPCB) to develop and maintain a centralised online portal for fund implementation
Significance:
- Strengthens the “polluter pays principle” by directly linking penalties to environmental remediation.
- Converts decriminalisation into deterrence with accountability, avoiding regulatory dilution.
- Enhances Centre–State cooperation in environmental governance through revenue sharing.
