The Central Government has announced amendments to the Environment Relief Fund Scheme, 2008, through the Environment Relief Fund (Amendment) Scheme, 2024. These amendments introduce several key changes to the management and utilization of the fund.
The Relief Fund is now explicitly vested in the Central Government.
The sources of the fund are clarified to include:
- Amounts remitted as compensation or relief for environmental damage under Section 24 of the National Green Tribunal Act, 2010.
- Penalties and additional penalties imposed under Sections 14, 15, or 17 of the Public Liability Insurance Act.
- Interest or returns earned on fund investments.
The Central Pollution Control Board (CPCB) will serve as the fund manager for a period of five years, starting January 1, 2025. This replaces the previous role of United Insurance Company Limited.
Payments to the fund can now be made via Demand Draft or other electronic modes. The percentage of the fund allocated for administrative expenses has been increased from 1% to 2%.
The Fund Manager (CPCB) will develop and maintain an online portal for implementing the scheme.
The Fund Manager will disburse funds based on orders issued by the District Collector or the Central Government.
The fund will be invested in public financial institutions (as defined in the Companies Act, 2013) and savings accounts to ensure liquidity for timely disbursements. Interest earned will be quarterly cumulative and reinvested, as will the full maturity value of fixed deposits. The Fund Manager will submit annual statements of accounts to the Central Government.
When a Collector orders payment from the fund, they will forward the order (Form II) to the Fund Manager, who will release the funds within 30 days, subject to availability.
A new paragraph 7A outlines the process for using the fund for environmental restoration. The Fund Manager will earmark funds allocated under Rule 3A of the Public Liability Insurance Rules, 1991. The CPCB/SPCBs will create restoration plans with cost estimations for Central Government approval. Upon approval, the Central Government will order disbursement to the CPCB/SPCBs.
The fund’s accounts will be audited by an independent auditor appointed by the Central Government from a panel approved by the Comptroller and Auditor-General.
These amendments aim to improve the management, transparency, and utilization of the Environment Relief Fund, ensuring its effective use in providing relief and restoring environmental damage caused by industrial accidents.
