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Use of environmental compensation funds by CPCB
Presently, 24 projects are ongoing and are being funded with the National Green Tribunal (NGT) environmental compensation (EC) fund. The “estimated committed liability in this regard is Rs 138.38 crore”, according to the Central Pollution Control Board (CPCB) report of April 29, 2025 to NGT.
NGT January 21, 2024 had directed CPCB to file a report disclosing the status of fund audits, enclosing the latest assessment of EC fund.
The CPCB report said that all accounts in CPCB, including “NGT EC 25 per cent, NGT EC 75 per cent and 23 specific purpose accounts” are audited by the statutory auditor appointed by the Comptroller and Auditor General (CAG) for each financial year.
On February 3, 2017, the NGT issued a directive in the case of Samir Mehta vs Union of India & Ors, mandating each State Pollution Control Board (SPCB) to allocate 25 per cent of the environmental compensation funds received due to NGT orders to the CPCB. Furthermore, CPCB was instructed to establish a distinct account for these funds and to deposit 25 per cent of the environmental compensation amounts it receives from various NGT orders into this account.
Subsequently, on February 7, 2017, the NGT instructed CPCB to create a separate account specifically for the received NGT EC funds and to develop a policy for utilising these funds, including conducting research and monitoring environmental standards.
The NGT order of April 20, 2017 directed CPCB and SPCBs to formulate a detailed action plan for prevention and control of pollution under their jurisdiction and submit to the tribunal for appropriate orders.
CPCB filed an application January 11, 2019, wherein CPCB placed a scheme proposing 11 activities of rejuvenation and protection of environment out of EC fund available with CPCB. NGT January 22, 2019 allowed CPCB to proceed with the proposal.
The guidelines for the utilisation of EC funds were developed by CPCB which outlines a framework for screening, evaluating and recommending projects for financial assistance under EC funds.
The report stated that the project proposals from CPCBs, SPCBs and PCCs seeking financial assistance under the NGT EC funds are evaluated by the Committee for Evaluation and Recommendation of Projects for Financial Assistance under EC Funds, based on their relevance to the 11 specific activities and merit.
The Committee for Evaluation and Recommendation of Projects for Financial Assistance under NGT EC Funds is headed by Member Secretary, CPCB and comprises experts from the Department of Science and Technology, CSIR-National Environmental Engineering Research Institute, Ministry of Environment, Forest and Climate Change and CPCB.
As of February 28, 2025, 67 projects within the 11 specific activities have been funded from NGT EC funds at a total sanctioned cost of Rs. 229.63 crore. Out of this, Rs 68.26 crores have been utilised.
Out of 67 projects, 24 projects are ongoing (including expenditure such as sampling and analysis charges, purchase of equipment / consumables, and other expenses towards NGT assignments conducted by Regional Directorates of CPCB) with an estimated committed cost of Rs 138.38 crore yet to be released. These projects are in the larger interest of the environment, for its preservation and protection.
CPCB has central and regional environmental laboratories, which monitor environmental parameters and its compliance to stipulated standards. Thus, it contributes to the planning / execution of environmental restoration projects and programmes in the country.
The evolving and increasing scientific and regulatory demands have intensified the workload and there is need to strengthen the laboratories. “In response to this growing demand, and in recognition of the need to strengthen the laboratory’s capabilities, projects are partly funded under the NGT EC funds to strengthen and upgrade the laboratories.”
The CPCB report informed NGT that environment remediation projects have been funded from NGT EC funds such as the restoration of Phuldera drain, wherein an amount of Rs 62.5 lakh has been utilised. Likewise, a restoration plan for environment, public health and groundwater around Panipat refinery has been prepared and Rs 780 lakh has been released to the Haryana SPCB for implementation of the plan.
NGT demands reports on illegal coal mining in Dhanbad
The eastern bench of NGT April 24, 2025 reprimanded the Deputy Commissioner, Dhanbad and Jharkhand State Pollution Control Board on for failing to file reports on illegal coal mining in the state.
The deputy commissioner was directed by NGT December 4, 2024 to file a fresh affidavit, bringing on record the current status of seizures of illegally mined and transported sand and FIRs lodged against the environmental violators.
Even though four months and 20 days have passed, the deputy commissioner has not filed the affidavit. “This shows complete inaction and dereliction of duty on the part of the Deputy Commissioner, Dhanbad,” the court noted.
Similarly, the Jharkhand State Pollution Control Board has yet to submit its affidavit indicating the decision on environmental clearance for the offenders. Both organisations were instructed to submit their affidavits within a week.
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