Environmental (Protection) Fund Rules, 2026

The Ministry of Environment, Forest and Climate Change (MoEF&CC) has introduced new regulations under the Environment Protection Act, 1986. These regulations detail the use of the Environmental (Protection) Fund, which collects penalties from environmental violations under various acts.

Uses of the Environmental (Protection) Fund

• Installation, operation, and maintenance of environmental monitoring equipment, such as air quality monitors.
• Capacity building through the establishment of laboratory setups.
• Remediation of environmental damage, including at contaminated sites.
• Administrative expenses, including salaries and emoluments for project management staff.
• Conducting studies as directed by courts and tribunals.
• 11 activities in total have been listed for fund utilization.

Financial Management and Oversight

• Administrative expenses are capped at 5% of the fund's annual amount with the Centre or state government.
• The Union Minister for Environment, Forest and Climate Change is defined as the "competent authority" for fund approvals.
• Funds collected are credited to the Consolidated Fund of India (CFI) and then transferred to the Public Account of India.

Allocation and Audit

• 75% of penalties collected are remitted to the State's Consolidated Fund, and 25% is retained by the Centre.
• The Comptroller and Auditor General of India will audit the fund, with audit reports submitted to Parliament and state legislatures.

Legal Framework and Penalties

• The Jan Vishwas Act, 2023, facilitates the creation of the environmental protection fund and decriminalizes several pollution-linked offences.
• Penalties for violations range from Rs 10,000 to Rs 15 lakh.