New Delhi: The Environment Ministry has sought greater transparency in the manner in which funds from the Environment Relief Fund are distributed to victims of major environmental disasters.
The draft rules issued by the ministry on Thursday ask fund managers of funds to disburse all payments to central and state pollution control boards (PCBs). The ministry is inviting comments from stakeholders for 60 days from July 25.
The Ministry proposed these amendments in the Environment Relief Fund Scheme, 2008.
Under the proposed amendments, the fund manager will be required to disburse the funds collected to the PCB when ordered by the central government, and follow up with the PCB regarding the utilisation of the funds.
The Environment Relief Fund, set up after the 1984 Bhopal gas tragedy, is supposed to disburse funds to help victims of major industrial accidents. However, according to a 2023 Rajya Sabha disclosure, this fund has not disbursed any money since 2019.
The total amount in the fund till FY23 was According to the annual report of fund manager United India Insurance Company Ltd, the amount is Rs 1,060.95 crore.
Draft Regulations
According to the draft regulations, this fund will also recover penalties under the Public Liability Insurance Act, as well as interest or returns earned on the investment of the Environment Relief Fund. These funds will be monitored separately by the fund manager, the proposal states.
The Central government has proposed changes in the procedure followed under the Public Liability Insurance Act, which was enacted to compensate victims of major industrial disasters.
Now under the proposed changes, the central government will assess the damages after receiving a complaint under the Act, and order the fund manager to disburse funds to the central or state PCBs for compensation.
The government has proposed that the central or state PCBs or fund managers will maintain proper records and documentation of the utilisation of funds.
The proposal states that the PCB Fund will also submit an annual report to the Central Government detailing the progress made in environmental remediation.
The proposal states that the Centre will also monitor the utilisation of funds disbursed to pollution control boards.
