Environment Compensation Regime

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Environment Compensation Regime

  • The National green Tribunal has asked CPCB (Central Pollution Control Board) to submit information about compliance and non-compliance of-
    • Effluent treatment plants
    • Sewage treatment plants
    • Common effluent treatment plants
  • NGT has also asked CPCB to evolve an environment compensation regime for the plants which do not comply with prescribed discharge standards.


  • In May 2020, CPCB submitted a report to NGT regarding non-complying wastewater treatment plants operating across several states in India.
  • As per the report, there are
    • 191 CETP (Common effluent treatment plants) operational in India
    • 128 of them are complying
    • 63 are non- complying.
  • Of the 63 non-complying plants-
    • 22 have been issued show-cause/closure notices
    • Legal cases have been filed against 9 CETPs
    • No action has been taken against remaining 32 CETPs.
  • Across various states, there are at least new 80 CETPS under construction phase.
  • Distribution of non-complying CETPs across states is –
    • Gujarat- 17
    • Rajasthan- 11
    • Tamil Nadu- 9
    • Delhi- 9.
  • In 2019, an inspection carried out by CPCB revealed that some of the CETPs were operating without any consent renewal.
  • When CPCB was asked about environmental compensation regime for non-compliant CETPs, the CPCB informed NGT about a formula for environment compensation regime-
    • EC = PI x N x R x S x LF
    • EC is environmental compensation in rupees
    • PI is pollution index
    • N is number of days of non-compliance
    • R is the factor in rupees for EC
    • S is the factor for scale of operation
    • LF is factor for location of the industry
  • Environmental compensation can be levied by CPCB only when directions have been issued to non-complying unit under Environment Protection Act, 1986.

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