Reply by the Central Pollution Control Board (CPCB) in compliance to the National Green Tribunal (NGT) order dated January 21, 2024 in the matter of ‘News item titled “Feeling anxious? Toxic air could be to blame” appearing in Times of India dated 10.10.2023’.

NGT had directed CPCB to file a report disclosing the status of the audit of the funds enclosing the latest audit report in respect of environmental compensation (EC) fund.

The CPCB report said that all accounts in CPCB including "NGT EC 25%, NGT EC 75% and 23 specific purpose accounts" are audited by the Statutory Auditor appointed by the Comptroller and Auditor General (CAG) for each financial year. NGT vide order dated February 3, 2017 (Samir Mehta Vs Union of India & Others) had directed every State Pollution Control Board (SPCB) which has received environmental compensation amounts pursuant to NGT orders to remit 25 per cent of the said amount to CPCB. CPCB was also directed to maintain a separate account for this fund and deposit 25 per cent of the EC amount it receives from various NGT orders into the account.

Thereafter, NGT vide order, February 7, 2017 (Samir Mehta Vs Union of India & Others) directed CPCB to maintain separate head of account for the purpose (NGT EC amount received) and frame policy for spending EC amount and resolution thereof including research and monitoring of environmental standards.

The NGT order of April 20, 2017 (Samir Mehta Vs Union of India & Others) 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.

The CPCB filed an application, January 11, 2019 wherein CPCB placed a scheme proposing various 11 activities for execution for rejuvenation and protection of environment out of the Environment Compensation funds available with CPCB. The NGT, January 22, 2019 allowed CPCB to proceed with the proposal.

The guidelines for the utilization 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, SPCB's 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 1 1 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 (DST), CSIR-National Environmental Engineering Research Institute (NEERI), Ministry of Environment, Forest and Climate Change (MoEF&CC) and CPCB.

As of February 28, 2025, 67 projects within the II specific activities have been funded from NGT EC funds at a total sanctioned cost of Rs. 229.63 crores. Out of this, Rs 68.26 crores have been utilized. 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 crores, yet to be released. These projects are in the larger interest of the environment, for preservation and protection of environment.

That the CPCB has central and regional environmental laboratories which monitor environmental parameters and its compliance to stipulated standards and thus, contribute to the planning/ execution of environmental restoration projects and programs 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 the NGT that environment remediation projects have been funded from NGT EC funds such as, restoration of Phuldera drain wherein an amount of Rs 62.5 Lakhs has been utilized.  Likewise, a restoration plan for environment, public health and ground water around Panipat refinery has been prepared and Rs 780 lakhs has been released to Haryana SPCB for implementation of the plan. "Presently, 24 projects are ongoing and are being funded from-NGT EC funds and estimated committed liability in this regard is Rs 138.38 crores," stated the report of April 29, 2025.