CPCB becomes Environment Relief Fund manager under amended 2024 scheme

India's Central Pollution Control Board assumed charge as Fund Manager of the Environment Relief Fund from January 1, 2025, under the Environment Relief Fund (Amendment) Scheme, 2024. The shift digitises and accelerates environmental compensation, tightening accountability for industries handling hazardous substances.

The Central Pollution Control Board assumed charge as Fund Manager of the Environment Relief Fund from January 1, 2025, under the Environment Relief Fund (Amendment) Scheme, 2024, notified in the Gazette on December 17, 2024. The amendment, made under Section 7A(3) of the Public Liability Insurance Act, 1991, empowers CPCB to oversee fund disbursement, build an online implementation portal, and coordinate environmental restoration. It replaces the earlier model where United Insurance Company Limited was custodian, vesting the fund directly with the Central Government for a five-year period.

Industries handling hazardous substances are directly affected, as the scheme reshapes how environmental compensation claims are settled. The fund now draws on contributions under the Public Liability Insurance Act, 1991, amounts levied under the National Green Tribunal Act, various penalties, and investment returns. A new clause empowers CPCB or State Pollution Control Boards to propose restoration plans for areas hit by hazardous incidents, shifting focus from compensation toward proactive remediation. District Collectors and the Central Government direct disbursements, with funds deployed within 15 days of receipt.

Affected industries should prepare for faster claim settlements and engage with the new digitised implementation portal as CPCB operationalises the scheme. Annual ERF accounts will now be examined by independent auditors from a government-approved panel, and administrative expenditure has risen from 1% to 2% to support expanded oversight and digital operations. Entities should monitor CPCB guidance on restoration-plan proposals and quarterly investment reviews, as the 2024 update replaces the 2008 ERF Scheme and reinforces compliance obligations across hazardous-substance handling.

Key figure — Disbursement timeline: funds to be deployed within 15 days of receipt