Context

• Centre notifies Rules for use of funds collected through penalties under environmental laws

Environmental Protection Fund

• Constituted under the Environment (Protection) Act, 1986, to strengthen environmental remediation and restoration.
• The fund was created out of the amount of penalties imposed for violations under various green laws about the prevention of air (Air Act, 1981) and water pollution (Water Act, 1974), and the broader Environment (Protection) Act, 1986.
• The Central Government, through the Environmental (Protection) Fund Rules, 2026, elaborates on the activities for which this fund can be utilised.
• The Rules define the Union Minister for Environment as a “competent authority.”
• The funds collected shall be credited to the consolidated fund of India and then transferred to the Public Account of India.

Source: The Indian Express