Methodology to Calculate Environment Compensation
Environmental
compensation is a policy instrument for the protection of the environment which
works on the Polluter Pay Principal. Environmental compensation has already
been implemented in various countries, although limited in scope. Experiences
from these implementations are mixed and tend to stress the importance of
certain principles in order to achieve the overall objective of protection of
the environment.
The Hon’ble National Green Tribunal through its various
judgments has empowered the Central Pollution Control Board to lay down the
methodology to assess and recover compensation for damage to the environment
and utilize such amount in terms of an action plan for protection of the
environment.
In
the Landmark Judgement of PARYAVARAN SURAKSHA SAMITI & ANR VS. UNION OF
INDIA & ORS, The Principal Bench of the National Green Tribunal, New Delhi directed
the Central Pollution Control Board to evolve a formula for recovering environmental
compensation and that fund may be kept in a separate account and utilised in
terms of an action plan for protection of environment
The
need was felt after some serious violations against the environment by the
industrial units which also has largely affected the lives of people, the never
forgetting incidents of:
Shriram Foods & Fertilizers Case, etc
Cases
considered for levying Environmental Compensation (EC):
a) Discharges in violation of consent conditions,
mainly prescribed standards / consent limits.
b) Not complying with the directions issued, such as
direction for closure due to non-installation of OCEMS, non-adherence to the
action plans submitted etc.
c) Intentional avoidance of data submission or data
manipulation by tampering the Online Continuous Emission / Effluent Monitoring
systems.
d) Accidental discharges lasting for short durations
resulting into damage to the environment.
e) Intentional discharges to the environment -- land,
water and air resulting into acute injury or damage to the environment.
f)
Injection of treated/partially treated/ untreated effluents to ground water.
THE FORMULA-
The Environmental Compensation
shall be based on the following formula:
EC = PI x N x R x S x LF
Where, EC is Environmental
Compensation in ₹ PI = Pollution Index of industrial sector N = Number of days
of violation took place R = A factor in Rupees (₹) for EC S = Factor for scale
of operation LF = Location factor
1. The
industrial sectors have been categorized into Red, Orange and Green, based on
their Pollution Index (PI) in the range of:
|
Red Category Industrial Sector |
60 and
above- Pollution Index Score |
|
Orange Category Industrial Sector |
41-59 - Pollution Index Score |
|
Green Category Industrial Sector |
21-40 - Pollution Index Score |
|
White Category Industrial Sector |
Upto 20- Pollution Index Score |
2. N,
number of days for which violation took place is the period between the day of
violation observed/due date of direction’s compliance and the day of
compliance.
3. R
is a factor in Rupees, which may be a minimum of 100 and maximum of 500. It is
suggested to consider R as 250, as the Environmental Compensation in cases of
violation
4. S
could be based on small/medium/large industry categorization, which may be 0.5
for micro or small, 1.0 for medium and 1.5 for large units
5. LF,
could be based on population of the city/town and location of the industrial
unit. For the industrial unit located within municipal boundary or up to 10 km
distance from the municipal boundary of the city/town, following factors (LF)
may be used:
|
Population (millions) |
Location Factor
(LF) |
|
1 to <5 |
1.25 |
|
5 to <10 |
1.5 |
|
10 and above |
2.0 |
|
Ecologically
Sensitive Areas |
2.0 |
Notes:
·
minimum Environmental Compensation shall be ₹
5000/day.
·
repeated violations, EC may be increased on
exponential basis, i.e. by 2 times on 1st repetition, 4 times on 2nd repetition
and 8 times on further repetitions.
·
operations of the industry are inevitable and
violator continues its operations beyond 3 months then for deterrent
compensation, EC may be increased by 2, 4 and 8 times for 2nd, 3rd and 4th
quarter, respectively. Even if the operations are inevitable beyond 12 months,
violator will not be allowed to operate.
·
Environmental Compensation (without deterrent
factor). It can be noticed that for all instances, EC for Red, Orange and Green
category of industries varies from 3,750 to 60,000 ₹/day.
·
Besides EC, industry may be prosecuted or
closure directions may be issued, whenever required
Therefore, generalized formula
for Environmental Compensation may be described as:
|
EC= Capital Cost Factor x Marginal Average
Capital Cost for Establishment of Waste or Sewage Management or Treatment
Facility x (Waste or Sewage Management or Treatment Capacity Gap) + O&M
Cost Factor x Marginal Average O&M Cost x (Waste or Sewage Management or
Treatment Capacity Gap) x No. of Days for which facility was not available +
Environmental Externality |
Environmental externality for
untreated/partially treated sewage discharge:
|
Sewage Treatment Capacity Gap (MLD) |
Marginal Cost of Environmental Externality (Rs.
per MLD/day) |
Minimum and Maximum value of Environmental
Externality recommended by the Committee (Lacs Rs. Per Day) |
|
Upto 200 |
75 |
Min 0.05 max 0.10 |
|
201-500 |
85 |
Min. 0.25 max 0.35 |
|
501 and above |
90 |
Min. 0.60 max 0.80 |
Environmental externality for
improper municipal solid waste management:
|
Municipal Solid Waste Management Capacity Gap
(TPD) |
Marginal Cost of Environmental Externality (Rs.
per ton per day) |
Minimum and Maximum value of Environmental
Externality recommended by the Committee (Lacs Rs. Per Day) |
|
Upto 200 |
15 |
Min. 0.01, Max. 0.05 |
|
201-500 |
30 |
Min. 0.10, Max. 0.15 |
|
501-1000 |
35 |
Min. 0.25, Max. 0.35 |
|
1001-2000 |
40 |
Min. 0.50, Max. 0.60 |
|
Above 2000 |
- |
Max. 0.80 |
Minimum and Maximum EC to be
levied for untreated/partially treated sewage discharge
|
Class of the City/Town |
Mega-City |
Million-plus City |
Class-I City/Town and others |
|
Minimum and Maximum values of EC (Total Capital
Cost Component) recommended by the Committee (Lacs Rs.) |
Min. 2000 Max. 20000 |
Min. 1000 Max. 10000 |
Min. 100 Max. 1000 |
|
Minimum and Maximum values of EC (O&M Cost
Component) recommended by the Committee (Lacs Rs./day) |
Min. 2 Max. 20 |
Min. 1 Max. 10 |
Min. 0.5 Max. 5 |
Minimum and Maximum EC to be
levied for improper municipal solid waste management
|
Class of the City/Town |
Mega-City |
Million-plus City |
Class-I City/Town and others |
|
Minimum and Maximum values of EC (Total Capital
Cost Component) recommended by the Committee (Lacs Rs.) |
Min. 1000 Max. 10000 |
Min. 500 Max. 5000 |
Min. 100 Max. 1000 |
|
Minimum and Maximum values of EC (O&M Cost
Component) recommended by the Committee (Lacs Rs./day) |
Min. 1.0 Max. 10.0 |
Min. 0.5 Max. 5.0 |
Min. 0.1 Max. 1.0 |
Environment Compensation to be
Levied on Concerned Individual/Authority for Improper Solid Waste Management:
|
EC = Capital Cost Factor x Marginal Average
Cost for Waste Management x (Per day waste generation-Per day waste disposed
as per the Rules) + O&M Cost Factor x Marginal Average O&M Cost x
(Per day waste generation-Per day waste disposed as per the Rules) x Number
of days violation took place + Environmental Externality x N |
Where; Waste Quantity in tons per
day (TPD) N= Number of days from the date of direction of CPCB/SPCB/PCC till
the required capacity systems are provided by the concerned authority
Environmental Compensation in
Case of Illegal Extraction of Ground Water
|
ECGW = Water Consumption per Day x No. of Days
x Environmental Compensation Rate for illegal extraction of ground water
(ECRGW) |
ECRGW for Industrial Units:
|
Sl.
No. |
Area
Category |
Water
Consumption (m3 /day) |
|||
|
˂200 |
200
to ˂1000 |
1000
to ˂5000 |
5000
& above |
||
|
Environmental
Compensation Rate (ECRGW) in Rs./m3 |
|||||
|
1 |
Safe |
20 |
30 |
40 |
50 |
|
2 |
Semi
critical |
40 |
60 |
80 |
100 |
|
3 |
Critical |
60 |
80 |
110 |
150 |
|
4 |
Overexploited |
80 |
120 |
160 |
200 |
|
5 |
Minimum
ECGW=Rs 1,00,000/- |
||||
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