No compensation paid from Environment Relief Fund since 2019: Govt

No compensation has been paid since 2019 from the Environment Relief Fund established in 2008 to aid individuals affected by hazardous substances, the government has said. As of March 31, 2023, the fund has accumulated Rs 1,062 crore, Union Minister of State for Environment Ashiwini Kumar Choubey told the Rajya Sabha on Thursday.

"No amount has been disbursed as compensation from the Environment Relief Fund (ERF) since 2019," he said.

Instituted under the Public Liability Act, 1991 (PLIA) in the wake of the Bhopal Gas Tragedy, the ERF's primary purpose is to offer immediate relief to victims of accidents involving hazardous substances.


The PLIA mandates industries handling hazardous materials to mandatorily obtain public liability insurance.

Apart from contributions from hazardous industries that opt for insurance under the PLIA, the ERF consists of compensation awarded by the National Green Tribunal (NGT) for damage to the environment under Section 24 of the NGT Act, 2010.

Choubey shared with the Upper House that applications for compensation from the ERF are submitted to the respective collector.

The collector subsequently issues an order directing the fund manager, United India Insurance Company Limited, to transfer funds from the ERF to the collector's account. The collector then disburses the amount to the claimant.

The minister added that the NGT has also not issued any specific directions for awarding compensation out of the ERF.