While welcoming the new year 2025, it is worth to have an overview of the proposed environmental legislation in India for 2024, outlining key changes proposed by the Ministry of Environment, Forest and Climate Change (MoEFCC). Subsequent paragraphs delve into the details of the proposed amendments and their potential impact on the environment and sustainability in India. These proposed changes are designed to address a wide range of environmental challenges facing the country, including pollution, climate change, and deforestation. The MoEFCC aims to strengthen existing laws, introduce new regulations, and streamline processes to foster sustainable development and environmental protection.
Liquid Waste Management Rules, 2024:
(DRAFT)1
(S.O. 4341(E)dated 7th Oct 2024)
The rules cover the management of liquid waste from various
sources, including households, industries, public institutions, and
private establishments. It aims to ensure that all liquid waste is
treated and managed in an environmentally sound manner.
"Polluter Pays Framework" principle makes the generators
of liquid waste financially responsible for the costs associated
with its collection, treatment, and disposal.
Bulk consumers under the Draft Liquid Waste Management Rules, 2024 are defined as entities that have an average daily water usage exceeding 5,000 litres. This includes:
- Central or State government departments and undertakings
- Local bodies
- Public sector entities
- Private companies
- Hospitals and nursing homes
- Educational institutions (schools, colleges, universities, and hostels)
- Hotels
- Markets
- Places of worship
- Stadia and sports complexes
- Other private or public commercial, institutional, or residential entities
Bulk users are required to treat and reuse their wastewater, starting with 20% for the fiscal year 2027-28, and increasing to 50% by 2030-312. Reuse of treated wastewater in various applications, such as irrigation, industrial processes, and toilet flushing. They must comply with set targets for the percentage of wastewater treated and reused as part of Extended User Responsibility (EUR). Entities unable to establish on-site treatment facilities can purchase EUR certificates from registered wastewater treatment facilities. Operators of treatment facilities must report detailed data on treatment volumes, sludge management, and reuse outcomes to the SPCBs. Reports must be submitted monthly and uploaded to a centralized online portal to ensure transparency and compliance. Local authorities have the authority to levy user fees on liquid waste generators to recover the costs
of providing waste management services. Bulk users may establish on-sit decentralized wastewater treatment facilities if centralized treatment is not feasible. These facilities must meet the prescribed standards for effluent quality and reuse.
Proposed centralized reporting and compliance mechanisms ensure transparency and accountability in waste management practices. These provisions aim to create a robust framework for the sustainable management of liquid waste, ensuring environmental protection and public health. Central Pollution Control Board (CPCB) will establish an online system for the registration as well as for filing annual returns, etc of all obligated entities under these rules within six months of commencement of these rules. The system to ensure a mechanism wherein the volume balance of wastewater as per Extended User Responsibility (EUR) obligations of bulk users as well as non-obligated entities is reflected3. It will reflect the details regarding the audit of the obligated entities involved in collection, treatment of wastewater and/or sludge/faecal sludge and reuse/utilisation of treated wastewater and/or treated sludge/faecal sludge.
The environment compensation will be levied by SPCB on bulk users operating with respect to non-fulfilment of their Extended User Responsibility targets, responsibilities and obligations set out under these rules. Violators will be subject to action under Sections 15, 15A, 15B, 15C, 15D, 15E and 15F of the Environment (Protection) Act, 19864. Penalty for contravention by companies for each such contravention shall not be less than one lakh rupees but which may extend to fifteen lakh rupees. And where any company continues contravention additional penalty of one lakh rupees for every day during which such contravention continues.
End-of-Life Vehicles (Management) Rules, 2024:
DRAFT
(S.O. 367(E) dated 30-01-2024).5
The Vehicle Scrapping Policy, MoRTH has issued GSR 720 (E) dated 5th October 2021 to provide concession in the Motor Vehicle Tax of up to 25% in case of non-transport vehicles and up to 15% in case of transport vehicles which are purchased against the 'Certificate of Deposit'. GSR 714(E) dated 04.10.2021 provides that in case the vehicle is registered against submission of 'Certificate of Deposit', the fee for issue of certificate of registration shall not be levied.
The Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 issued vide GSR 653(E) dated 23.09.2021 (as amended from time to time) provides the rules to establish Registered Vehicle Scrapping Facilities (RVSFs). CPCB has published the Guidelines for environmentally sound facilities for handling and scrapping of End-of-Life vehicles in March 2023.
The Draft End-of-Life Vehicles Rules, 2024 issued by the Ministry of Environment, Forest, and Climate Change (MoEFCC) aim to establish regulations for Extended Producer Responsibility (EPR) concerning End-of-Life Vehicles (ELVs). These rules aim to promote sustainable and environmentally friendly practices within the automotive sector.
Producers (including importers) of vehicles are responsible for scrapping ELVs at registered vehicle scrapping facilities (RVSFs). Producers must meet recycling targets and purchase Extended Producer Responsibility certificates. The rules emphasize environmentally sound management practices forELVs, involving depollution, dismantling, and recycling/refurbishing. The rules define responsibilities for producers, registered owners, bulk consumers, collection centres, automated testing stations, and registered vehicle scrapping facilities.
Extended Producer Responsibility for Scrap of
Non-Ferrous metals (DRAFT)
GSR 499(E) dated 14-08-2024)6
The Ministry of Environment, Forest and Climate Change (MoEFCC) issued theHazardous and Other Wastes (Management and Transboundary Movement) Second Amendment Rules, 2024on August 14, 2024. These rules introduce Extended Producer Responsibility (EPR) for the scrap of non-ferrous metals. Non-ferrous metals mean Aluminium or Copper or Zinc or their alloys for the purposes of these rules. They shall come into force on the 1st Day of April 2025. Here are the key provisions:
Producers, manufacturers, collection agents, refurbishers, and recyclers of non-ferrous metals must register with the Central Pollution Control Board (CPCB). ''Non-ferrous metals'' means Aluminium or Copper or Zinc or their alloys for the purposes of these rules. "Producer" means any person or entity, irrespective of the selling technique used such as dealer, retailer, e-retailer, who, –
- Manufactures and offers to sell products made up of non-ferrous metals and their components or consumables or parts or spares under its own brand, using non-ferrous metals or their alloys; or
- Offers to sell under its brand assembled products made up of non-ferrous metals and their components or consumables or parts or spares produced by other manufacturers or suppliers, using non-ferrous metals or their alloys; or
- Offers to sell imported products made up of non-ferrous metals and their components or consumables or parts or spares under their own brand or original brand, using non-ferrous metals or their alloys; or
- Who imports used devices or products or scrap of non-ferrous metals.
The CPCB will generate EPR certificates for registered recyclers, acknowledging their contribution to recycling efforts. These certificates are valid for two years. Products made of non-ferrous metals can be refurbished, and refurbishers must also register with the CPCB. Bulk consumers of non-ferrous metals must set up collection points and ensure that scrap is handed over only to registered entities.
The CPCB will establish an online system for registration, filing of quarterly and annual returns, EPR certificates, and tracing of non-ferrous metal scrap.
Extended Producer Responsibility for Construction and
Demolition Waste (DRAFT)
(G.S.R. 458(E) dated 31-07-2024)7
The Draft Construction and Demolition Waste Management Rules, 2024 issued on July 31 vide, 2024 G.S.R. 458(E) apply to all activities related to construction, demolition, remodelling, renovation, and repair of any structure. They shall come into force with effect from 01st April 2025.
Construction and Demolition (C&D) waste includes materials generated from construction, demolition, remodelling, repair, and maintenance activities. This encompasses soil, sand, gravel, bricks, masonry, concrete, metal, wood, plastic, and more.
Producers (waste generators) of building projects with a built-up area of 20,000 square meters or more are responsible for managing C&D waste. They must register on the CPCB portal and submit a waste management plan for Extended Producer Responsibility (EPR). Producers must meet recycling targets as outlined in Schedule-I of the rules. For example, 50% of waste must be recycled in FY 2025-26, increasing to 100% from FY 2026-27 onwards.
The CPCB will develop an online system for registration, waste utilization frameworks, monitoring, enforcement, and data repository for C&D waste. Producers must submit data on waste management every six months and inform the state pollution control board in case of accidents during waste handling. Environmental compensation and penalties are in similar lines with other EPR provisions.
The Public Liability Insurance (Amendment) Rules, 2024
(DRAFT)
(SO2872(E) dated 19 July24)
8
These amendments aim to streamline the process for claiming relief and ensure that environmental damages are addressed even when the responsible party is not immediately identifiable. Here are the key changes and their impact on insurance policy requirements for industries:
The definition of "property" has been expanded to include both public and private properties. This means that industries must now cover a broader range of potential damages. Industries will need to ensure that their insurance policies cover a wider range of damages, including both public and private property.
Extent of Liability is modified and for single accident, maximum aggregate liability of the insurer to pay relief may change from Rs.5 Cr to Rs.250 Cr. and more than one accident, increase is from Rs.15 Cr to Rs.500 Cr.
A new clause has been added to allow the Central Pollution Control Board (CPCB) or State Pollution Control Board (SPCB) to apply for funds from the Environmental Relief Fund for assessment and remediation of environmental damage when the responsible party is not identifiable. With the expanded scope and stricter compliance requirements, insurance premiums may increase for industries to cover the additional risks.
The process for applying for relief has been streamlined, with a specific form (Form I) for claims related to property damage. Industrial units are now required to inform affected individuals of their right to claim relief in the event of an accident involving hazardous substances. Penalties for non-compliance with the rules have been updated, and there are stricter requirements for maintaining insurance policies.
The proposed environmental legislations (issued as draft in 2024) represents a significant step forward in India's commitment to environmental protection and sustainable development. These changes are crucial for safeguarding the environment, promoting sustainable economic growth, and ensuring the well-being of current and future generations. The government calls upon all stakeholders, including industry, government agencies, civil society organizations, and individuals, to actively participate in the implementation of these proposed changes. The success of the legislation will depend on the collective effort of all stakeholders to ensure its effective implementation and contribute to a more sustainable and environmentally responsible India. However, Indian corporates will be having following impacts (positive/negative) in the following areas:
Increased Costs:
Industries may need to invest in new treatment infrastructure or upgrade existing facilities to meet the new compliance requirements. This may include advanced treatment technologies to meet reuse standards. Regular maintenance and operational costs may rise to keep the treatment systems functioning effectively. This includes costs for chemicals, energy, labour, and replacement parts.
Compliance and Reporting:
Industries need to strengthen data management systems to track and report on various KPIs such as liquid volumes, sludge management, and reuse outcomes. This may involve additional software or hiring personnel specialized in environmental compliance. Frequent internal and external audits may be required to ensure compliance with the new regulations. Industries will need to prepare for these audits by maintaining accurate records and documentation.
Extended User Responsibility (EUR) / Extended Producers Responsibility (EPR):
Industries that cannot treat their wastewater/ waste will need to purchase EUR/EPR certificates. This could introduce new financial liabilities and necessitate ongoing coordination with registered treatment facilities.
Public Awareness and Acceptance:
Industries will need to develop effective communication strategies to promote the use of treated wastewater. This involves educating employees, customers, and the public about the safety and benefits of using recycled water.
Environmental Benefits:
- Reduction in Pollution:
Effective treatment and management of liquid / waste will lead to a significant reduction in pollution levels, contributing to cleaner water bodies and a healthier ecosystem. By reusing treated wastewater/ waste, industries can significantly reduce their freshwater consumption/ input material, easing the pressure on natural water resources. - Economic Opportunities:
The need for advanced wastewater/ waste treatment solutions or management of circularity waste will drive innovation and the development of new technologies. This can create new business opportunities for companies specializing in environmental technologies and services. - Green Credentials: Industries that comply with these regulations can enhance their environmental credentials, potentially attracting eco-conscious customers and investors.
Way forward for the Indian Corporates/ Industries if briefly summarised below. Legasis Private Limited will be eager to associate as a business partner with the corporate in this journey.
- Conduct a Compliance Assessment:
Evaluate current related management practices and identify gaps in compliance with the new rules. These gasps will facilitate to develop a comprehensive action plan to address these gaps. - Invest in Technology:
Explore advanced wastewater treatment technologies that meet the new standards. Consider partnerships with technology providers and consultants to implement these solutions. - Training and Capacity Building:
Train employees on the new compliance requirements and best practices in wastewater management. Build capacity within the organization to manage and operate new facilities/systems. - Public Engagement:
Develop outreach programs to educate and engage with the public about the benefits of using treated wastewater and waste utilization. Foster transparency and build trust with the community and stakeholders.
By taking these steps, industries can, not only comply with the new regulations but also turn the challenges into opportunities for growth and sustainability.
Originally published January 2025.
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