Madhya Pradesh to widen biodiversity net

MP is the first Indian state to implement the Act and demand benefit sharing levy

In a bid to widen the net on imposing benefit sharing levy on corporate houses that use locally available bio-resources, the Madhya Pradesh state government is considering finer points of the State Biodiversity Act 2002.

Madhya Pradesh is the first Indian state to implement the Act and demand benefit sharing levy. Beneficiary firms using local bio-resources are levied minimum two per cent to maximum five per cent of their turnover. "We will look into finer points of the Act as some corporate houses have opposed the Act and thereby giving benefit sharing levy," a highly placed official said.

The State Biodiversity Board has already issues notices to various companies; soya processors, sugar mills, distilleries, herbal medicine manufacturers, enzyme and organism users.

According to provisions of the Act, it is mandatory for all companies that use bio-resource to inform the state biodiversity board or else face penal actions which may be imprisonment to an extent of three years.

However, a case is already pending in Central Zone of National Green Tribunal (NGT) Bhopal to define "Coal" under the Act.

The benefit sharing levy goes to local bio-diversity management committees. However, though, the state has 27000 such committees, it has hardly collected any fund from any corporate houses. Western Coalfields Limited and Southern Coalfields Limited have already been challenged by a Chhindwara based committee in the tribunal.

The NGT is likely to give orders in this regard in mid January.

"The Act must have been implemented years ago. It is a direct loss to the state and central government exchequers.

Although Ministry of Environment and Forests has defined that coal is not a bio-resource but they do not have right to define

it since provisions of the Act does not permit it after two years of its becoming effective," the source said.

Meanwhile, if things go smoothly, the state government may find the Act an alternate source of revenue for rural development.

It is likely to impose the act in stricter terms. According to government sources, "Only power companies that use coal as bio-resources can share minimum Rs 2000 crore followed by soyabean processors, distilleries and breweries.''