MPCB Grants BG & Penalty Exemption to Key Govt Units

The Maharashtra Pollution Control Board (MPCB) has issued a significant circular on April 28, 2025, exempting Defence Industries, Defence Projects & Hospitals, Atomic Energy units, Nuclear Power Energy units, and BARC Hospitalsfully owned and operated by the Government of India—from the requirement to submit Bank Guarantees (BGs) and the applicable 12% interest penalty, with retrospective effect.

🔍 Key Highlights:

🏛️ Reference: 184th Board Meeting held on March 10, 2025

🛑 Relief Provided:

  • Exemption from Bank Guarantee submission

  • Waiver of 12% interest penalty for delayed BGs

🧾 Applicable To:

  • Defence Industries & Projects

  • Central Govt Defence Hospitals

  • Atomic & Nuclear Energy Units

  • BARC Hospitals (Govt-owned and operated)

⚖️ Legal Context:

  • Combined consents under the Water Act (1974), Air Act (1981), and Hazardous Waste Rules (2016)

📜 Background:

  • The Board, in its 182nd meeting (Feb 12, 2024), introduced a 12% interest penalty for delayed BGs

  • Central Government entities cited procedural challenges in complying due to the Central Govt Guarantee Policy, 2022

  • Requests were made to MPCB for exemptions, citing national importance and bureaucratic hurdles

🛡️ Rationale Behind the Decision:

The MPCB acknowledged the strategic importance and national security role of these institutions. The exemption is a response to their procedural difficulties and aligns with the Government of India’s Guarantee Policy, which complicates the issuance of BGs by such entities.

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