The Maharashtra Pollution Control Board (MPCB) has issued a circular restructuring the Bank Guarantee (BG) regime applicable to Urban Local Bodies (ULBs), CIDCO, and Cantonment Boards in relation to the Consent issued for Sewage Treatment Plants (STPs). The decision was taken during the 184th Board meeting held on March 10, 2025, and aims to improve compliance by simplifying the BG structure.
Previously, ULBs and Corporations were required to furnish multiple bank guarantees under different categories such as sewer pipeline networks, STP capacity utilization, solid waste disposal, O&M, online flow meters, and more. The total bank guarantee burden often exceeded ₹75 lakhs, making compliance difficult for many local bodies.
Key Highlights of the New Circular:
- A single consolidated Bank Guarantee amount will now be imposed instead of segmented BGs.
- The new structure is simplified and based on classification of Municipal Corporations and Councils.
- Applies retrospectively, including all pending consent applications.
Revised Bank Guarantee Structure:
| ULB/Body Type | Classification | Revised BG Amount (₹ Lakhs) |
| Municipal Corporation | Class A | 15.00 |
| Municipal Corporation | Class B | 10.00 |
| Municipal Corporation | Class C | 07.00 |
| Municipal Corporation | Class D | 05.00 |
| CIDCO Corporation | – | 05.00 |
| Municipal Council | Class A | 03.00 |
| Municipal Council | Class B | 02.00 |
| Municipal Council | Class C | 01.00 |
| Cantonment Boards | – | 01.00 |
This streamlined approach is expected to enhance ease of doing compliance, reduce administrative delays, and encourage better environmental responsibility from ULBs and related entities.
