The Keralam government has requested the National Green Tribunal (NGT) to execute various environmental restoration, sewage and solid waste management projects through its existing decentralised plan for local self-government institutions instead of creating a separate, ring-fenced account for it.
The Principal Bench of the tribunal in New Delhi had earlier asked the authorities to set up a single, centralised ring-fenced account at the State level to deposit the funds earmarked as ‘environmental compensation’ for improper waste management. It had objected to the inclusion of funds received under various schemes, including the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme, into the ring-fenced account.
A report submitted by the Department of Local Self Government (LSGD) to the tribunal said that “creating an exclusive ring-fenced account to deposit hundreds of crores in environmental compensation is administratively daunting and contrary to the model of democratic decentralisation practised in the State”.
‘Administrative bottlenecks’
In Keralam, waste generation, collection, and treatment operations are executed by around 1,200 Local Self-Government Institutions (LSGIs). Centralising these funds in a single escrow account creates administrative bottlenecks, delays field-level disbursements, and stifles the operational capability of local bodies executing environmental projects on he ground, it said.
Officials of the LSGD said Keralam currently devolves nearly 28.5% of its State Plan outlay directly to LSGIs as Plan funds. The funds earmarked for environmental protection are transferred directly to local body accounts to ensure immediate operational autonomy for waste treatment and infrastructure upkeep, they said.
The local bodies formulated individual environmental and waste management schemes directly on the ‘Sulekha’ electronic plan monitoring and project management portal designed specifically for plan formulation, vetting and approval, they said.
The government has requested the tribunal to accept the total amount of ₹4,068.2 crore currently earmarked under various dedicated budgetary allocation by the State and other schemes for liquid waste management as meeting the requirement of ring-fencing recommended by the Principal Bench.
Officials of the Kerala State Pollution Control Board said the government has assured the tribunal that the funds earmarked for liquid waste management will remain exclusively for addressing the gaps and building the required infrastructure, including sewage treatment plants, to ensure waste management as per the norms.
Published – October 05, 2026 12:52 pm IST
