Statement of Objects and Reasons.-The Water (Prevention and Control of Pollution) Act, 1974 has been enacted by Parliament under article 252 of the Constitution with a view to control the pollution of rivers and streams which has assumed considerable importance and urgency in recent years as a result of increasing industrialisation and urbanisation. The Act is intended to ensure that the domestic and industrial effluents are not allowed to be discharged into water courses without adequate treatment. This Act is now in force in fifteen States and in all Union territories. The other remaining States are also likely to adopt the Act in the near future.

2. According to the provisions of the Act, the Central Government and the State Governments have to provide funds to the Central Board and the State Boards for prevention and control of water pollution respectively, for implementing the provisions of the Act. However, due to pressure on the limited resources, the State Governments are not able to provide adequate funds to the State Boards for their effective functioning. It is, therefore, proposed to levy a cess on local authorities which are entrusted with the duty of supplying water under the law by or under which they are constituted and on certain specified industries. The cess proposed to be levied will be on the basis of the water consumed by such local authorities and industries. The cess will be collected by the State Governments concerned and will be paid to the Central Government and the Central Government, after due appropriation made by Parliament by law, will pay, having regard to the amount of cess collected by the concerned State Governments, such sums of money as it may think fit to the Central Board and the State Boards.

Amendment Act 53 of 1991-Statement of Objects and Reasons.-The Water (Prevention and Control of Pollution) Cess Act, 1977 was enacted by Parliament with a view to augmenting the resources of the Central and State Pollution Control Boards and for enabling them to take steps for the prevention and control of pollution of water. With the rapid expansion of industries and towns, the responsibility and workload of the Pollution Control Boards have increased considerably. The funds available with these Boards have not kept pace with the increase in costs and with the overall commitments involving heavy financial liabilities.

2. Cess is collected at such rate, not exceeding the rate specified in Schedule II annexed to the aforesaid Act, as the Central Government may specify. It has become necessary to increase the maximum rates of water cess and, therefore, it is proposed to increase the rates. The maximum rates of water cess are also sought to be specified in cases where any specified industry or local authority liable to pay cess fails to comply with any of the provisions of section 25 of the Water (Prevention and Control of Pollution) Act, 1974 or any of the standards laid down by the Central Government under the Environment (Protection) Act, 1986.

3. Rebate in cess allowed to any person or local authority is proposed to be reduced from 70 per cent. to 25 per cent. and it is also intended to provide that a person or local authority shall not be entitled to a rebate if water in excess of the prescribed quantity is consumed, or the provisions of section 25 of the Water (Prevention and Control of Pollution) Act, 1974 or the standards laid down by the Central Government under the Environment (Protection) Act, 1986, are not complied with.

4. It is also proposed to empower the officers and the authorities collecting cess to make assessment of the amount of cess where no return is filed. The rates of interest for delay in payment of cess is also sought to be increased.

[7th December, 1977]

An Act to provide for the levy and collection of a cess on water consumed by persons carrying on certain industries and by local authorities, with a view to augment the resources of the Central Board and the State Boards for the prevention and control of water pollution constituted under the Water (Prevention and Control of Pollution) Act, 1974.

Be it enacted by Parliament in the Twenty-eighth Year of the Republic of India as follows:-

Brought into force on 1.4.1978.