Hyderabad: Relief money piling up as government officials are not aware of it

Hyderabad: A central fund for use in the event of industrial accidents has witnessed almost no spending. The Environment Relief Fund (ERF) scheme has been in existence since 2008 as part of the Public Liability Insurance Act, 1991. It makes it mandatory for companies falling under the ambit of the Act to deposit a sum of money equal to one premium of its insurance policy once with a fund manager, which is presently United India Insurance Company Limited (UIICL). The amount can be accessed by a District Collector if there is some industrial accident.

Since the fund was established, there has apparently been almost no spending from it apart from the 1 per cent paid as service fee to UIICL annually. The funds have accumulated to the tune of Rs 568.49 crore.

In 2008, it had Rs 285 crore deposited. Deposits annually range between Rs 8 crore and Rs 10 crore from across the country apart from the interest that gets added annually.

There is lack of knowledge about ERF among officials responsible for overseeing the fund in Telangana. When contacted, Telangana State Pollution Control Board, Hyderabad Collectorate senior officials and even the regional head of UIICL could not say how much money has been deposited in Telangana and if all the nearly 280 industries which fall under its ambit have deposited their share. Officials of Central Pollution Control Board in New Delhi also could not provide a figure on it.

This is in spite of the fact that CPCB was asked tfor directions to be issued to state PCBs last September to ensure all industries which fall under PLI Act get insurance policies and deposit the prescribed amount in the ERF.