environmental safeguards
SUBMITTED BY: -
Mayank Datta
A3208307023
AMITY LAW SCHOOL,
AMITY UNIVERSITY, UP
ACKNOWLEDGEMENT
I am very grateful to my teacher, Prof. Alok Verma for his able guidance
and support in the compilation of this project. His advice and guidance has
been of great invaluability and importance.
The present work is up to the mark and worthy of consideration for the
award of B.A.L.L.B degree. This being submitted to the Amity University
for the degree of Bachelor of Laws in the partial fulfillment of requirement
for the degree.
Table of Contents
1. Title page
2. Certificate
3. Acknowledgement
4. Introduction
5. Involvement in Environment Protection
6. Industrial Finance Corporation
7. International Environment Management Standards
8. Small Scale Industries
9. Conclusion
10. Bibliography
Introduction
environment. Since then the rain forests have been decimated, oil spilled by
the tankers, harmful gases spewed into the atmosphere, poisonous fluids into
Industry has always been and continues to be the prime cause of economic
development all over the world. The need of the hour is to bring awareness
and waste utilisation in the industry. For example the single most important
encouraged and monitored for conserving energy and using less energy
intensive technologies.
who are main source of funds for industry assume high importance.
(a) India's efforts to make the country cleaner and greener were marked by
vehicular and noise pollution. The banks will have to assist the Government
Globe in view of their continuing support to social causes in the past too.
industry.
(c) The success of the local pollution control equipment industry depends
heavily on the increased demand for its products and financial assistance
(d) The existing borrowers of the banks may in future be faced with the new
environmental audits, etc. may become mandatory in future for the banks
and they will have to fall in line with the approach adopted by International
(f) The projects now require EIA and EA as necessary prerequisites for the
(UNEP) and Salomon-Inc. of New York has shown that the number of
philanthropy but rather good, solid business. In this scenario, banks require
IFC's Environment Unit (EU) was established in 1991. EU is the focal point
major hazard analysis, etc. At the time of Initial Project Review (IPR), the
projects are classified into three broad categories on basis of their impact on
analysed in the very beginning and the same is shared with the local affected
IFC disburses funds only after plans are in place in accordance with the
World Bank and host country requirements on the environmental issues. The
action.
specific standards and some pollutants specific standards, but they do not
Import Bank (EXIM Bank), which has released its environmental review
compliance programs.
regulations for all countries. Under ISO 14000 series, a company is required
The procedure of lending process for the banks, broadly will involve :-
major hazards, pollution control efforts, etc. However, the company will be
existing large loan portfolio for safeguarding banks' interest from potential
report of site visit will be analysed. Site inspection report should include
review of past and present use of site, the nature of the neighbourhood, the
* pesticide/insecticides
* Refineries
* Fertilizers
* Paints
* Dyes
* Leather tanning
* Rayon
* Sodium/Potassium Cyanide
* Basic drugs
* Acids/alkalies
* Plastics
* Rubber - synthetic
* Cement
* Asbestos
* Fermentation industry
* Electroplating industry
The nature of industry, site, process and magnitude of loan shall decide the
and cash/fund flow. The cost effect on the project in case of dealing with
gathered by on site inspection and EA. Every bank should incorporate the
and EIA of the project, pricing for environmental compliance in their regular
credit training programmes. Further, on lines of IFC's Environmental Units
offices. EC will become the focal point for environment related activity and
will provide the required expertise whenever needed. Credit officers will
issues in working of the credit requirement of the borrowers. They will have
(i) Documents
(a) "Loan covenants" can be included that the borrower will comply with all
central, state and local environment laws; remedy any present or future
contamination; immediately notify the bank if they receive any notice of
damages resulting from hazardous waste clean up; damages due to storage,
disposal of materials; cost and expenses resulting from the repairs, etc.
(d) "Undertaking" from the borrowers that all conditions relating to any
(ii) Collateral
The borrower may be asked for additional collateral security against future
(iii) Costing
All this is going to increase the cost for the bank. The credit rating exercise,
which decides the interest rates, can incorporate environmental aspect with
provision of negative marks based on the risk assessment. This may slightly
downgrade the rating and thus, increase the interest earning for the bank.
risk factors, etc. The Reserve Bank of India inspections as well as in-house
corporate borrowers. The SSI sector is not in a position to bear the additional
expenses on account of environment audit, etc. However, the approach has
wastes, etc.
Conclusion
on the environment and society. Due to their effective say in the industrial
protection efforts.
Bibliography
The project has been compiled after gathering useful information from the
following sources:
1. legal-dictionary.thefreedictionary.com
2. www.worldbank.com
3. www.ecosystemmarketplace.com