A BRIEF OUTLINE OF THE PROPOSED BIOLOGICAL DIVERSITY ACT

Ministry of Environment and Forests

Government of India

October 1998

(Although discussed and agreed upon on 26 October, yet to be officially released)

The additions to earlier version are printed in bold and italics.


1. PREAMBLE

Whereas India is rich in biological diversity and traditional knowledge system, and hence has to take steps towards its conservation and sustainable utilisation;

And Whereas India is party to the United Nations Convention on Biological Diversity signed at Rio de Janeiro on the 5th day of June 1992;

And Whereas the said Convention came into force on 29th December 1993;

And Whereas the said Convention reaffirms the sovereign rights of the States over their biological resources;

And Whereas the said Convention has the main objective of conservation of biological diversity, sustainable use of its components and fair and equitable sharing of the benefits arising out of utilization of genetic resources;

And Whereas it is considered necessary to give effect to the said Convention.

2. TITLE

The title of the Act shall be Biological Diversity Act, 1998.

An Act to provide for conservation of biological diversity, the sustainable use of its components and the equitable sharing of benefits arising out of the use of biological resources.

3. DEFINITIONS

"Equitable Benefit Sharing" means the sharing of benefits mutually agreed upon the National Authority, where relevant, local bodies, individuals and the applicant for the accessed biological resources, their byproducts, knowledge, innovations and practices with their use and application.

(i) "Biological Diversity" means the variability among living organisms from all sources including, inter alia, terrestrial, marine and other aquatic ecosystems and the ecological complexes of which they are part; this includes diversity within species, between species and of ecosystems.

(ii) "Biological Resources" means plants, animals and micro-organisms, or parts thereof, and their genetic material and byproducts, with actual or potential use or value, but does not include human genetic material.

(iii) "Bioprospecting" means survey or/ and collection of species, sub-species, genes, compounds and extracts of biological resource for any purpose and includes characterization, inventorisation and bioassay.

(iv) "By-product" means a compound, molecule or any extract of a living or dead organism resulting from any metabolic process.

(v) "Convention on Biological Diversity" means the international treaty related to conservation and sustainable use of biological diversity signed during the United Nations Conference on Environment and Development held in Rio de Janeiro in Brazil in June 1992 and which came into force with effect from 29th December 1993.

(vi) "Ex-situ Conservation" means the conservation of components of biological diversity outside their natural habitats.

(vii) "Genetic Material" means any material of plant, animal, microbial or other origin containing functional units of heredity including genetic material contained in soil and sediment.

"Heritage sites" means areas important from the standpoint of biological diversity notified under the present Act by the State Government.

(viii) "in-situ Conservation" means the conservation of ecosystems and natural habitats and the maintenance and recovery of viable populations of - species in their natural surroundings and, in the case of domesticated or cultivated species, in the surroundings where they have developed their distinctive properties.

(ix) "National Authority" means the National Biodiversity Authority established under this Act.

"Prior Informed Consent (PIC)" means the consent of the National Authority for granting access to biological resources and/or knowledge related thereto, based on the information provided by the applicant, disclosing fully the intent of the access, before access is granted.

(X) "Research" means study or systematic investigation of any biological resource or technological application that uses biological systems, living organisms or derivatives thereof, to make or modify products or processes for any use.

(xi) "Rules" means the rules framed under the Act.

(xii) "State Biodiversity Board" means the State Biodiversity Board established under this Act.

(xiii) "Sustainable Use" means the use of components of biological diversity in a way and at a rate that does not lead to the long-term decline of biological diversity, thereby maintaining its potential to meet the needs and aspirations of present and future generations.

(xiv) "Threatened Species" means species that are in immediate danger of extinction or likely to become extinct or at the risk of becoming extinct in the near future as notified by the Central Government from time to time.

(xv) "Voucher Specimen" means a reference sample.

4. THE NATIONAL BIODIVERSITY AUTHORITY

A National Biodiversity Authority shall be established by the Central Government with head quarters at Delhi. The Authority may be composed of a Chairperson who shall be an eminent person to be appointed by the Central Government; five ex-officio members who shall represent Ministries/ Departments of the Central Government of whom one each shall be from the Ministry of Environment and Forests, Department of Agricultural Research and Education, Department of Biotechnology and Department of Ocean Development; five non-official members to be appointed from amongst specialist, scientists conversant with matters relating to conservation of biological diversity, sustainable use of biological resources and equitable sharing of benefits arising out of the use of biological resources; conserves of biological resources, creators and holders of knowledge and information relating to the use of biological resources, with due regards to gender representation;

(ii) Central Government may remove from office, the Chairperson or any member, who

(a) has been adjudged as insolvent; or

(b) has been convicted of an offence which, in the opinion of the Central Government involves moral turpitude; or

(c) has become physically or mentally incapable of acting as a member; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interests.

(iii) The terms and conditions of service of the Chairperson and the members and their salaries and allowances shall be prescribed by Rules.

5. COMMITTEES OF THE NATIONAL AUTHORITY

The National Authority may appoint such committees as may be necessary for discharging its functions. These committees shall have representation from concerned Biodiversity Management Committee in local bodies. In addition to nominated members on these committees, members will be co-opted in accordance with the requirements of the work. The co-opted members will be active members of the committees except that they will not have any right to vote.

6. OFFICERS AND EMPLOYEES OF THE NATIONAL AUTHORITY

Subject to the previous approval of the Central Government the National Authority may appoint

such number of officers and employees as may be necessary. The terms and conditions and other conditions of service shall be prescribed by the Rules.

7. CERTAIN EXPENSES TO BE MET FROM THE CONSOLIDATED FUND OF INDIA

The salaries and allowances of the Chairperson, members and other officers and employees of

the National Authority and other administrative expenses of the National Authority shall be defrayed out of the Consolidated Fund of India.

8. FUNCTIONS OF THE NATIONAL AUTHORITY

The National Authority shall grant approvals for undertaking activities referred to in section 11 and frame guidelines for access and benefit sharing. Further it shall also advise the Central Government on:

(i) matters relating to the conservation of biological diversity, sustainable use of its components and equitable sharing of the benefits arising out the utilisation of biological resources;

(ii) the manner in which the National Biodiversity Fund may be utilised;

(iii) the heritage sites to be notified and also the measures for the management of such heritage sites,

(iv) implementation of the Act generally and such other functions as may be prescribed.

(v) Monitor and challenge, if necessary, intellectual property rights applications relating to biodiversity and knowledge of Indian origin.

9. STATE/UNION TERRITORY BIODIVERSITY BOARD

State Governments/ Union Territory Administrations may establish State Biodiversity Boards for the purpose of implementation of this Act. The terms of reference of constitution and composition of the Board may be notified by Rules.

10. BIODIVERSITY MANAGEMENT COMMITTEES IN LOCAL BODIES

Institutions of self government shall constitute biodiversity management committees in their respective areas with the purpose of promoting the conservation, sustainable use and documentation of biological diversity. This may include preservation of habitats, conservation of land races, folk varieties and cultivars, conservation of domesticated stocks and breeds of animals, and conservation of micro organisms. Chronicling of knowledge relating to the use of biological diversity will also be promoted by Biodiversity Management Committees. BMCs shall be consulted by the NBAI SBB for the use of resources and knowledge.

CONSERVATION AND SUSTAINABLE USE

The conservation and sustainable use of biological diversity shall be integrated as far as possible and as appropriate into relevant sectoral or cross sectoral plans, programmes and policies.

IMPACTASSESSMENTAND MINIMIZING ADVERSE IMPACTS

The central government shall notify through rules appropriate procedures required in prior impact assessment of its proposed projects that are likely to have significant adverse effect on biological diversity with a view to avoiding or minimizing such effects and where appropriate, allow for public participation in such procedures.

PROTECTION OF PEOPLES KNOWLEDGE

People's intellectual rights relating to their knowledge regarding biodiversity shall be protected through a sui generis system.

11. ACTIVITIES WITH PRIOR INFORMED CONSENT (PIC)

(i) Any person who is not a citizen of India, any body corporate, association or organisation which is not registered in India, or which is registered in India but has non-Indian citizen participation in equity or management is prohibited from obtaining any biological resources occurring in India and/or associated knowledge for research, commercial utilisation or bioprospecting without prior approval of the National Authority. This prohibition will also apply to a citizen of India who stays abroad either temporarily or permanently.

From ten years of the enactment of this legislation, the Indian industry, researchers and other citizens will also have to obtain prior approval of the national authority before accessing the resources and knowledge. However, till such time the Indian industry and researchers will keep the national authority informed of the accessions being made by them.

(ii) It is also proposed to prohibit transfer of any result of research with respect to any biological resource by any citizen of India or any body corporate, association, organisation registered in India, without the prior approval of the National Authority to the following:

(a) any person who is not a citizen of India.

(b) any person who is a citizen of India but is staying outside India temporarily or permanently.

(c) any body corporate, association or organisation which is not registered in lndia.

(d) any body corporate, association or organisation which is registered in India but has non-Indian citizen participation in capital or management.

Sharing of knowledge through seminars and publications will be exempted from the purview of this provision, provided such publications are in public domain and papers presented in such seminars are widely circulated and published in technical journals.

(iii) Collaborative research projects involving transfer/ exchange of biological resources and information relating to them between institutions, including government sponsored institutions of India and similarly placed institutions in other countries will be exempted from the provisions of subparagraphs (i) and (ii) above, provided such collaborative research projects have been drawn up subject to overall policy guidelines of the Central Government and have the approval of the Central Government.

(iv) Applications will be submitted to the National Authority for seeking approval in accordance with sub-paragraphs (i) and (ii) above in the prescribed form. The National Authority may make enquiries as deemed fit. Based on such enquiries and appraisal of the material placed before it, the National Authority shall communicate its approval or otherwise subject to such terms and conditions as it may deem fit, including the imposition of charges by way of royalty.

(v) Transferring the resources or knowledge acquired by any agency or individual through prior approval of the authority shall not be transferred directly to a third party the other party has to obtain a separate prior approval.

12. EQUITABLE BENEFIT SHARING

While granting approvals under Section 11, the National Authority shall ensure that the terms and conditions of approval secure equitable sharing of benefits arising out of the use of biological resources and knowledge relating to them. Such benefits may include transfer of technology, location of R & D, association of Indian scientists, local people with R & D and bioprospecting, location of production units, setting up of venture capital funds, direct monetary compensation and other non-monetary benefits, as may be appropriate for the entity from where it has been accessed. Direct monetary benefits shall be deposited in the National Biodiversity Fund except in cases were biological resource or knowledge is accessed from specific individual(s), or group of individuals, or organisations, in which case the money could be directly made over to such providers of resources in accordance with the terms of agreement, after sufficient public notice. The nature and combination of benefits will be determined in accordance with the merits of each case. The National Authority shall frame guidelines for the purpose.

13. PRIOR INTIMATION REGARDING COMMERCIAL APPLICATION

Any person intending to apply for any form of intellectual property right in or outside India for any invention based on any research or information on a biological resource occurring and accessed from India shall be required to obtain prior permission of the National Biodiversity Authority in the prescribed form. The National Authority may impose benefit sharing fee or royalty or conditions on the financial benefits arising out of the commercial utilisation of such rights.

14. NOTIFICATION OF BIOLOGICAL DIVERSITY HERITAGE SITES

Without prejudice to any other law for the time being in force and survival and livelihood of people, State Government may from time to time in consultation with institutions of self government notify areas of biodiversity importance as Biological Diversity Heritage Sites under the Act. The State Government in consultation with the Central Government may frame rules for the management of conservation of Heritage Sites.

15. POWER TO NOTIFY THREATENED SPECIES

Without prejudice to the provisions of any other law for the time being in force, the Central Government may from time to time notify threatened species and prohibit or regulate their collection for any purpose and take appropriate steps to rehabilitate and preserve such species.

16. REPOSITORIES FOR DIFFERENT CATEGORIES OF BIOLOGICAL RESOURCES

The Central Government in consultation with the National Biodiversity Authority may designate institutions and local bodies as repositories under the Act for different categories of biological resources. Repositories shall keep in safe custody the biological material in ex-situ conditions including voucher specimens deposited with them. Any new taxon discovered shall be notified to the repositories or any other institution designated for this purpose. All researchers must deposit voucher specimens of the new species being described.

17. NATIONAL BIODIVERSITY FUND

There shall be a National Biological Diversity Fund (NBF). NBF shall be composed of grants/ loans from the Central Government, fees, royalties, monetary benefits, cess as a result of approvals granted by the National Authority and any donations/ grants/ loans from other institutions for the purpose of this Act.

The fund shall be utilised inter-alia for the following purposes

(a) Channeling benefits to the conservers of biological resources, creators and holders of knowledge.

(b) Conservation of biological resources and conservation and development of biological resources in areas from where such resource, or knowledge has been accessed. Funds may also be utilised for socioeconomic development of such areas in consultation with the local self government concerned.

(c) Conservation of heritage sites declared under this Act.

(ii) The Fund shall be subject to audit of the Comptroller and Auditor General of India.

(iii) The Central Government shall frame Rules for the management and administration of the National Biodiversity Fund.

18. STATE BIODIVERSITY FUND

State Biodiversity Funds shall be created in States as in case of national fund. These funds will be composed of transfers from the National Biodiversity Fund and any other grants made to the fund by the State Government, Central Government, or any other institution or organisation. The management and utilisation of the fund shall be subject to the rules notified under the Act in this connection.

LOCAL BIODIVERSITY FUND

Local Biodiversity Fund shall be created in the local Biodiversity Management committees in the local bodies. This funds will be composed of transfers from the National Biodiversity Fund and other grants made to the Fund by the State Government, Central Government or any other institutions or organisation. These funds could also be contributed by the local body by levying charges on the biodiversity resources being traded from within its boundaries. The operation of the funds shall be specified by the rules.

19. ANNUAL REPORT

The National Authority shall furnish to the Central Government returns and statements in such form as may be prescribed; it shall also prepare a report giving the summary of its activities which shall be forwarded to the Central Government. A copy of the report shall be laid before the Parliament. Similarly a Report shall be submitted by the State Biodiversity Board to the State Government which shall be laid before the State Legislature.

21. APPEALS

Appeals from the decision of the National Biodiversity Authority shall lie to the High Court.

22. PENALTIES AND OFFENCES (BEING REVISED)

Any contraventions of the provisions of Act will be punishable with imprisonment for a term of which may extend upto 5 years or fine which may extend upto Rs. 10 lakhs or with both.

23. DIRECTIONS TO NATIONAL AUTHORITY AND STATE BIODIVERSITY BOARDS

The Central and the State Governments will have power to give directions to the National Authority and State Biodiversity Boards respectively.

24. POWER OF CENTRAL GOVERNMENT TO GIVE DIRECTIONS TO THE STATE GOVERNMENTS

The Central Government will have the power to give directions to the State Governments for carrying into effect the provisions of the Act.

25. POWER TO GRANT EXEMPTIONS

The Central Government in consultation with the National Authority, may notify items, areas for exclusion from the purview of the provisions of this Act, provided that such exclusion does not violate other provisions of this act.

DISPUTE RESOLUTION

The central government will notify the rules for establishing mechanisms to resolve the disputes in relation to the act.

26. POWER TO MAKE RULES (BEING MADE FLEXIBLE)

The Central Government may, by notification in Official Gazette, make rules for carrying out the purposes of this Act. Rules made under this Act, shall be laid before Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or both houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under the rule.

27. PROTECTION OF ACTION TAKEN IN GOOD FAITH

No suit, prosecution or legal proceeding shall lie against any officer or other employee of the Central Government for anything which is done in good faith in pursuance of this Act or the rules made thereunder.

28. COGNIZANCE OF OFFENCES

No court shall take cognizance of any offence under this Act except on a complaint made by: (a) the Central Government or any authority or officer authorised in this behalf by that Government; or (b) any person who has given notice of not less than sixty days, in the manner prescribed, of the alleged offence of his intention to make a complaint, to the Central Government or the authority authorised, as aforesaid.

29. MEMBERS, OFFICERS AND EMPLOYEES OF THE AUTHORITY CONSTITUTED UNDER SECTION 4 TO BE PUBLIC SERVANTS

All the members of the authorities constituted under Section 4 and all officers and employees of such authority when acting or purporting to act in pursuance of any provisions of this Act or the rules made thereunder shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code.

30. BAR OF JURISDICTION (BEING REVISED)

No civil court shall have jurisdiction to entertain any suit or proceeding in respect of anything done, action taken or order/ direction issued by the Central Government or the State Government or the authorities in pursuance of any power conferred by or in relation to its function under this Act.

31. POWER TO DELEGATE

Without prejudice to the provisions of Section 4, the Central Government may, by notification, in the official Gazette, delegate, subject to such conditions and limitations as may be specified in the notification, such of its powers and functions under this Act as it may deem necessary or expedient, to any officer, State Government or other authority.

32. Other general provisions for removal of difficulties in the implementation will be there.