State to hike bank guarantee and fine on polluting industries

A committee has been formed to submit a report detailing the new bank guarantee structure and the revised fine to be levied by the Environment Department, officials said. The committee will submit the draft report in three months

Mumbai: Polluting industries in the state will likely have to pay higher bank guarantees and fines, as the state environment department plans stricter norms to increase the responsibility of such entities.

State to hike bank guarantee and fine on polluting industries

A committee has been formed to submit a report detailing the new bank guarantee structure and the revised fine to be levied by the Environment Department, officials said. The committee will submit the draft report in three months.

Officials said the revised policy is also proposing to introduce higher charges for industries operating in more polluted regions. “We are planning to apply more rate in those areas where pollution is more. Like in Chandrapur there is more air pollution, so there would be additional rates,” an official said.

The department is also planning to introduce an online system for the collection and monitoring of bank guarantees and penalties to reduce human intervention and improve transparency.

The decision was taken at a meeting held last week under environment minister Pankaja Munde, attended by senior officials including environment secretary Jayashree Bhoj and representatives of the Maharashtra Pollution Control Board.

Officials pointed out that the current policy, under which industries are required to submit a bank guarantee equivalent to 10% of their investment in pollution control systems, has remained the same since 2013. The proposed revision seeks to strengthen enforcement and ensure stricter adherence to environmental norms.

The move comes after a Supreme Court order in August 2025 allowing pollution control boards to impose environmental compensation and demand bank guarantees from polluting entities.

Munde has asked officials to study central guidelines and policies in other states before submitting recommendations.

“The objective behind revising the policy is to ensure that industries place more emphasis on pollution control measures. At the same time, the policy should remain industry-friendly so that businesses do not face unnecessary difficulties,” she said.