⚠️ Environmental Compensation Charges for Illegal Groundwater Extraction
Strict Warning by Central Ground Water Authority (CGWA)
Any commercial, industrial, mining, or infrastructure unit extracting groundwater without obtaining a valid No Objection Certificate (NOC) from the CGWA or respective State/UT Authority will be treated as illegal and subject to severe penalties, prosecution, and environmental compensation.
Such activities directly violate the provisions of the Environment (Protection) Act, 1986, and will attract monetary penalties, sealing of borewells, disconnection of electricity supply, and criminal action.
💧 Calculation of Environmental Compensation (ECGW)
- ECRGW is in ₹/m³, based on type of usage and groundwater category.
- Deterrence factor depends on the duration of illegal extraction.
💦 Environmental Compensation Rates (ECRGW) in ₹/m³
1 Packaged Drinking Water Units
| Area Category | Groundwater Withdrawal (m³/day) | |||
|---|---|---|---|---|
| <200 | 200–<1000 | 1000–<5000 | 5000 & above | |
| Safe | ₹12 | ₹18 | ₹24 | ₹30 |
| Semi-Critical | ₹24 | ₹36 | ₹48 | ₹60 |
| Critical | ₹36 | ₹48 | ₹66 | ₹90 |
| Over-Exploited | ₹48 | ₹72 | ₹96 | ₹120 |
2 Mining & Infrastructure Dewatering Projects
| Area Category | Groundwater Withdrawal (m³/day) | |||
|---|---|---|---|---|
| <200 | 200–<1000 | 1000–<5000 | 5000 & above | |
| Safe | ₹15 | ₹21 | ₹30 | ₹40 |
| Semi-Critical | ₹30 | ₹45 | ₹60 | ₹75 |
| Critical | ₹45 | ₹60 | ₹85 | ₹115 |
| Over-Exploited | ₹60 | ₹90 | ₹120 | ₹150 |
3 Industrial Units
| Area Category | Groundwater Withdrawal (m³/day) | |||
|---|---|---|---|---|
| <200 | 200–<1000 | 1000–<5000 | 5000 & above | |
| Safe | ₹20 | ₹30 | ₹40 | ₹50 |
| Semi-Critical | ₹40 | ₹60 | ₹80 | ₹100 |
| Critical | ₹60 | ₹80 | ₹110 | ₹150 |
| Over-Exploited | ₹80 | ₹120 | ₹160 | ₹200 |
⛔ Deterrent Factors (Illegal Extraction Period)
KLD = Kilolitres per day (1 KLD = 1 m³/day)
| Groundwater Withdrawal (KLD) | <2 Years | 2–5 Years | >5 Years |
|---|---|---|---|
| <1000 | 1.00 | 1.00 | 1.25 |
| 1000–5000 | 1.00 | 1.00 | 1.50 |
| >5000 | 1.00 | 1.25 | 2.00 |
🚨 Delegation of Powers (Section 13.0)
CGWA has delegated powers to District Magistrates, Collectors, and Sub-Divisional Magistrates (Authorised Officers) to enforce the law against illegal groundwater extraction.
- Seal all unauthorized borewells/tubewells.
- Disconnect electricity to illegal pumping units.
- Launch prosecution against violators under Sections 15–21 of the Environment (Protection) Act, 1986.
Every valid NOC issued is automatically forwarded to the respective District Magistrate for monitoring.
📊 Groundwater Level Monitoring (Section 14.0)
Projects extracting significant groundwater must install Piezometers equipped with Digital Water Level Recorders (DWLR) and telemetry systems for continuous monitoring.
Mandatory Piezometers Required:
| Groundwater Withdrawal (m³/day) | No. of Piezometers Required |
|---|---|
| 0–1000 | 1 |
| >100 (Hard Rock Aquifer, Non-Industrial) | 1 |
| >500 (Alluvium Aquifer, Non-Industrial) | 1 |
❓ Most Searched FAQs on Environmental Compensation
1. What is the mandatory minimum amount for ECGW (Environmental Compensation)?
The minimum Environmental Compensation for illegal groundwater extraction is ₹1,00,000/- (Rupees One Lakh only). This minimum applies regardless of the quantity of water illegally extracted or the area category.
2. Who is authorized to levy and collect the Environmental Compensation?
The power is delegated to Authorised Officers, primarily District Magistrates, Collectors, and Sub-Divisional Magistrates. They can impose the ECGW, seal borewells, and disconnect electricity.
3. How does the Deterrence Factor affect the final compensation charge?
The Deterrence Factor is a multiplier (1.00 to 2.00) based on the duration of illegal extraction. For instance, illegal extraction of over 5000 KLD for more than 5 years attracts the highest factor of 2.00, essentially doubling the base compensation.
4. Is the compensation rate higher in Critical or Over-Exploited areas?
Yes. The Environmental Compensation Rate (ECRGW) is significantly higher in Over-Exploited (OE) areas compared to Critical or Safe areas, reflecting the high environmental stress in those regions.
5. Besides fines, what other legal action can CGWA take?
Authorized Officers are empowered to launch criminal prosecution against violators under Sections 15–21 of the Environment (Protection) Act, 1986, which includes imprisonment and further fines.
✅ Advisory for All Applicants
“No NOC – No Extraction.” Violations will attract heavy penalties and legal prosecution.
- Apply for CGWA NOC before starting any groundwater extraction operations.
- Ensure installation of digital water flow meters, rainwater harvesting, and piezometers.
- Maintain annual water quality records and submit them through the NOCAP Portal.
- Repeat offenders will face criminal prosecution and significantly higher deterrent factors.
- Minimum Environmental Compensation is ₹1,00,000/- (non-negotiable).
Expert Help for CGWA Rates & Compliance
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