Environmental Relief Fund was established under the provisions of

Correct option is C

Introduction
· The Environmental Relief Fund (ERF) is a specialized financial mechanism created to provide immediate relief to victims of accidents occurring while handling hazardous substances.
· It operates on the principle of "no-fault liability," ensuring that compensation is provided regardless of whether the owner's negligence is proven.
· This fund acts as a safety net that bridges the gap between the occurrence of an industrial disaster and the final settlement of legal claims.

Information Booster
· The Public Liability Insurance Act, 1991 is the legislation that mandated the establishment of the Environmental Relief Fund to handle claims from chemical accidents.
· Under Section 7A of this Act, the Central Government is authorized to establish the fund to pay relief to people affected by accidents involving "hazardous substances" beyond the insurance limit.
· Owners of industries handling hazardous chemicals are required to contribute an amount equal to their insurance premium to this fund.
· The fund is managed by a designated authority, often a nationalized bank or a specialized body, and is utilized specifically when the damage exceeds the maximum insurance cover prescribed under the Act.
· It ensures that even if an industrial unit becomes insolvent after a disaster, the victims have access to a centralized pool of money for medical and financial assistance.

Additional Knowledge
· The Environment (Protection) Act, 1986 serves as an umbrella legislation for the protection and improvement of the environment but focuses on regulatory standards and pollution control rather than specific insurance-linked relief funds for victims.
· The Indian Wild Life (Protection) Act, 1972 was enacted to provide for the protection of wild animals, birds, and plants and to ensure the ecological security of the country through the establishment of National Parks and Sanctuaries.
· The Forest (Conservation) Act, 1980 was formulated primarily to check the rapid deforestation and diversion of forest lands for non-forestry purposes, requiring prior approval from the Central Government for any such land use change.