The Biological Diversity Act, 2002 was enacted by the Parliament of India to provide for the conservation of biological diversity, sustainable use of its components, and fair and equitable sharing of benefits arising out of the use of biological resources. It was born out of India’s obligations under the Convention on Biological Diversity (CBD), 1992.
Three-Tier Institutional Structure
The Act operates through a decentralized mechanism to ensure governance from the national to the local village level.
1. National Biodiversity Authority (NBA)
- Status: Statutory and autonomous body established in 2003, headquartered in Chennai.
- Functions: Regulates activities involving access to biological resources by foreign individuals or entities. It advises the Central Government on matters relating to conservation and identifies “Biodiversity Heritage Sites.”
- Approval Power: Mandatory approval from NBA is required for foreign citizens or companies to access biological resources or transfer results of research.
2. State Biodiversity Boards (SBB)
- Status: Established in all states.
- Functions: Regulates access to biological resources by Indian citizens or entities for commercial utilization.
- Constraint: SBBs do not have jurisdiction over Union Territories; the NBA performs the functions of an SBB for UTs.
3. Biodiversity Management Committees (BMC)
- Status: Formed at the local body level (Panchayats and Municipalities).
- Functions: Responsible for promoting conservation and documentation of biological diversity.
- PBR: Their primary mandate is the preparation of People’s Biodiversity Registers (PBR), which document local knowledge of flora and fauna.
Access and Benefit Sharing (ABS)
ABS is the central pillar of the Act. It ensures that when a biological resource is used commercially, the benefits (financial or otherwise) are shared with the “benefit claimers” (local communities/traditional knowledge holders).
- Benefit Sharing: Includes monetary compensation, transfer of technology, or joint ownership of Intellectual Property Rights (IPR).
- Exemptions: The Act exempts “normally traded commodities” (like spices or crops) and traditional healers (Vaidyas and Hakims) from certain ABS requirements to protect local livelihoods.
Key Provisions of the 2023 Amendment
The 2023 Amendment introduced several controversial yet impactful changes to the original framework.
| Feature | Original 2002 Act | Amended 2023 Act |
| AYUSH Practitioners | Required to intimate SBBs for accessing bio-resources. | Exempted from intimation and ABS for local use. |
| Foreign Investment | Strict restrictions on companies with any foreign equity. | Companies “incorporated in India” but with foreign investment are now treated as Indian entities for easier access. |
| Offences | Criminalized; included imprisonment. | Decriminalized; replaced jail time with heavy financial penalties. |
| IPR Approval | Required before applying for a patent. | Approval required only before the grant of the patent, not at the time of application. |
Biodiversity Heritage Sites (BHS)
Under Section 37, State Governments can notify areas of biodiversity importance as BHS in consultation with local bodies.
- Management: Handled by the local BMCs.
- First BHS in India: Nallur Tamarind Grove in Bengaluru, Karnataka.
- Recent Addition (2024-25): Several new sites including Arittapatti (Tamil Nadu) and Yaya Tso (Ladakh) have been notified to protect unique high-altitude ecosystems and cultural landscapes.
Prohibitions and Legal Penalties
- Bio-piracy: Unauthorized extraction of biological resources or traditional knowledge for commercial gain is strictly prohibited.
- Penalties (Post-2023): Penalties range from ₹1 lakh to ₹50 lakh, and in cases where the damage is quantifiable, the penalty can go up to twice the amount of the gain made or damage caused.
- Adjudication: The 2023 amendment empowers an officer not below the rank of Joint Secretary to hold inquiries and impose penalties.
Important Trivia for UPSC
- Nagoya Protocol: India is a party to this 2010 protocol which provides a legal framework for the implementation of the ABS mechanism of the CBD.
- Section 38: Empowers the Central Government to notify species which are on the verge of extinction as “threatened species” and prohibit their collection.
- National Biodiversity Fund: Receives all fees and royalties collected by the NBA, which are then channeled back for conservation and benefit-sharing.
- Biological Resources: Includes plants, animals, and micro-organisms or parts thereof, but excludes human genetic material.