CBDT Notification for National Mission for Clean Ganga (NMCG)

On March 26th, 2024, the Ministry of Finance, under the Department of Revenue, Central Board of Direct Taxes, issued Notification No. 36/2024. This notification relates to the tax treatment of the National Mission for Clean Ganga (NMCG), an authority committed to the revitalization, conservation, and management of the River Ganga.

Before we proceed with the blog, let’s first have an overview of the National Mission for Clean Ganga (NMCG).

National Mission for Clean Ganga (NMCG)

National Mission for Clean Ganga (NMCG) is a crucial initiative for the restoration, protection, and management of the River Ganga. NMCG is dedicated to improving the River Ganga’s water quality, managing waste, and promoting sustainable practices to restore its health and ecosystem. As a commitment, NMCG is engaged in developing infrastructure, initiating pollution control measures, and encouraging community participation to achieve long-term goals.  

NMCG was registered on August 12th 2011 under the Societies Registration Act 1860. However, initially, NMCG was a part of the National Ganga River Basin Authority (NGRBA), which was dissolved and replaced by the National Ganga Council (NGC). NGC is the apex body established by the Government of India to coordinate and manage the conservation and restoration efforts for the River Ganga.

Objectives of the National Mission for Clean Ganga (NMCG)

The objectives of the National Mission for Clean Ganga (NMCG) include the following:

1. Implement measures to prevent, control and reduce pollution.
2. Rejuvenate the river using knowledge and adequate resources.
3. Maintain minimum ecological flows in the River Ganga to improve water quality and support sustainable development.
4. Restore the ecology of the river through various biodiversity initiatives and sustainable practices.
5. Develop the riverfront for management and greater public access.

The Five Tier Structure of National Mission for Clean Ganga (NMCG)

The NMCG follows a five-tier structure for the prevention and abetment of pollution in the holy river, which operates in the following way:

1. National Ganga Council (NGC) – The Prime Minister acts as the superintendency and provides strategy and directions for Ganga Rejuvenation.

• Empowered Task Force (ETF)- The ETF,chaired by the Union Minister of Jal Shakti (Department of Water Resources, River Development and Ganga Rejuvenation), ensures the project’s implementation and execution.

• National Mission for Clean Ganga (NMCG)—NMCG works under the Minister of Jal Shakti and is known as the “implementing wing.” It has a two-tier structure: a Governing Council and an Executive Committee.
• State Ganga Committees (SCG) – Every state through which the River Ganga flows have a State Ganga Committee and these states include Uttarakhand, Uttar Pradesh, Bihar, Jharkhand, West Bengal, Himachal Pradesh, Rajasthan, Madhya Pradesh, and Chhattisgarh.

• District Ganga Committees (DGC)- DGC operates at the district level in areas adjoining the River Ganga and its tributaries. It implements and monitors the activities for pollution control.

Budget Allocation for National Mission for Clean Ganga (NMCG)

In the Union Budget 2024-2025, the government allocated a budget of INR 3,345.70 crores for the National Ganga Cleaning Plan. This reflects the government’s commitment and effort to preserve the Ganga.

The Need for a National Mission for Clean Ganga (NMCG)

Ganga is more than just a river for Indians. It holds religious significance Hindus who refer to it as Goddess Ganga. This river plays a crucial role in Hindu rituals and religious ceremonies. Therefore, the River Ganga holds immense cultural, ecological, and economic importance for the people of India.

NMCG is need of the hour to address the necessity for its conservation and to preserve if for the future generations. Some of the reasons for the need to have NMCG include the following:

1. Environmental Stability – The River Ganga, a habitat for diverse animal species, is under threat from degradation and pollution. NMCG’s proactive measures have been instrumental in safeguarding the health of the Ganga, ensuring its environmental stability and the preservation of its rich biodiversity.

• Cultural & Spiritual Significance—This river holds immense cultural and spiritual significance in India, so its restoration is a top priority. This river connects people with their culture.

• Water Supply & Public Health – Many people depend on the River Ganga for to meet their agricultural, irrigational, and drinking water requirements. The pollution in the river invites health hazards for the public and thus ensuring the sanitation and clean water supply is managed by NMCG.

• International Commitments—India is a party to various international agreements relating to environmental conservation. NMCG reflects the government’s efforts towards such commitments.

• Public Participation & Awareness—NMCG, through its workshops and various activities, has educated the public about the significance of Ganga and the threats it is facing. It stimulates a sense of responsibility in individuals to help rejuvenate the river.

• Economy & Livelihood—The conservation of the River Ganga contributes to tourism because of its deep value, betters public health by ensuring clean water, and preserves biodiversity by treating pollution and sewage.

Pre-NMCG Efforts to Clean and Preserve River Ganga

Let us look into a few efforts that have been taken to achieve the objectives of Ganga Cleanliness and Protection before the establishment of NMCG:

1. Ganga Action Plan (GAP) Phase I – The Ganga Action Plan was established in 1985 by the Ministry of Environment and Forests. It was the first River Action Plan to be introduced for the improvement of the quality of water by treating sewage.

• Ganga Action Plan (GAP) Phase II—This plan, launched in 1993, aimed to boost the efforts of Phase I by covering additional stretches of the River Ganga and its tributaries. Its focus was on sewage treatment and improving the sanitary conditions of urban areas spread along the river.

• National River Conservation Plan (NRCP)—GAP was incorporated under the broader National River Conservation Plan in 1995. This plan aimed to tackle the pollution of various rivers across India, including the Ganga. It focused on wastewater management and improvement in urban sanitation.

• National Ganga River Basin Authority (NRGBA)—The National Ganga River Basin Authority (NGRBA) was established in 2009 by the Government of India under the Environmental Protection Act of 1986. It aims to supervise the conservation of the River Ganga basin and improve the ecological health of its water.

• Namami Gange Mission – The Namami Gange Mission was launched in 2014 to ensure the river’s long-term health with support from local communities.

• Riverfront Development—Riverfront development projects were started to restore the bank of the Ganga, enhancing its beauty and making it accessible to the public.

NMCG’s Efforts and Achievements in Transforming the Ganga

NMCG was approved as a flagship program of the Government of India in June 2014 to accomplish its objectives. Given below are the initiatives by the NMCG for the development of the Ganga:

1. Sewage Treatment Capacity- The sewage infrastructure project aims to enhance the treatment capacity of sewage by the year 2026 by handling 7000 million litres a day. Besides, various other projects are also in the pipeline.

• Finance –Funds are allocated to combat Ganga pollution through contributions to sewage management, urban river plans, freshwater ecology courses, and various similar projects.

• International Collaborations – NMCG’s efforts to rejuvenate the Ganga are not confined to national borders. It actively collaborates and discusses our initiatives with other organizations and countries, seeking their support and expertise. This global collaboration underscores the universal importance of the Ganga and the collective responsibility we all share in its rejuvenation.

• Legislation—Various rules and laws have been implemented to promote this initiative and achieve its goals listed under the Environmental Protection Act of 1986.

• The NTCoE—NMCG-TERI Centre of Excellence on Water Reuse is a crucial part of our efforts to transform the Ganga. This centre promotes sustainable water reuse practices through research and innovation. Its work is of paramount importance in ensuring the long-term health and sustainability of the Ganga, making it a cornerstone of our initiatives.

• Afforestation—Financed by NMCG and the State Forest Department of the particular state, this project monitors the plan’s implementation. It is crucial to maintain the river’s ecology and natural flow.

CBDT Notification

CBDT issued a notification regarding NMCG under Section 10(46) of the Income Tax Act, of 1961. Section 10(46) provides an exemption to income for entities formed under the government. Such entities include scientific research institutes, international trade-promoting organizations, social research groups, and knowledge dissemination agencies.

As notified by CBDT, under this section, NMCG is granted exemption from paying income tax derived from specific activities related to its objectives—rejuvenating the River Ganga and its tributaries, seeking to help the organization carry out its excellent work without any tax burden.

Income Qualified for Exemption

If the income is derived from sources that fulfil the following conditions, it is granted exemption from paying income tax:

1. Benefits the Public
2. Grants-in-aid received from the Government of India
3. Interest earned on bank deposits

Conditions for Exemption

The conditions for exemption include:

1. Not engaged in any commercial activities
2. Income must be consistent
3. Fulfilment of Income Tax filing obligation

Effective Years

The notification shall be effective for the Assessment Year 2021-2024.

Conclusion

Hence, a notification as per the CBDT is an approach to supporting the preservation of the River Ganga, which holds immense sentimental value and cultural, religious, and spiritual significance for the people of India. NMCG operates on various levels backed by government funding to maintain the ecological balance.

Exemption under Section 10(46) of the Income Tax Act,1961 motivates the organization to work without a tax burden, however, with some conditions applied.  

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