(1) The Central Government may, by notification in the Official Gazette, establish a fund to be known as the Environmental Protection Fund.
(2) There shall be credited to the Fund—
(a) the amount of penalty imposed under the Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981), and under this Act;
(b) the interest or other income received out of investments made from the Fund; and
(c) any other amount from such sources, as may be prescribed.
(3) The Fund shall be applied for—
(a) the promotion of awareness, education and research for the protection of environment;
(b) the expenses for achieving the objects and for purposes of the Air (Prevention and Control of Pollution) Act, 1981(14 of 1981) and under this Act;
(c) such other purposes, as may be prescribed.
(4) The Central Government shall notify the administrator for the administration of the Fund and other matters connected therewith and incidental thereto in such manner, as may be prescribed.
(5) The Central Government shall allocate seventy-five per cent. of the amount of penalties to the State Governments or Union territory administrations, which has been credited to the Fund.