Monday, September 23, 2013

Convention on Biological Diversity and Access and Benefit Sharing in India.(Working Draft)

India is one of the world’s most biodiversity rich regions, with approximately 8% (over 89,000 species of animals and 46,000 species of plants) of the world’s total variety of plants and animals.[1]Many policies, Acts, and Rules have been formulated by the Government of India with an aim to safeguard the forest, wildlife and habitats that per se cover the default biodiversity by direct and indirect means. Such government legislations prior to Biological Diversity Act 2002 are as follows:
1. Indian Forest Act, 1927
2. Indian Wildlife Protection Act, 1972
3. Forest Conservation Act, 1980
Basically, Indian Forest Act deals with overall protection & management of forests. Similarly, Indian wildlife protection Act aims to conserve the biodiversity with specific focus of wildlife (both animals and plants) with in situ and ex situ measures and Forest Conservation Act is focused on conservation of biodiversity through habitat protection. These Acts are very important for the protection of biodiversity in India. However, they hardly regulate the access to biogenetic resources or about sharing the benefits arising from such use.
India signed the CBD on 5th June 1992 and ratified it on 18th February 1994 and as per the mandate of the CBD, India is bound to make a concerted effort to ensure that the broad objectives of the CBD and other associated relevant instruments are addressed at a domestic level and proper guidelines for ABS mechanism are in place. Prior to the ratification of CBD by India, there were no specific legislations or policies dealing with the issues related to biodiversity and ABS. Even after the CBD entered into force in late 1993, it took India almost a decade to introduce the biodiversity legislation. After a very extensive and long consultations and discussions at different level, the government of India finally adopted the Biological Diversity Act (BDA) in May 2002.
The BDA aims to provide for conservation of biological diversity, sustainable use of its components and equitable sharing of the benefits arising out of the use of biological resources.[2] The BDA outlines a framework and process by which resources can be accessed, and details the procedural hierarchy that exist for those parties interested in doing so.[3] It also outlines measures for sharing of benefits from the use of biodiversity, including transfer of technology, monetary returns, joint research & development etc.[4] Furthermore it provides measures to conserve and sustainably use biological resources, including habitat and species protection, environmental impact assessments (EIAs) of projects, integration of biodiversity into the plans, programmes, and policies of various departments/sectors.[5]
Scope:
The Act extends to the whole of India[6] and regulates the issues relating to biological resources. The Act defines biological resources as, plants, animals and micro organisms and parts thereof, and their genetic material and by-products, with actual or potential use or value, but does not include human genetic materials.[7]
Regulating Authorities
To oversee the conservation, sustainable use and sharing of the benefits from the use of biological resources and traditional knowledge associated thereto, the Act has established different regulating authorities at different level. At the national level, National Biodiversity Authority (NBA) has been established.[8] It is mandatory to get approval from the NBA prior to conduct any activities related to biological resources.[9] At the state level, State Biodiversity Board (SBB) has been established[10] and it performs functions similar to that of NBA (but in state level). Finally, the Act establishes Biodiversity Management Committees (BMC)[11], within every local body and they shall be governed by existing village level political mechanism.
 ABS provisions in Biological Diversity Act: -
The underlying principle of ABS is to ensure that access to biological resources and/or associated traditional knowledge is based on a set of principles, terms and conditions that include prior informed consent (PIC), mutually agreed terms (MAT) and ensuring fair and equitable sharing of benefits. In the following section we shall examine the provisions of the BDA in regard to ABS.
Access: -
Any parties interested in accessing the biological resources and/or traditional knowledge associated thereto for research or for commercial utilization or bio-survey and bio-utilization must obtain approval from the NBA prior to conducting such activities.[12] This provision applies only to the persons as specified by section 3 (2) of the Act[13] and exempts Indian citizens and institutions. However, Indians and Indian institutions need to inform the SBB prior to undertaking any research with the intent of commercialization.[14]
The applicants interested in seeking access to biological resources and/or associated traditional knowledge must fill application form for access to biological resources and/or associated traditional knowledge (form I) under the Act.[15] Application processing fee of ten thousand Indian currencies is levied on the applicants at the time of submitting the application.[16] All applications are reviewed in terms of nature and quantity of material to be accessed, the timing, geographical location and other related issues.[17] The application are approved only after extensive consultation is made with an expert committee[18] and local bodies from whose jurisdiction the biological resources and associated traditional knowledge will be accessed.[19]
Access to biological resources by local people and communities of the area, including growers and cultivators of biodiversity, and vaids and hakims, who have been practising indigenous medicine are exempted from the purview of this Act.[20] Furthermore, normally traded commodities (NTCs) (Currently 190 species are designated as NTCs) are also exempted provided they are used as commodities.
The NBA shall give public notice of every approval granted for access to biological resources.[21]
Benefit Sharing: -
The NBA is responsible for securing equitable sharing of benefits arising out of the use of accessed biological resources, their by-products, innovations and practise associated with their use and applications and knowledge relating thereto in accordance with MATs at the time of granting approval to the applicants.[22] The terms or manner of benefit sharing must be determined by the NBA as provided in section 21 (2) [23]of the Act.
It is mandatory to obtain prior approval of the NBA if anyone wishes to apply for intellectual property rights (IPR) based on any research information on a biological resources obtained from India[24] and at the time of granting such approval the NBA may impose benefit sharing fee or royalty or both or impose conditions including the sharing of financial benefits arising out of the commercial utilisation of such rights.[25]
The Act has established National Biodiversity Fund (NBF)[26] with a purpose of channelling benefits, to the conservers of biological resources and creators and holders of knowledge, for the conservation of areas from where such biological resources of knowledge associated thereto has been accessed and for the socio-economic development of such areas in consultation with the local bodies concerned.[27] All the grants and loans made by the central government as per section 26[28] and monetary benefits arising from the benefit sharing shall be deposited to the NBF unless otherwise directed by the NBA.[29] However, in cases where biological resources was a result of access from a specific individuals or group of individuals organisations, the NBA may direct the benefit procured to be paid directly to such parties in accordance with the terms of any agreements.[30]
In the state level there is a State Biodiversity Fund (SBF), which is administered by the SBB. The main aim behind establishing this fund is to provide for the management and conservation of heritage sites and biological resources as well as helping in socio-economic development of areas from where biological resources or knowledge associated thereto has been accessed.[31] A similar mechanism is designated to exist at the village level[32]; this Local Biodiversity Fund (LBF) shall be used for “conservation of biodiversity in the areas falling within the jurisdiction of the concerned local body and for the benefit of the community in so far such use is consistent with the conservation of biodiversity.”[33]
Observation: -[34]
The BDA in its preamble explicitly acknowledges the obligation under the CBD and states that this very Act has been enacted to provide for conservation, sustainable utilisation and equitable sharing of benefits arising out of utilisation of genetic resources and also to give effect to the CBD. The objectives of the CBD have been addressed somehow in the BDA and it can be said that India’s engagement with ABS issues has been progressive and noteworthy. However, there are many things that is lacking in the BDA in comparison with the provisions of CBD. The BDA vests absolute authority to the NBA for granting PIC, concluding MTAs, regulating the sharing of benefits etc. Article 8 (j) of the CBD has been blatantly ignored by this Act as it does not give any rights to the Indigenous people and communities relating to the granting of PIC, negotiating the benefit sharing via MTAs etc. The provision of consulting the local bodies before granting PIC is present but is not very exclusive.
The BDA imposes restriction not only to access but also to the transfer of results of such research relating to any biological resources occurring or obtained from India to non Indian individuals and institutions without previous approval of the NBA. Furthermore, the Act makes it mandatory for obtaining prior approval from the NBA if anyone wishes to apply for IPRs based on any research or information on a biological resource obtained from India.[35]




References: -
[1]
[2] The Biodiversity Bill, 2002.
[3] J.R. Ghose, “Access and Benefit Sharing Systems: An Overview of the Issues and the Regulation”, 2003, P. 19.
[4] Sutar & Swain, Implementation of Biological Diversity Act in India: An Overview with Case Studies, Regional Centre for Development Cooperation, 2011, P. 20- 32
[5] Ibid.
[6] The Biological Diversity Act (2002), section 1 (2),
[7] Ibid, section 2 (c)
[8] Ibid, section 8 (1)
[9] Ibid, section 3
[10] Ibid, section 22.
[11] Ibid, section 41
[12] The Biological Diversity Act (2002), Section 3 (1).
[13] Section 3 (2) of the Act provides the list of persons who shall be required to take the approval of the National Biodiversity Authority which are as follows: -
a)       a person who is not a citizen of India;
b)       a citizen of India, who is a non-resident as defined in clause (30) of section 2 of the Income-tax Act, 1961;
c)       a body corporate, association or organisation-
i)         not incorporated or registered in India; or
ii)       Incorporated or registered in India under any law for the time being in force which has any non-Indian participation in its share capital or management.
[14] The Biological Diversity Act (2002), Section 23 (b).
[15] Ibid, section 19 (1).
[16] Access and Benefit Sharing Experiences from India, National Biodiversity Authority, this document can be found at http://nbaindia.org/uploaded/pdf/ABS_Factsheets_1.pdf ( accessed in 19th September 2013).
[17] Ibid.
[18] The Biological Diversity Act (2002), Section 41(2).
[19] Ibid.
[20] Ibid. Section 7.
[21] Ibid, section 19 (4).
[22] Ibid, section 21 (1).
[23] As per section 21 (2) the benefit sharing must be determined in all or any of the following manner, namely: -
a)       grant of joint ownership of intellectual property rights to the National Biodiversity Authority, or where benefit claimers are identified, to such benefit claimers,
b)       transfer of technology;
c)        location of production, research and development units in such areas which will facilitate better living standards to the benefit claimers;
d)       association of Indian scientists, benefit claimers and the local people with research and development in biological resources and bio-survey and bio-utilisation;
e)       setting up of venture capital fund for aiding the cause of benefit claimers;
f)        payment of monetary compensation and other non- monetary benefits to the benefit claimers as the National Biodiversity Authority may deem fit.

[24] The Biological Diversity Act (2002), section 6 (1).
[25] Ibid, section 6 (2).
[26] Ibid, section 27.
[27] Ibid, section 27 (2).
[28] As per section 26, the central government may provide the NBA grants or loans to be utilised for the purpose of achieving the objectives of the Act.
[29] The Biological Diversity Act (2002), section 21 (3).
[30] Ibid.
[31] Ibid, section 32.
[32] Ibid, section 43.
[33] Ibid, section 44.
[34] Ibid, section 4.
[35] Ibid, section 6.

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