FAQs

ABS mechanism has been evolved under the CBD and Nagoya Protocol to ensure that the users of biological resources share a portion of their gains/profits with the conservers of these resources which serves as an incentive for them to continue their efforts in conserving, preserving and maintaining the biological diversity and TK associated thereto. This works on the principle of equity which contributes to the conservation and sustainable use of the components of biological resources.

According to Section 2(g) of the Act, “fair and equitable benefit sharing” means sharing of benefits as determined by the NBA under Section 21.

Section 21 states that the NBA will determine the benefit sharing. The Authority in consultation with the local bodies impose terms and conditions while granting approvals, for securing equitable sharing of benefits.

In case of biological resource having conservation value or high economic value such as red sanders, sandalwood, agarwood or any other items as decided by the Authority from time to time, and including threatened species notified under section 38 of the Act, the benefit sharing shall not be less than 5% of the proceeds of the auction or sale amount or the purchase price, as the case may be, as determined by the Authority on case to case basis, as upfront payment. This includes from both cultivated and non-cultivated biological resources

With regard to the calculation of upfront payment as concerned, the NBA will calculate each variety/lines / hybrid, etc., as a separate biological resource and the upfront will be calculated accordingly.

In the event of change of location and quantity, refund or adjustment of the upfront payment will not be allowed

The benefit claimers are individuals or groups who conserve biological resources and their by-products, creators or those who possess/holds TK associated thereto [excluding codified traditional knowledge only for Indians]. This includes individuals/groups who provide information relating to the use of such biological resources, innovations and practices. The benefit claimers are entitled to receive the benefit-sharing component arising from the use of such biological resources and associated knowledge (Section 2(aa)).

Any person who intends to access the biological resources or TK associated thereto or both for any of the activities under Section 3, 4, & 6 shall make an application in that behalf to the concerned authority in the prescribed format. The NBA, SBB, or UTBC concerned, after scrutiny of the application and consultations with the BMC(s) concerned, may grant approval in the form of a written agreement on mutually agreed terms. The agreement consisting of terms and conditions to the users, including a benefit-sharing component payable to the NBA/SBBs/UTBCs.

The ABS amount realised from the users of biological resources and TK associated thereto on behalf of the conservers or holders of these resources and or knowledge. The NBA and SBBs/UTBCs distribute the ABS amount to beneficiaries for utilising it for the conservation or socio-economic development of the area from which these biological resources are accessed.

According to Section 21 of the Act, the determination of fair and equitable benefit sharing arising out of the utilisation of accessed biological resources, their derivatives, innovations and practices associated with their use and applications and knowledge relating thereto, is done in accordance with the mutually agreed terms and conditions between the users and BMC represented by the NBA.

The monetary benefits shall be paid to the National Biodiversity Fund by the users. The NBA then distributes the benefit sharing components to the benefit claimers, which may include individuals, groups of individuals or organisations.

utilising the benefit-sharing amount received by the NBA?
As per Section 27(2) of the Act, the benefit sharing amount realized by the NBA shall be utilised for the following purposes:

1. channelling benefits to the benefit claimers;
2. conservation, promotion and sustainable use of biological resources;
3. Socio-economic development of areas from where such biological resources or TK associated thereto have been accessed in consultation with the BMC. When it is not possible to identify the area from where the biological resources or TK associated thereto have been accessed, the fund shall be utilised for socio-economic development of the area where such biological resources occur; and
4. For any other activities to meet the purposes of the Act.

As per Section 32(2) of the Act, the benefit sharing amount collected by the SBBs/UTBCs shall be utilised for the following purposes:

1. the management and conservation of heritage sites;
2. channeling benefits to the benefit claimers;
3. compensating or rehabilitating any category of the people economically affected by notification under sub-section (1) of Section 37;
4. conservation, promotion and sustainable use of biological resources;
5. socio-economic development of areas from where such biological resources or TK associated thereto have been accessed in consultation with the BMC or the local body concerned. When it is not possible to identify the specific area from where the biological resources or TK associated thereto have been accessed, the fund shall be utilised for socio-economic development of the area where such biological resources occur;
6. making grants or loans to the BMCs; and
7. for any other activities to meet the purposes of the Act.
    

No. The collection fees to be paid to the BMC are in addition to the benefit-sharing component payable to the NBA/SBB.

The BMC is empowered under Section 41(3) of the BD Act to levy charges by way of collection fees from any person for accessing or collecting any biological resource for commercial purposes from areas falling within its territorial jurisdiction.

The collection fee, referred to as “access fee”, is, a nominal amount statutorily required to be paid to the BMC directly. BMC, as the overseer and protector, at the local level, of both the resource and the realisation of the right of the “benefit claimer”, besides being the custodian of the Biodiversity Register, is entitled to collect the fee, to meet part of its administrative expenses. As such, this statutory entitlement cannot in any way be considered as part of the benefit-sharing amount nor as a toll fee.

If a Section 3(2) applicant accesses certain biological resources, including digital sequence information or knowledge associated thereto, for research, the applicant has to pay the upfront payment as determined by the NBA. However, this upfront payment is not applicable in cases where the research is undertaken for academic purposes.

As per regulation 4 of the BD (ABS) Regulations, 2025, the applicant shall have to pay the benefit sharing amount to the NBA as per the slabs prescribed below:

Biological resources having conservation or high economic value, including species notified under Section 38 of the Act are subject to 20% more than the benefit sharing due.

If access is made to a biological resource that has conservation value, or high economic value such as red sanders, sandalwood, agarwood, or any other item identified by the Authority, including threatened species listed under Section 38 of the Act, the ABS component shall not be less than five percent of the proceeds of the auction or sale amount, or purchase price, as the case may be. This amount will be decided by the Authority on a case-by-case basis and must be paid as an upfront payment.

Are there any contradictions with the Wildlife (Protection) Act, 1972?
The ABS process remains the same for all biological resources, including those collected from wild. Section 59 of the BD Act provides that the provisions of the Act are in addition to, and not in derogation of, the provisions in any other law currently in force, especially those relating to forests or wildlife.

With regard to the benefit sharing, the beneficiaries may include the State Forest Department, the SBB, BMCs or any other stakeholders, as the case may be.

Yes. Under Section 7 of the Act, any Indian company can access biological resources for commercial utilisation only after giving “prior intimation” to the SBB/UTBC concerned. On being satisfied with the merits of the application, the SBB/UTBC may grant approval, subject to the terms and conditions as specified under Sections 23(b) and 24(2) of the Act.

The SBBs shall have the right to reject any application that is detrimental or contrary to the objectives of the BD Act, i.e., conservation and sustainable use of biological resources or equitable sharing of benefits arising out of such activity.

To have a check on misappropriation of biological resources, the Act provides that access to biological resources occurring in or obtained from India, including those deposited in repositories outside India, or TK associated thereto, is subject to the approval of the NBA. Further, it is mandatory to obtain approval from the NBA before seeking any IPR based on the biological resource and associated knowledge obtained from India.

Section 18(4) empowers the NBA, on behalf of the Central Government, to take any measures to oppose the grant of IPR in any country outside India, utilizing the biological resources which are found in or brought from India, including those deposited in repositories outside India, or TK associated thereto accessed, without the approval of the NBA.

Section 39 provides for designating institutions as repositories for the deposition of voucher specimens of different categories of biological resources, which were accessed with the approval of the NBA under the BD Act. Repositories serve as secure and scientific storage facilities for biological samples, including seeds, tissues, and DNA, ensuring long-term conservation of biodiversity. So far, 20 institutions have been notified as repositories by the Central Government under the BD Act.

Section 38 of the BD Act provides for notifying threatened species by the Central Government, in consultation with the State Governments, which are on the verge of extinction or likely to become extinct in near future and may prohibit or regulate their collection for any purpose and take appropriate steps to rehabilitate and preserve those species.

As per the recent amendments, the Central Government may delegate the power to notify the threatened species to the State Government, and in such a case, the State Government shall consult the NBA before issuing any such notification.

Section 37 (1) of the Act provides that based on the recommendations of the SBB, the State Government may, from time to time, notify in the Official Gazette, areas of biodiversity importance as Biodiversity Heritage Sites under this Act. Further, the SBB shall consult the local body and BMC concerned before making such recommendations. The State Government, in consultation with the Central Government, may frame rules for the management and conservation of all the biodiversity heritage sites as per Section 37(2) of the Act.

No. Section 5 exempts transfer or exchange of biological resources or TK associated thereto between institutions under collaborative research projects from obtaining approval for the purpose of research provided that such research projects conform to the policy guidelines issued by the Central Government from time to time. The principal investigator of the Indian institution is required to furnish the following to the NBA;

1. Information in a proforma for giving intimation to the NBA;
2. Approval of the concerned Ministry/Department of the State or the Central Government for the collaborative research project in the prescribed format; and
3. Copy of the MoU executed between the concerned institutions.

No. The collaborative research projects that fulfil the conditions laid down in the policy guidelines notified by the Central Government are exempted from the approval for undertaking research under Section 5 of the BD Act.

However, a proforma, along with the approval of the Government, in the format prescribed by the NBA, has to be submitted to the NBA by the Indian institution before the exchange or transfer of biological resources. While transferring the results of the research to the institute outside India, approval from the NBA has to be obtained by the Indian collaborator.

No. Scientists, researchers, and students are not required to obtain prior approval from the NBA for comparing holotype or herbarium samples within institutions such as herbaria, museums, universities, BSI, or ZSI. However, prior approval from the NBA is mandatory for taking such materials outside India.

Yes. Both foreign individuals and entities fall under Section 3(2) of the Act. Hence, such persons have to obtain prior approval of the NBA by applying in Form-1 for access to biological resources or knowledge associated thereto for research or bio-survey and bio-utilisation as per Rule 13 of the BD Rules, 2024.

If a Section 3(2) entity accesses biological resources from any place or location within India, including from a trader or the wholesale market or institute or repository in India, it is mandatory to obtain prior approval from the NBA by applying in Form-2 for accessing the biological resources for commercial utilization under Section 3 of the BD Act read with Rule 13 of the BD Rules, 2024.

In the first instance, the Section 7 company must give prior intimation to the concerned SBB/UTBC, as the case may be, for accessing the biological resource for extracting essential oil for commercial utilization.

Subsequently, the Section 3(2) company has to obtain prior approval of the NBA, by filing an application in Form-2 to access the biological resource (essential oil) for commercial utilisation.