Why in news?
On 20 March 2026 the National Productivity Council (NPC) signed an agreement with the Ministry of Environment, Forest and Climate Change to act as the Environment Audit Designated Agency. NPC will now regulate and certify third‑party environmental auditors for industries across India.
Background
Established in 1958 under the Department for Promotion of Industry and Internal Trade, the NPC provides consultancy and training services to improve productivity in agriculture, industry and services. India is a founding member of the Tokyo‑based Asian Productivity Organisation, and NPC serves as its Indian constituent. With a governing council that includes representatives from government, business and labour, NPC’s mission is to foster innovation‑led productivity and sustainable growth.
New mandate and responsibilities
- Certification of auditors: NPC will develop eligibility criteria, conduct examinations and register professionals authorised to perform environmental audits.
- Monitoring and enforcement: The agency will maintain a digital database of auditors, monitor their performance, and undertake disciplinary actions if standards are violated.
- Capacity building: NPC will conduct training programmes to familiarise auditors and industries with environmental laws such as the Environment Protection Act 1986, Water Act 1974 and Air Act 1981.
- Policy support: Insights from audits will help policymakers improve compliance, streamline approvals and encourage sustainable practices in manufacturing and mining.
Significance
A credible environmental audit framework strengthens India’s regulatory regime while allowing industries to grow responsibly. By entrusting NPC with this role, the government aims to build a pool of qualified auditors, reduce environmental violations and foster public confidence in industrial projects.
Sources: PIB
