Favouring a reward and penalty mechanism to make companies greener, Environment Minister Jairam Ramesh on Monday said he had requested Finance Minister Pranab Mukherjee to impose fiscal penalty on companies violating environment norms and also incentives to those abiding by it.

"There is no incentive for good environment performance and no disincentive for the companies which are not doing good. I have taken this issue up with the finance minister. Hope the FM has something to say about this in the Budget," the minister said after meeting with representatives of Ficci.

The ministry also plans to set up a compliance committee along with Federation of Indian Chambers of Commerce and Industry on a public-private partnership mode to look into issues of small and medium enterprises and help them comply with the environmental laws.

This

is the second meeting Ramesh is having with an industry body. Ramesh had last week met industry lobby CII to allay concerns that environmental concerns had become a stumbling block for development.

After the Confederation of Indian Industry meeting, the minister had said that he'd set up an advisory council with participation of industry to look into policy issues regarding environment clearances.

The council, to meet once in three months, will examine suggestions on changes required in policy for faster environment and forest clearances.

Image: Jairam Ramesh